Shopping for Phone Service

Today telephone service comes with lots of choices. A wealth of options means savings for many consumers, and choices tailored to your needs. But many consumers also find the choices confusing.

The Department of Public Service has prepared this guide to help consumers shop for telephone service. It answers questions consumers most frequently ask aout how phone service has changed and how to choose the phone plan that's right for you.

The guide contains information on these important topics:

Definitions: Basic Service, In-State toll, Long Distance

Be Informed: About Instate & Long Distance, Local Service, Your Rights

Sorting the Extras: Like Caller ID, Wire Maintenence, Dial Around or 10-10 Numbers

Sorting the Surcharges: Understanding Taxes & Fees on Your Phone Bill

Away from Home: Tips for when you are away

A shopping comparison chart to help you compare offers from different companies. ( pdf - 61k)

**It's not "the phone company" -- now it's many phone companies.**

Whether you realize it or not, most people have at least three different kinds of phone service. Making good choices starts with understanding the differences.

Basic Local Service

This provides your dial tone, local calls, your ability to receive calls, your listing in directory assistance, and many optional services such as Caller ID. An increasing number of Vermonters can now choose among competitors to provide their local service.

The DPS website includes a list of local service providers that are believed to be actively marketing in Vermont. The Public Service Board lists all local service providers licensed to do business in Vermont. Note: Not all companies that have permission to operate in Vermont have started to offer service. Make sure you ask the company representative if they provide service in Vermont.

In-State Toll Service

Sometimes called local toll or intra-LATA toll, this is service within Vermont but outside your local calling area. Calls are usually itemized on your bill. Through-out the state, consumers have many choices of in-state toll companies.

Click here for the Public Service Board's listing of companies licensed to provide in-state toll service in Vermont. Ask whichever of these companies you contact whether it serves Vermont, too.

Long Distance

These are your out-of-state and international calls. Many companies vie for customers with competing prices, frequent flyer miles, and incentives to switch. There is probably a package to match your calling habits. Some companies offer packages that include in-state toll and long distance, but the rates may
differ. Click here for long-distance tips that can help you identify a call plan that best meets your calling patterns.

For price comparisons of long distance plans, click here. This link will take you to an independent web site.

Be informed: Shopping for phone service

The phone rings and it's a telemarketer urging you to change your phone service....You open your mail to find an offer to change your phone service, complete with a check and promise of frequent flyer miles...There's an ad in the newspaper or on-line for long distance that seems less than what you've been paying.....

Here are some things to keep in mind when considering a change of in-state toll and long-distance service:

In-state and inter-state toll service rates often differ. Ask about both rates.
Low per-minute rates seem great, but when comparing different plans figure in any fees and surcharges companies may add. These extras often differ from company to company.
You may be able to choose a toll company by calling your local phone company, but you must call the toll company directly to get a discounted calling plan.
If you move your local service always call your toll company directly to be sure you remain on your old calling plan. Remember: these are not necessarily the same companies anymore.
International calls are not usually included in your domestic long distance rate. Generally you must sign up for an international call plan to get the discounted rates.
If you need a calling card to make calls from out of town, be sure to inquire about the rates and surcharges. A low per-minute rate but a high per-call surcharge may result in high cost. Some companies specialize only in calling cards and may offer more favorable rates than those bundled with basic toll service.
The independent Web sites http://www.abelltolls.com/ and http://www.trac.org/WebPricer provide on-line price comparisons of long distance service.
Be sure the number your computer dials for access to your ISP is local to avoid large toll charges for your time on the Internet. Ensure your computer is set up to dial the local access number.
Some companies offer less expensive toll or long distance plans that are available only through on-line subscription.

Local Service

More and more Vermont residents may now choose a local telephone company to provide their basic dial tone, a choice already available to many Vermont businesses. Lcoal competition is primarily available in Verizon’s service territory at this time, competition may expand throughout the state in the future.

Before switching your local service, compare local calling areas and consider these questions:

What is your local calling area? Competitors must offer local calling at least the same as the company traditionally serving your area. They may offer larger, but not smaller, calling areas. This may be especially important if you make calls to an Internet Service Provider.
How much does a local call cost? Compare what you actually pay per month including Local Measured Service or LMS to any flat rate offers.

