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Billing
Issues
Calling plans vary widely and the billing structures can be very
confusing. Charges may be by the full minute or by the tenth
of a minute (six seconds) and there may be a minimum call length,
i.e., 3/10 of a minute. Rates may be based on a number of factors,
some of which are listed below.
Variable rates
You will be billed based on the time of day or the area called.
This can be a bargain if you are able to plan your calls carefully.
Fixed rate
Calls are billed at the same rate regardless of the time of day
or where you are calling. This can be a bargain if you call
at different times of day or make calls to many different areas.
Tenth of a minute (6 second) billing
Calls are billed in 6 second increments, not full minutes. Some
plans have a minimum call duration, after which 6 second billing
kicks in. This can be an ideal plan if you make many short
calls or receive a lot of toll-free "wrong number" calls.
- For a 3 second call you might pay for 18 or 30 seconds.
- For a 65 second call you would pay for 66 seconds.
Full minute billing
Calls are billed by the full minute at a rate that may be lower
than with a 6 second billing plan. This can be advantageous
if you make a lot of long calls.
- For a 3 second call you would pay for a full minute.
- For a 65 second call you would pay for two full minutes.
Minimum per-call billing
Calls are billed at a low rate, however, there is a minimum length
call. The per-minute rate may be low but this can be offset
by the high minimum rate. This type of plan may be useful
if you make a lot of very long calls but it can become expensive
if you are not careful. Consider a plan that charges 5 cents
a minute with a 20 minute minimum:
- A call lasting 10 minutes or 20 minutes will cost $1.00.
- A call lasting 25 minutes will cost $1.25.
- A 10 second call to a wrong number or an answering machine
will cost $1.00.
Graduated rates
You start the plan at a moderately good rate. Your rate
drops in stages over a period of time until it reaches a very
good level. This can be a bargain if you stay with the company
for a period of time, however, it can make you reluctant to switch
plans for fear of losing your favorable rate.
Charity plans
The long distance carrier promises to donate a percentage of
your monthly charges to support an organization in which you have
an interest. The carrier may have their own network or they
may be re-selling the services of another company. You may
want to check with other users to see how they like their service
before signing up. You may also want to learn just how much
money is actually going to the organization.
Monthly fees
Most carriers charge a fixed fee or a minimum usage fee in addition
to your usage charges. These charges offset the costs of
processing monthly bills. Given today's very low rates, this
concept is certainly reasonable but the fees some companies charge
may not be.
- Some carriers charge a monthly fee, regardless of usage. Rates
can be as high as $7.95 per month. A high monthly fee may
offset any monthly savings the carrier may offer.
- Some carriers charge a minimum usage fees if your call usage
is below a given level to cover their billing costs. The threshold
is often low, i.e., $15-20, and the fee is often reasonable,
$2-3.
- If you have toll-free service your carrier may charge a separate
administrative fee. Some charge a single fee regardless
of the number of toll-free numbers while others charge per number.
Taxes and other fees
The FCC requires phone companies and long distance carriers to
collect a bewildering array of fees and taxes. If you have
more than one carrier each one may collect these fees. Accounts
under a business name are often charged higher rates than comparable
residential accounts.
- For years the FCC did not permit these charges to be listed
individually on your bill; now they do. The nature of these
charges is far too complex, and sometimes too controversial,
to discuss here.
Multiple lines
You may choose only one carrier per line. If you have multiple
lines you may choose any carrier for any line, however, it is
advisable to use one carrier for all services on one account,
otherwise you could wind up paying separate monthly charges for
long distance, local toll calls, and toll-free service.
- If you have multiple lines any monthly fees should apply to
all lines on the account, not to each line.
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