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Featured Publication
TeleTips: Twice a year, TRAC produces the TeleTips Residential Long Distance Comparison Chart, the only independent source for information on residential long distance calling plans.

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Top Ways to Save on Your Long Distance Bill

Choosing a long distance carrier and calling plan can be a daunting task for even the most market-wise consumer. Every day, we are exposed to direct mail, telemarketing, and television advertising campaigns from long distance carriers, with each company claiming to offer the best available rates and savings. How can consumers make informed decisions with so many different factors to consider? We at the Telecommunications Research and Action Center (TRAC) suggest that you use Tele-Tips, this thorough yet simple reference tool for the thrifty consumer.

No matter what changes occur in the market, the most important questions have always remained: "Which long distance company is the cheapest?" and "How do I know which company or plan is best for me?" With an increasing number of long distance carriers offering new features and services each day, just choosing a long distance provider isn't always enough. To be certain you are getting the best rates, you must also be sure you are enrolled in the right calling plan. These plans are constantly changing, however, and a plan offered one year may be gone the next. A plan that is a carrier's cheapest one year, can suddenly become its most expensive. You can always save money on your long distance phone bill, and TRAC's Tele-Tips Residential Long Distance Comparison Chart is the best and easiest way to help you find those savings.

Saving money on your long distance bill can be done by periodically conducting long distance check-ups. How frequently you should do this depends on how much money you typically spend on long distance. The higher your phone bill, the more often you should conduct a check-up -- though it's generally advisable to do at least once per year. Recommended times to review your long distance bills are when you change your residence or calling patterns.

Conducting a check-up is easy. The first step is to call your carrier's toll-free customer service number and ask if you're on their least expensive calling plan. Make sure that when they look at your records, they examine a typical calling month. If you decide you are not satisfied with your current situation, this is a great time to shop around.

1. Determine Your Calling Patterns. Take a look at your long distance bills for the past three months. Determine when you make the greatest number of calls, and the average length of your conversations. Determine whether there is a pattern to your calls, such as frequently dialing the same number or area code, or making the bulk of your calls during a certain time of day. Recognizing such patterns will also help you determine which category you fit into on TRAC's comparison chart.

2. Find Your Category on the Chart. TRAC has created three typical calling baskets that are intended to reflect calling patterns based on the time of day you most often make calls. For example, if you make your calls throughout the day, evening, night, and weekend, you would be considered an "Average Daily User." Find the calling pattern that best resembles the time and money you spend on the phone in a typical month. You can calculate these numbers respectively by totalling either the number of minutes you called or the amount of money you spent over three months, and dividing that number by three (the number will be your monthly average). Use this information to determine which column most closely reflects your calling patterns.

3. Compare Plans. Now that you have found your category and column, look for the least expensive calling plans. Then, read each plan's description to ensure that you meet the requirements to receive discounted rates, and also to ensure that the plan includes all the features and services you desire.

4. Research the Plans. Once you are interested in some plans, follow-up with additional research. Call the carriers to confirm that these would, indeed, be the best plans for you, that the rates are still the same, and the features and services you want are still offered with those calling plans. Remember, plans change frequently and competition results in even more frequent rate and service changes. 

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