Before signing up for a new local service provider, you may want to consider the following questions.
If you are thinking of changing local phone service or you are moving to a new location use this quick and simple checklist to make sure you are getting the plan right for you:
Before signing up, know all your choices. Most phone books provide a listing of all the local phone service providers within their distribution area. Be aware that the listed companies may not provide service in your part of town, and some may only offer limited options, or only serve business — not residential — customers. If you are considering Internet calling or going wireless as an alternative, check out our tips on other service options.
Check the Internet to identify the competitors that will serve you. Checking Internet services that offer price comparisons can be useful. Be sure to check out several sites and compare the results, because many of these comparison shopping web sites earn money through advertising and marketing arrangements with products or service providers, and therefore may not display all possible service options.
Evaluate other plans relative to your current plan. Different wireline plans, wireless and Internet services may have contrasting definitions of a "local" region. Find out how the provider you're interested in defines your local toll free calling region.
Determine what "hidden" fees and surcharges the company adds on to its advertised price. These charges, along with taxes, can add as much as 20% or more to the bottom line of your bill. Phone companies use various labels, such as "regulatory fee" or "FCC recovery fee" to describe these charges, which are nothing more than part of the cost of the service. The charges are set by the companies themselves, not regulators, so the amount varies by company. Find these fees hidden in the fine print of ads and marketing materials.
Compare the cost of each service you want. After determining the basic and optional services that you want on your home phone line, take the time to compare costs between the different companies. Compare company A's caller ID charge with company B's caller ID charge, and then move to call waiting and so on.
Figure out if a "bundled" plan is right for you. Some plans offer local service in a package along with other services and features, such as long distance, Internet, caller ID, call waiting, and many more. If you're interested in purchasing bundled services, determine if these extras are right for you. Sometimes consumers could pay less buying the individual features they want separately. Check out the cost of all the "no-frills" plans without the extra features. Do not be talked into spending extra money for a "deal" that pushes you over your budget.
Some companies charge a fee for initiating service. This may also be called an activation fee, one-time fee, or start-up fee.
Change your service, keep your number. Consumers are entitled to keep their phone numbers when switching local service providers within the same local market, and now most can also move their home phone number to a wireless phone or an Internet calling service. This freedom is called "telephone number portability." The transition could take time—from hours to days, potentially leaving you without phone service for an extended period. Ask your provider how long the switch will take, and if you will be without phone service during this time.
Carefully read all forms and promotional materials. This includes all of the fine print, before signing up for telephone services so that you are aware of all the fees that could end up on your bill. Many providers have started adding new fees to phone bills, effectively increasing monthly rates above the advertised price.
Complaints about phone services are on the rise. A plan with a good price might end up more costly in the long run, if the service is poor or your bills are riddled with errors. When consumers have complaints, they also often find customer service departments lacking. Check out a company's record with the Better Business Bureau, your state utility commission, state attorney general and by asking your friends and co-workers. If you can, test customer service yourself by calling the customer service line for each company and check the wait time and hours of operation.
