Is It Time to Update Your Phone Service to Get the Best Value for Your Dollar?

By Remar Sutton, DCU StreetWise Spokesperson

What phone services do you currently have? Local, wireless, long distance, international long distance? What phone services do you really need? There are lots of choices, but what services will fit you best? By carefully reviewing your needs and the options available, you can get the best value for your telephone dollar. Here is a brief review of the options.

Wireless Options

One of the biggest recent changes in telephone service is wireless number portability. What this means is that you can switch wireless carriers within the same geographic area and keep your existing wireless phone number. You can also switch your wired line phone number to a wireless phone. This possibility has a number of consumers not only looking for more economical wireless plans but also considering ditching their wired phone and going with wireless as their main, or only, phone service.

Here's a short list of things to look for when selecting a wireless service — switching or new.

Ask friends, co-workers, and family members about the service they use—what they like and don't like about it.
Check out the various plans offered. Compare coverage areas, long distance fees, roaming fees, costs for exceeding your minutes (including cost per minute), and early termination penalties.
What is the length of the contract? To get the best rates you may have to commit to a longer contract.
How easy is it to change plans? Can you go to a cheaper plan as well as a more expensive plan with the carrier you're considering? Will changing plans increase the length of your contract?

One drawback to switching carriers — you usually will have to buy a new phone even if the new company uses the same phone you currently have.

StreetWise Tip: Don't switch wireless carriers unless your existing contract is about to expire. Check your existing contract for the early termination penalty. It may be $150 or more.

Wired Options

Many local phone companies are offering discounts when you choose to bundle services—such as long distance and Internet access—with your local service. Some are offering unlimited local and long distance calling for a flat monthly fee.

Before signing up for any of these plans, ask yourself these questions:

Do these services meet my needs?
What are the savings compared with my current services?
Is it worth changing the services to get the savings?

For the unlimited local and long distance plans:

What is the available long distance calling area? Is it restricted to specific phone numbers, geographic areas, or times of day?
Do your current long distance charges plus the local bill regularly exceed the unlimited price including taxes and fees?

StreetWise Tip: As noted above, you can move your wired phone number to a wireless phone. I don't recommend this yet—a wired phone still offers the surest service for emergency calls. (But you might want to consider making long distance calls solely using your wireless plan or a pre-paid card or dial-around service that fits your needs.)

Long Distance

There are many choices for calling long distance—long distance carrier, wireless carrier, dial-around numbers and pre-paid phone cards.

Long distance carriers offer a variety of plans that may offer savings over "basic" rates. Plans vary from unlimited calls for a flat rate to low per minute rates with or without a monthly fee. Check the carriers' web sites (see the links in For More Information) for details about plans in your area.

More and more people are using their wireless phone for long distance calls. Many wireless plans include long distance with no additional fees. This can be a smart choice as long as you don't exceed your minutes.

For more information about dial-around number and pre-paid phone cards read the Remar's Review: Get the Most from Your Long Distance Dollars.

International Long Distance

Whether you call overseas frequently or only once or twice a year, there are ways to save. All the long distance options mentioned above apply to international calls. Dial-around numbers and pre-paid phone cards can offer significant savings if you shop carefully. Many long distance carriers offer international plans in addition to your regular plan. Wireless carriers also offer international plans. In some instances there is no monthly fee for the international plan, and the per minute fee can be very economical.

StreetWise Tip: Beware of surcharges for international long distance calls from your wired phone to a wireless phone in another country. This surcharge is in addition to the usual charges. This happens when you call a country in which the calling party pays for the call to a wireless phone. Read this FCC Consumer Alert for more details.

For More Information

These articles from the Federal Communications Commission (FCC) provide more detailed information on many issues related to getting phone service that's right for you.

Understanding Cell Phone Coverage Areas

Wireless Local Number Portability

Pre-Paid Phone Cards: What Consumers Should Know

Surcharges for International Calls to Wireless Phones

International Long Distance Calling

Cell phones: New rules, new choices from Consumer Reports

Regional and Long Distance Telephone Companies

AT&T

BellSouth

MCI

Qwest

SBC Communications

Sprint

Verizon

Wireless Companies

AT&T Wireless

Cingular Wireless

Nextel Communications

Sprint PCS

T-Mobile

Verizon Wireless

For other companies, type in their name in your favorite search engine or visit an online directory, such as Yahoo's Local Telephone Carriers, Long Distance Telephone Services, and Cellular Providers.

So, what do you think?

If you find this review helpful, please pass the word to your friends. Also email me with any comments or suggestions.

Remar Sutton

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updated July 2004