Long distance choices: there's less fine print with anytime flat rates, but watch out.

AuthorKaelble, Steve
PositionCommunications - Brief Article

Scan the ads for long-distance service and it would seem like the process of choosing a carrier has become easier than it has been in a long time. Nearly everyone is boasting about a low per-minute rate, available all day, every day.

So has long distance become a commodity? Is picking a long-distance company for your business simply a matter of finding the lowest rate and signing up?

Not necessarily. The quality of customer service can vary dramatically even if the price is identical. And while long-distance plans typically contain a lot less fine print than they used to, buyers still must be on the lookout for charges that add to the per-minute rate.

Today's lower long-distance rates are a result of the competition that has blossomed following the breakup of AT&T and related moves that allow telephone customers to choose who provides their direct-dial long-distance service.

"Prior to this competition the prices for long distance were on the rise," observes Gary Smith, president of Midwest Telecom of America Inc., a Merrillville-based telecom provider that offers both local and long-distance voice and data services. "This was because there was no reason for the local telephone companies to drop their prices. Basically there was no competition, so as a monopoly usually does, they increased prices and made very little investment into their communications infrastructure for technology improvements."

Today, prices are declining. The segment of the Consumer Price Index linked to long-distance services has fallen about 15 percent in the past four years. During that time there has been a steady increase in the number of companies offering a flat, per-minute rate that's good 24/7, a practice sometimes called "postalization."

"When carriers started postalizing their rates--x cents per minute regardless of the time of day, day of week or mileage--it simplified it for the customer," says Dan Rohn, vice president of Opticom Operator Services, which among other things handles the one-plus long-distance service offerings of Carmel-based One Gall Communications.

The problem is that price-based competition has made the decision-making process seem deceptively simple, says Terry Ballantini, president and CEO of Fishers-based telecom provider Telliss LLC. "You really want to pick a long-distance company for a variety of reasons, not just price," he says. "Quality can be a big key. Customer service is a large factor. You have to have someone willing to listen...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT