Long Distance Phone Services: Other Service Options

What About "All You Can Eat" Plans?

Many long distance companies are now offering unlimited long distance calls for a set fee each month (a.k.a. "All You Can Call,"  "All You Can Eat").  However, as with most wonderfully appealing offers, these long distance plans are not a great deal for everyone.  Why? 

• Some unlimited plans only include inter-state long distance calls.  If most of your friends and family are in the same state as you, then these plans would not benefit you.  Be sure to clarify if the advertised price of the plan includes both inter-state and intra-state calls.

• While an unlimited long distance plan may sound attractive, it is important to be practical about the amount of long distance minutes you will truly use in a month.  Look over your long distance bills from the last three months and calculate the effective per-minute rate. See if it is competitive.

• When choosing an all-you-can-eat plan, you should still be cautious.  As with all calling plans, these plans will cost more than advertised once taxes and fees are added.  Also, some of these plans require that you subscribe to a "bundle" of services such as call waiting, caller ID and voice mail—some of which you may not want. Be sure to include the cost of paying for services you are not interested in when you calculate which plan is truly a better deal for you.

Make Your Calls over the Internet

VoIP ("Voice over Internet Protocol") is a technology that enables consumers to make local and long distance phone calls via the Internet using a broadband connection.  Currently, there are two basic types of VoIP services:  the kind that only lets you connect to other people who are also using the same service on the Internet; and the type that lets you make calls to, and receive calls from, anyone on the phone network.

VoIP requires a broadband connection, which is an additional cost.  With some VoIP services users make calls from their computer or a VoIP phone. Other types of VoIP service enable consumers to make calls using their regular telephone connected to an adapter. 

Pre-paid phone cards (also called pre-paid "calling cards" and "telecards") 

With a pre-paid phone card, you pay in advance for long distance and/or international calls.  Cards are usually sold in dollar amounts ($5, $10, $20, etc) or by blocks of minutes (10, 30, 60, etc). Callers dial a toll-free access number and enter a "pin" number to make a call.  Pre-paid phone cards are easy to find at convenience stores and other retailers, through vending machines, over the Internet, and as "fundraisers" for charities. 

The most common problems consumers have with pre-paid phone calls are rates higher than advertised and hidden charges; issuers going out of business, leaving consumers with worthless cards; poor call quality and busy signals; and cards expiring without the consumer's knowledge.