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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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