It's Your Call:
Shopping In The New Telecommunications Marketplace
For years, you’ve been able to choose your long distance com-pany. Depending on
where you live, you’ve also been able to choose your regional (local toll) telephone
service provider. Soon you may be able to select your local telephone company as well.
That’s because the Telecommunications Act of 1996 opens up the telephone industry to
wider competition.
What does this mean for you? Choices and, in some cases, lower prices. In the near
future, you may get offers to purchase local, regional, and long distance services from a
variety of companies. What’s more, for the first time in a long time, you may be able
to purchase your local, regional, and long distance phone service from the same company.
Greater competition and choice will lead to an array of services, from both
well-recognized companies and start-up businesses. Cable television companies, utility
companies, and Internet service providers (ISPs) may compete with telephone companies to
provide you with telephone and other communications services.
This document is designed to help you evaluate your use of telephone services, sort
through the offers you’re likely to receive, and make some sensible decisions.
Basic Services
Although you’re probably quite familiar with your local and long distance telephone services, you may not be aware that your phone bill may list charges for
three different types of telephone service: local, regional, and long distance.
- Local service covers calls within your local calling area—that part of your
regional calling area closest to home. Local calls generally are not itemized.
- Regional toll service (also called "local toll," "local long
distance," and "short haul long distance" service), covers calls to places
outside your local calling area, but generally not as far away as those covered by a long
distance toll service. (Check your White Pages directory for a map of your regional
calling area.) These calls are listed separately from local calls and are generally
itemized on your bill. They typically are billed at a per- minute rate (depending on the
time of day and distance), and are usually more expensive than local calls.
- Long distance toll service covers calls that travel outside your regional calling
area. You dial "1" + area code + 7-digit number for long distance toll calls.
Getting Started
Consider your current calling habits and costs for local, regional, and long
distance service by reviewing your telephone bills over the last three to six months. Also
ask yourself:
- What’s included in my basic local telephone service? What services cost extra? What
customized services do I currently have? What services do I need? Do I expect my needs to
change?
- Which company currently provides my local service? My regional toll service? My long
distance toll service?
- What are my calling patterns? Do I place most of my regional and long distance toll
calls to the same numbers during the same hours? How many of these calls do I make in the
evening and on weekends? How many calls do I make each month? How long do I talk?
- What do I pay now for local, regional, and long distance telephone service? Do I lease
or own my telephone equipment? What other communications services do I purchase, such as
Internet access, mobile or cellular phone, or paging service? How much do I spend on all
of my communications service?
- Am I on a calling plan with my regional or long distance company? Do I use a calling
card to place calls while away from home? What special savings do I have through my
calling plan or calling card, and what restrictions apply to them?
Getting a handle on details such as these will give you a more complete picture of your
needs and put you in a better position to comparison shop. You may decide to drop some
services and add others. You may want to go with one company for all your service needs,
or use different companies for local, regional, and long distance service.
Comparing Services
Base your comparisons on the desirability, quality, and cost of the services
available. Ask the following questions of each company that you’re considering:
- Is there a monthly charge, monthly minimum charge, or per-use charge for any service?
- Do I have to commit to use your company’s service for a certain period of time? If
so, is there a fee for canceling early?
- How does your company handle inquiries and complaints for each of the services you
provide? Is there a 24-hour customer service department? Are customer service calls
toll-free?
- How will I be billed? Will my statement be itemized?
- Who do I call for repairs? Billing problems?
- Do you offer discounts if I buy several services from your company? Can I customize a
package to fit my needs? Customized services may include cellular, paging, Internet access
and connections, fax, call waiting, call forwarding, call blocking, call trace, caller ID,
voice messaging, text telephone (TTY), inside wire maintenance, and a regional or a long
distance calling plan. What costs are involved with these products and services? Will I
need additional phone lines?
- Do you have special services for customers with vision, speech, or hearing problems? Is
there an extra charge for these services? If so, how much? Do I have an option to purchase
or lease the equipment?
- Are there discount telephone services available for low-income consumers, such as
discounts for establishing service, on monthly charges, or on long distance toll calls?
Dial “C” for Caution
Review all mail and telephone offers for communication services carefully. Be aware
of the following deceptive sales techniques:
- Slamming. This is the unauthorized switching of your phone service from one
telephone company to another. Federal law and the Federal Communications Commission’s
(FCC) rules and policies prohibit slamming and require carriers to verify a carrier
change. Some unscrupulous marketing techniques may cause you to switch services
unintentionally. If you fill out any "information," "contest," or
offer forms, read them carefully to determine whether completing and signing the form will
change your local, regional or long distance service to another company. And be very
careful about what you say to telemarketers that call to sell you telephone service. Get
an address and phone number. If you have any doubt about the offer, ask for it, and any
agreements, in writing.
- Huge discounts. Some companies may try to entice you to switch to their service
by offering "great discounts." These companies often compare their rates only to
the highest rates of well-known carriers and may charge a hidden monthly access fee.
