Understanding The Differences In Long Distance Providers

By Author: James Diorio
Total Articles: 2
Comment this article

True story: When the Iron Curtain started loosening in the 1990s, and another wave of Soviet emigrés hit the U.S., the inevitable human interest stories began popping up. One of the most interesting concerned the inability of a considerable fraction of new arrivals to adjust to, of all things, American supermarkets. A few reports claimed that some Soviet emigrés returned to the USSR because they could not choose among the hundreds of kinds of breakfast cereal.

This side of the curtain
Westerners, Americans in particular, are not afraid of choice or choices. Looking at the incredible proliferation of long distance providers and calling plans, some people may become just a bit overwhelmed. However, in America we understand that the reason for such abundant choice is driven by both corporate competition and consumers' desires. And, coming full circle in a rather odd way, we note that one thing consumers desire - more than anything else - is choice.

The sheer number of long distance carriers and plans may seem daunting, but there are really only a handful of hard and fast measures by which one can compare ...
... the providers. These measures are easy enough to locate, quantify and compare, but the final decision will hinge on the unique, completely individualized way that these hard measures stack up for each company or individual, as well as other influences that economists often call soft factors. The importance one places on one consideration over another, or the resistance one may have to one or another feature, hard or soft or both, will combine to make each decision unique.

The first distinctions
The way you set about comparing long distance providers begins with what you are doing, that is, whether you are seeking a carrier for your home or your business. These two paths overlap and closely parallel each other today, although there are still enough differences to change your search parameters based on the target, home or business use. One of the major differences between home and business shopping for phone plans is that your business will get a better quality of sales pitch, of course, since it represents a larger potential customer.

Another primary distinction in this day and age is which phone technology is to be used. Will it be standard landlines, VoIP (Voice over Internet Protocol), cellular or some mix of these? Some individuals, as well as some small businesses, have consolidated all their phone operations in the cellular domain, because of the continuing price decline for this technology. Regardless of the choice you do make, remember that the pace of progress is accelerating, not declining, and you must revisit all technology-related areas of your home and company at least twice a year. For businesses that want to stay on the leading edge, of course, it should be at least quarterly, and the fact is that corporate IT executives read daily about advances in communications, computing and other infrastructure.

Due to length limitations and a desire to provide needed focus, we will leave VoIP and cellular-for-business phone plans for another article. We will focus instead on the differences among the leading landline long distance providers. The same sort of competitiveness, technological advances and infrastructure issues that come up here will be found in any comprehensive articles on those subjects, too.

Major providers, advertised rates
There are literally hundreds, if not thousands, of local and regional long distance providers, and a declining number as they achieve national and international size and reach. In addition to the old line telecoms, such as AT&T and the Baby Cells, a huge number of telecommunications firms have exploded into existence over the last 20+ years. Although there are still some fly-by-night firms and fast-buck operators, a number of the new telecoms have established themselves as effective and profitable over the years.

ECG, PowerNetGlobal, 3U, Unitel, AmeriCom, CoVista, TCI, Pioneer Telephone and Opex are among the several dozen major providers that seem to end up playing musical ratings on various Top Ten lists of long distance providers. All have their fans, and some people will undoubtedly point to various other firms as better than all of ‘em. However, for an article such as this, a general comparison of the differences among such firms, looking at the top dozen or two will work quite well.

All carriers will advertise a per minute charge, ranging from about 2 to 5 cents, but you should remember that this is their standard state-to-state rate. Their in-state and international rates will usually be printed a bit smaller or referred to elsewhere. A few providers offer a rate as low as 1.9¢ when calling their other customers, while others may require online billing and payment to secure the lowest advertised rate. Always keep an eye open for other requirements that will affect your rate.

Other fees add up quickly
Some providers will charge a monthly fee, but most offer ways around it and these monthly or statement fees are waived if the billing exceeds, say, $20, and/or if you use the online billing/payment feature. Another important consideration, of course, is the billing time increment and the minimum call length. At the high end, some carriers have the 60/60 plan, meaning every partial minute is charged as a minute and one minute is the minimum call length. Other plans range from 6/18 and 6/6 (the majority fall in these categories), while one company has made its reputation on one-second billing with a 1/1 plan unique to the industry.

Another important consideration involves time, which has a direct and storied relationship with money (time is money). This, of course, involves the average amount of wait time for customer service. In recent rankings at a cross-section of sites, these times ranged from under a minute to 1, 3 (majority of providers) and even 10 minutes. For businesses, this is even more important than it is for individual consumers, for whom it is still quite important.

The big picture
Only by considering how your home or business really, truly works (or doesn't work) will you be able to arrive at a plan that makes sense and achieves the goals you have set for it. You can balance several goals - saving money, improving efficiency, archiving messages, etc. - at the same time, although you will likely want to concentrate on one, perhaps two, of the most important things. It is unlikely that you will get everything you want, at the level of excellence you expect, from your calling plan or long distance provider. Be realistic, but also stay informed.

Because prices change so quickly, service levels change over time and communications equipment goes obsolete faster than ever, it is important to stay abreast of these aspects of your home or business calling plan(s). You will cause more problems than a small savings is worth if you jump around all the time among continuously changing phone plans. Make your best plan as you forecast your needs over the next quarter (for business) or year (for home) and, unless something drastic happens in the time being, wait to jump ship until your next review point.

The summary (for now)
If you are reading this article as preparation for a first major phone strategy change, expand your research from this general overview to the specific long distance provider comparison shopping pages, scores of which are awaiting your click out there in cyberspace. In addition to the cold, hard numbers, consider some of the companies' soft factors, such as

company background and reputation,

Dun & Bradstreet and Better Business Bureau reports or complaints,

your relationship with sales and/or customer service personnel,

simplicity vs. complexity of the contract (if one is required) and

openness of the provider to discuss special, tailored account features that you need.

The main difference among long distance providers, unfortunately, are ones that may not be apparent during the shopping phase, and turn up down the line a bit. This makes getting references and checking a company's background even more important than ever. Talk to your colleagues, friends and acquaintances. Read as much as you can, and never hesitate to ask the important questions. Understanding the differences among long distance providers will take a little time, but it is time well spent when you recall how vital your phone - and the dependable, cost-effective communication it represents - is to you and your business.

Dial 800 Communications is a company that specializes in Marketing Optimization. Specializing in RapidRecall vanity numbers and call tracking that are the best in the industry based on your marketing goals, requirements and budget.