Changing Long Distance Service Is Easy

You can change your long distance carrier anytime you want and take advantage of better rates. Find out all you need to know.

So, you're ready to investigate a new long-distance telephone plan? Well, the good news is that you have many options and long distance rates have never been cheaper. To find the most economical way to make long-distance calls, you'll have to determine your calling patterns. Also, because we now have the option of making long distance calls by means other than landline phones, you should consider what other communications options you already have in place (for example, a cell phone or a broadband Internet connection).

Calling Patterns: Where, How Long, How Often

To determine your calling patterns, make some notes on how many long-distance calls you make each month, where you are calling (within the United States or internationally), and how much time you talk on each call. If you have old phone bills from the past year, looking at them will help you figure out what kind of long-distance caller you are. Do you make many calls during daytime business hours? Or are most of your long-distance calls made after 7 P.M. or on weekends? Do you only spend a few minutes on each long-distance call, and you don't make many calls? Do you make just a few calls, but each call lasts for more than a half-hour?

If you consistently make many long-distance calls during daytime hours, you are probably going to want a plan that offers unlimited long-distance calls for one monthly fee. But if you make most of your long-distance calls during evenings and weekends and/or you don't spend a lot of time on the phone, you may be better off paying for long distance calls by the minute or using a cell phone plan that offers free calls when made during night and weekend hours.

If you make calls to relatives and friends in another country, probably your best deal is with a prepaid phone card specifically for the country you wish to call.

Let's take a simple example for someone who prefers to use a landline long-distance telephone plan. The table below shows what your bill would be for various plans, each having different per-minute rates and monthly fees.

When you are using less than 30 minutes of long-distance time per month, a plan that offers an inexpensive 5¢ per-minute rate, but requires a $15 fee, is more expensive than the other two plans that charge higher per-minute rates with lower monthly fees. Paying a flat rate of $30 per month for unlimited long distance is only economical if you have more than six hours of long distance calls per month.

Know Your Options

You can have long distance telephone communications via a landline phone, via a cell phone, via a Digital Subscriber Line (DSL) telephone line, or via a broadband Internet connection using Voice Over Internet Protocol (VOIP). When using a landline phone, you can get long-distance service through a monthly plan with a major telephone company such as Qwest or AT&T, or with a smaller company using a "10-10" dial around service. You can also make long-distance calls with a prepaid phone card.

Consider what you have already when trying to decide what long distance service to use. For example, if you don't have a broadband Internet connection, in order to subscribe to a VoIP calling plan costing $25 or $30 per month, you'd have to pay an additional amount for the broadband Internet service. It might not be worthwhile.

Using a cell phone plan with its free nights and weekends minutes might seem like a good idea, but if you don't already have a cell phone with that kind of plan, you will most likely spend $50 per month to get those "free" long distance calls.

Read the U.S. Federal Trade Commission article Long Distance Deals for advice on comparison shopping for phone service.

Know Your Fees

• IntraLATA Calls:Check out who covers your intraLATA calls. These calls may also be labeled "local toll calls." These are calls that are outside your local calling area but not far enough away to be considered long distance. In the past, local phone companies handled these calls. Now, you can choose a company to cover your local toll calls.

• Telephone Slamming: Watch out for telephone slamming. This occurs when long-distance companies switch your service over to their service without notifying you. Your long-distance rates could change because of the transfer. The FCC requires long-distance companies to obtain a customer's permission to switch service over. If you get slammed, you do not have to pay your new bill, provided you take action through the FCC within 30 days. See the AARP article Phone Slamming on Long Distance Calling Plans for more information.

• Calling Cards:There are two types of calling cards: prepaid (where you pre-pay for a certain number of minutes and your calling cards declines with use) and regular (where you receive a monthly charge, typically on your regular phone bill). Most long-distance plans come with the option of signing up for a regular calling card. Be careful of the calling cards offered with your landline long-distance plan. These cards usually have expensive per-minute rates and additional fees. If you use a prepaid telephone calling card, there are usually fees in addition to the per-minute rates. There are fees per call, extra fees for calls made from pay phones, and the the value of the card is reduced over time even if you don't use it. Be aware of what additional fees are added to your super low per-minute rate.

• Additional Charges: Know what your telephone service provider charges for additional services. Directory assistance charges can range from $.99 per call to $2.50 per call, depending on what phone number you use and who your provider is. So know what your company charges and which number you should use.

How to Change Your Long Distance Telephone Service

If you have a landline telephone and wish to change your long-distance service provider, you can follow the steps below.

Step 1: Determine your long-distance calling patterns so you can choose a plan that fits your calling habits.

Step 2: Research the different long-distance services available; compare what your monthly bill would be for your calling pattern. Choose a provider and order service from your newly found long-distance company.

Step 2.5: This is only half a step because not everyone is required to do it. In some states, it is mandatory for long-distance carriers to notify a "third-party verification service" when someone changes carriers. Once they do that, the service will place an automated phone call to your house and ask you to confirm your choice or you might be transferred to someone else to verify the change.

Step 3: Ask yourself the following question: "Did I ever tell my local phone company not to change my long distance without my permission?" If you didn't, go to the next step. If you did, or you're just not sure, get your local provider on the phone. Ask them if you have a "PIC Freeze" on your long distance. If you do, this means that there may be some additional steps you must take in order to switch your long distance.

Note: Your local phone company may charge you a "PIC switching fee" to change your status. It's usually less than $10 and your new long-distance company may reimburse you, so be sure to ask them.

Step 4: Next, someone has to tell your local phone company you're switching long-distance carriers. The reason for this is that your local phone company owns the wires that go into your house, and they also own the switches that connect your long-distance calls. So, one of two things will happen here: Either your new long-distance company will "handle the switch," meaning you do nothing; or your new company will give you a "PIC code," which you must submit to your local phone company.

Step 5: Within 1 to 10 days after you place an order, you'll be ready to verify your new carrier. Do that by calling 1-700-555-4141 (AT&T). If your new long distance service isn't connected after 10 days, give the new provider a call.

Step 6: Once you've confirmed your new service, give your old carrier a call to formally cut your ties. Don't worry, they won't get mad. They may even offer you a better deal than you have now.

Step 7: If you want to prevent other long-distance companies from hijacking your service, call your local phone company to request the "PIC freeze."

For more information on telephone service, read the related articles in our Knowledge Center Library.

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