The cheapest long distance carriers have high quality services and lots of great features, too
Are you looking at your phone bill? Thinking about swiching to a discount long distance carrier? Why not switch when you can get quality connections, great service, and very cheap US and international phone rates?
This article offers practical suggestions and options to help you get started. To learn more and sign up online, see my recommended phone carriers and brief reviews on the right.
How to choose a discount long distance carrier
If your home or office is within the United States you should be paying much less than 5¢ per minute for interstate calls. You can use a quality, discount carrier with rates under 3¢ per minute. In fact, you should be paying less than 5¢ per minute for most international calls.
You don't have to sacrifice quality or customer support either. All the carriers that I have recommend provide outstanding services and support. If you want to skip straight to the details, see my discount long distance comparison.
Here are some practical tips for choosing a long distance carrier.
Billing increments - smaller is better
The best discount carriers use small billing increments (6 seconds or less). Carriers with 6 second billing increments round the length of each call up to the nearest 6 seconds to figure out the charge. Other carriers advertise low rates, but they round the length of each call to the nearest minute (so you are paying extra for every call). Six seconds is good, because you are only paying for the time you use. One second is even better!
Monthly fees - to pay or not to pay
Most discount carriers don't charge any monthly fees for their basic service, but you need to keep your eyes on the details. Some discount carriers have introduced "Network Access Charges," which is just another name for a monthly fee.
Should you pay a monthly fee or "network access charge?" That depends. If the "per minute" rate is super low and you are a high volume caller, then the savings will more than compensate for the monthly fee. But if you are a low volume caller (less than 500 minutes per month), then you'll be better off accepting a slightly higher "per minute" rate with no fees.
"Administration fees" - required or not
There are two federally required fees that everyone pays on top of the basic long distance charges: a three percent federal tax and the USF (Universal Service Fund) fee. Businesses also pay a PICC fee if they have extra lines. Carriers are not allowed to inflate these fees, but they ARE allowed to charge an "administrative fee" (to cover the cost of collecting the other fees...). Most of the discount long distance carriers don't charge administrative fees, but some do. In my opinion, administrative fees are just another way of getting customers to pay more than they realize-- and these fees really add up for high volume users, because they are a percentage of the total bill.
Extra features - toll free numbers, etc
The best discount long distance carriers don't just lower their rates, they give you extra features. For example, all the carriers featured here can give you a personal or business toll free number for a small fee, but only (3U Telecom) lets you forward your toll free number to any phone or mobile phone number that you choose in the USA or worldwide.
Billing options
Do you mind having your credit card charged automatically each month, or do you prefer to write a check for your bill (or go online and authorize the charge personally)? Do you prefer to get a paper billing statement in the mail, or are you willing to view the information online instead? Generally speaking, you will save more if you are willing to pay by credit card (or bank transfer) and view your call details online.
My comparison
Read my long distance comparison to compare costs, features, and other factors for four respected discount carriers. The chart includes the key details mentioned above plus sample rates and short reviews for each of the carriers. I've also written longer reviews that you can read before making a choice.
Two carriers that I highly recommend are:
Pioneer Telephone
Pioneer is known for having extremely cheap rates AND great customer service. I chose Pioneer as the "Best Overall" carrier in the comparison.
Read my Pioneer review here
3U Telecom
3U Telecom has the cheapest international rates of the discount carriers in my comparison. The US rates are also cheap, and you get good customer service, great terms and no fees.
Read my 3U Telecom review here
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