- Introductory offers. Some plans may give you service at a discounted rate for a
limited time, then increase the rate unless you cancel. Remember, companies often charge a
fee for changes in service. Ask about all fees and cancellation policies before you sign
up. Get them in writing.
- Package deals. Some companies may offer discounts if you buy a package of
services. Consider your calling needs and patterns. It may be cheaper to buy only the
individual services you need.
- Fine print. Some companies include their minimum monthly fees or other charges in
the fine print of their promotional materials. Read the fine print before signing up for
or using a company’s service.
- Verification gimmicks. Some companies may call you to offer a great deal on one
service, but when you’re connected to a "verifier" to complete the sale,
the verifier may try to sell you additional services. Be sure you understand the deal
you’ve agreed to before you’re transferred to a verifier. Then, listen
carefully to the verifier to confirm that you’re buying only what you agreed to, and
nothing more.
Your Rights
You have rights when you shop for, select, and use a communication services company:
The right to choose the services you want and need, whether you
buy them separately or as a package. Resist high-pressure sales techniques to buy more
than you need.
The right to information so you can compare products and services
and make the best buying decision for your calling needs. The companies selling you
services can offer specific product information. Consumer groups also may be helpful.
Consider contacting:
- The Tele-Consumer Hotline, an
impartial and independent consumer education service offers free publications to address
your telecommunications-related concerns and issues. For free publications, send a
self-addressed stamped envelope toTele-Consumer Hotline, P.O. Box 27207, Washington, DC
20005.
- The Telecommunications Research and Action Center
(TRAC), a non-profit consumer organization devoted to educating consumers on their
telecommunication choices. You can request a publications list by sending a stamped,
self-addressed envelope to TRAC, P.O. Box 27279, Washington, DC 20005.
- The FCC’s National Call Center, which provides consumer
information on telephone-related issues, can be reached by calling 1-888-CALL-FCC
(1-888-225-5322). You can also visit the FCC’s
Consumer News.
- The right to say no to slamming. You may request a "carrier
freeze" or "carrier restriction" from your local telephone company to
prevent changes to your choice of local, regional, or long distance carriers unless you
contact the local phone company directly.
- The right to change your mind. You may want to switch to another carrier. Keep in
mind that you may be charged for a change in service or canceling your existing service.
If you have requested a carrier freeze, you will have to contact your local phone company
directly to change carriers.
Where to Complain
If you have a problem with your telephone service, try to resolve the issue with
your telephone company first. Check the front of your White Pages directory, or your bill,
for information on complaint procedures.
If complaining to your telephone company doesn’t work, consider contacting:
- Your state public utilities or public service commission about
local and regional telephone service. Check the government section of your phone book or
contact your local or state consumer office for the phone number and address of your state
regulatory commission.
- Your state Attorney General’s office about fraudulent or
deceptive practices. Most Attorney Generals’ offices have divisions that deal
primarily with consumer protection issues. Check the government section of your phone book
or contact your local or state consumer office for the phone number and address of your
state Attorney General’s office. You can also link to the websites of the Attorney
Generals’ offices of many states from the National
Association of Attorneys General’s website.
- The FCC about slamming or out-of-state long distance problems.
Write to: FCC, Common Carrier Bureau, Consumer Complaints, Mail Stop 1600A2, Washington,
DC 20554. Your letter should include your name; address; day-time telephone number; a
summary of your complaint; the names, addresses, and telephone numbers of all companies
involved with your complaint; the telephone number involved with your complaint, such as
your home or business telephone number; copies of disputed telephone bills and other
documents, such as promotional material or the form used to change your long distance
service; and the action you are requesting, such as a credit or refund for disputed
charges.
- The Federal Trade Commission (FTC)
about marketers who use the phone to commit unfair or deceptive marketing practices, such
as unscrupulous telemarketers. The FTC cannot intervene in individual disputes, but the
information you provide may indicate a pattern of possible law violations that could
require Commission action. Send your complaint
to: Consumer Response Center, FTC, Washington, DC 20580.
- The National Advertising Division (NAD) of the Council of Better
Business Bureaus (CBBB) about complaints concerning inaccurate or misleading national
advertisements for telecommunications products or services. NAD is the advertising
industry’s voluntary self-regulation program. It was designed by an alliance between
the advertising industry and the CBBB to review and monitor national advertising to ensure
its truthfulness and accuracy. You can register a complaint by writing to: National
Advertising Division, 845 Third Avenue, 17th Floor, New York, NY 10022.
- The National Fraud Information Center
(NFIC), a project of the National Consumers League, is a nonprofit organization that
operates a consumer hotline to provide information and referral for consumers who may want
to file fraud complaints. NFIC also sends appropriate information to the Federal Trade
Commission/National Association of Attorneys General Database. Call NFIC at
1-800-876-7060, 9 a.m. - 5:30 p.m. EST, Monday to Friday.
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