Are you giving money to your phone company?


(c) 2002 Michael LaPointe
    HorizonNet Communications

How would you even know? Can you make heads or 
tails Out of your bill? Can your accountant? 

The phone is a simple device so why are our bills 
totally confusing? 

So that we won't take the time to question 
anything and just pay them. 

If there were only a per minute charge along 
with the taxes it would be a lot easier to 
compare carriers and choose the best one.
 
What do you look at when shopping for 
long distance? The per minute rate? 
Isn't that the only variable to Shop for? 

Absolutely not! Here I will explain some of the 
other areas where you can shop for cheaper service.

Armed with this knowledge you can decide for your 
self if there is a better deal out there.

1) FCC line charge also known as PICC fee, 
National Access Fee, LD Line Charge, Presubscribed 
Interexchange Carrier Charge, Presubscribed Line 
Charge, Regulatory Related Charge, FCC Primary 
Carrier 1st Line, or Carrier Line Charge.

This is the charge to connect your local company 
to your long distance company. Often times the first 
residential line won't receive this charge but 
each subsequent one will each be charged. 

Business lines are almost always charged this fee
starting with the first line but some long distance 
companies will start with the second line and on.

Look where this charge applies to your situation. 
Also look at how much the charge is per line. 
This will vary from carrier to carrier. 

Half a cent less per minute while paying $2 more 
in PICC fees will require 400 minutes of talking 
to break even. More for accounts with multiple lines.

2) USF surcharge, also known as Universal Service 
Fund Charge or Universal Service Charge, Carrier 
Universal Service Charge, Federal Universal 
Service Fund Surcharge.

A lot of phone companies like to put the words 
federal somewhere in this fees' name so that you 
will think it is a tax. This is not a tax! 

The phone company keeps this money. 

The rate will vary from one company to another.

It is a percentage of the long distance and 
international charges on your bill. If you spend 
$300 a month and pay 4% more for the USF fee that 
alone is $12. At 4.5 cents a minute that's equivalent 
to an additional 267 minutes of talking.

3) Last are the long distance charges. The per 
minute charges for all of your interlata calls. 
This is were everybody seems to be concerned when 
they shop for long distance. 

Although important we are talking about a fraction 
of a penny difference between most plans. The 
other fees can easily eat this up and then some.

Here are the quick points for comparison shopping. 

- Is there a monthly fee just to have the plan? 
  Generally this is not good. 

- Is there a PICC fee? If so, include it in your 
  cost estimates (per line).

- What is the USF fee? This can vary from 7% to 15%. 
  This alone can make or brake a plans value.

- Lastly, the per minute charges for the calls. 

Add up all of these figures and you will have a true 
picture of what you are being charged. Only then can 
you begin to compare carriers' plans for what they 
really are. 

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About the Author:

Michael LaPointe Founder of HorizonNet Communications
is an entrepreneur participating in the local and 
internet business scene since 1996. 
contact: mike@allLongdistance.com
http://www.allLongdistance.com