Most Vermont residents pay by the minute for local calls through Local Measured Service, or LMS, at a rate that varies depending upon the company and the time of day. LMS charges should be no more than a few cents per minute and are not usually itemized. Some companies offer local usage packages that include a block of local calling. Such packages can reduce the bills of people who make a lot of local calls. If you make few local calls, however, a basic local package will probably cost you less. Some companies offer packages without LMS charges, although the monthly charge is generally higher.

Vermont guarantees certain basic protections to telephone consumers. You have a right to:

A clear and understandable description at the time of the offer of any offer to sell you telephone service.
A review of the lowest cost alternatives available to you.
A written confirmation–in plain language–of any order, including rates and terms, no later than your first bill. You also have the right to cancel service, without penalty, within 15 days of receiving written confirmation.
Annual notice of service and rate information upon request.
At least 15 days notice of rate increases on your in-state services.
Freedom from unfair or deceptive practices.
Itemized billing.
Courteous, competent, and timely customer service.
Response to your complaint within seven business days.
Access to local service as long as your local bill is paid. That is, you cannot be disconnected from local service for failing to pay toll charges (although you are still legally obligated to pay your bills and failure to do so may affect your credit and result in disconnection of your toll service).

Check out "Your Rights as a Consumer" for more information.

Sorting out the extras

Many optional services are available. Understanding these will help you decide whether their benefits are worth the extra cost.

Caller ID

Identifies an incoming call by phone number, or by name and phone number. Caller ID requires a display or a phone equipped with this feature. Caller ID units can be purchased at an electronics store or may be rented or sold by the company. Be aware, however, that caller ID is not fool-proof. Many telemarketers’ numbers, people calling from outside your local area, and those who have Caller ID block will show as “out of area” or “private.” You can also block your own number from transmission on a per-call or per-line basis. People who can demonstrate a safety concern are eligible for Caller ID blocking at no charge upon request to their local phone company.

The FCC has more information about Caller ID.

Wire Maintenance Plans

Your phone company is responsible for the wiring up to the "network interface device" or NID, usually outside your home. Wire maintenance plans cover the cost of repairs if there is a problem with the wiring inside your house, and generally cost $3-$4 per month. This insurance may be helpful in the unlikely event that you need an expensive inside wiring repair. Consumer advocates say that, on average, repairs to inside wiring are needed every 14–30 years, depending upon the condition of your home. Renters probably don't need wire maintenance because generally landlords are responsible for wiring. If you do not have a wire maintenance plan and have a repair problem, check the front of your phone book for information on how to test your own phones before calling in a technician. Finally, if you do need service, your phone company isn't your only repair option. You may also contact an independent service company.

Dial-Around or 10-10 Numbers

Dialing 10-10 plus a three-digit number connects you to a specific long distance company. The charges appear on your local bill. Dial-around can be a way for savvy shoppers to save money, but beware the fine print. Check for per call minimum usage charges, monthly surcharges, and hidden fees.

The website, A Bell Tolls contains more information and price comparisons of 10-10 plans.

Sorting out the surcharges

Telephone companies are required to apply some fees and taxes to customer bills. Other add-ons that look like they are required are really optional charges companies have added at their own discretion.

The following are true taxes and governmentally-sanctioned fees:

Federal Tax or Federal Excise Tax (goes to the US Treasury).
Vermont Universal Service Fund Surcharge (pays for Enhanced 911, the Vermont Telecommunications Relay, Vermont Equipment Distribution Program and the Lifeline telehone discount program).
Vermont State and Local Taxes.
Subscriber Line Charge, End User Common Line Charge or Federal Access Charge ($6.50–$9.20 federally-approved charge that helps local phone companies recover facilities costs).

For more information, look at the FCC fact sheet: Federal, State and Local Taxes on Your Telephone Bill

When you are away from home.

Calls placed from away from home can be expensive. Here are some tips that may save you money.

Check the calling rates at hotel phones and payphones before using them.
Consider buying a pre-paid calling card, or ask your telephone company for a calling card (telephone credit card). The card will include a toll-free access number. Follow dialing directions carefully. These calls are billed at rates higher than your regular toll call plan. Check for rates and conditions.
If you travel a lot, a wireless phone may be a good option. Be sure to check on roaming and long distance fees in your wireless plan.

The FCC Fact Sheet offers more consumer information about payphone charges and other public telephone services.