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Shopping In The New Telecommunications
Marketplace
January 1998
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 brochure 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:
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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.
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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:
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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:
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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.
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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.
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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.
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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. Write to: Consumer Response Center, FTC, Washington, DC
20580.
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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.
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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.
This publication has been produced in cooperation with the
following organizations:
AT&T
Ameritech
Bell Atlantic
Consumer Federation of America
Federal Communications Commission
Federal Trade Commission
MCI
National Advertising Division, Council of
Better Business Bureaus
National Association of Regulatory Utilities
Commissioners
Telecommunications Research and Action Center
Tele-Consumer Hotline
Winstar Communications
Wisconsin Department of
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