Are you giving money to your phone company?

March 9, 2004--How would you even know? Can you make heads or tails Out of your bill? Can your accountant?

The phone is a simple device so why is our bills completely confusing? Well the answer is simple, so that we won't take the time to question the bills and just mail in the check. I call it the great American scam.

Phone bills would be easier to read and to compare with other companies if it were billed on a per minute basis along with the taxes. But the companies make it more confusing by adding several different factors, some of which border on being unethical.

So what do you look for when shopping for long distance? You might be surprised to learn that when shopping for long distance, you shouldn't base your decision on the rate per minute. You might be saying right now, isn't that the only variable to Shop for?

Absolutely not! Here I will explain some of the other areas you need to observe in looking for inexpensive service. With this list and your new found knowledge you will be properly armed to shop for the best rate.

1) FCC line charge also known as PICC fee, National Access Fee, LD Line Charge, Presubscribed Inter-exchange Carrier Charge, Presubscribed Line Charge, Regulatory Related Charge, FCC Primary Carrier 1st Line, or Carrier Line Charge. This is the charge to connect your local company to your long distance company. Often times the first residential line won't receive this charge but each subsequent one will each be charged. Business lines are almost always charged this fee starting with the first line but some long distance companies will start with the second line and on. Where does this charge apply to your situation? Also look at how much the charge is per line. This will vary from carrier to carrier. A rate that is a half a cent less per minute while paying $2/month more in PICC fees will require 400 minutes of talking to break even, even more for accounts with multiple lines.

2) USF surcharge, also known as Universal Service Fund Charge or Universal Service Charge, Carrier Universal Service Charge, Federal Universal Service Fund Surcharge. A lot of phone companies like to put the words federal somewhere in this fees' name so that you will think it is a tax. This is not a tax! The phone company keeps this money. The rate will vary from one company to another. This fee is a percentage of the long distance and international charges on your bill. For example, if you spend $300 a month and pay 4% more for the USF fee that alone is $12. At 4.5 cents a minute that's equivalent to an additional 267 minutes of talking.

3) Finally are the long distance charges. These are the rates that are advertised per the minute for all of your inter-lata calls. This is where everybody seems to be the most concerned about when they shop for long distance. Although important we are talking about a fraction of a penny difference between most plans. The other fees can easily eat this up and then some.

Here are the quick points for comparison shopping.

•Is there a monthly fee just to have the plan? Generally this is not good.
•Is there a PICC fee? If so, include it in your cost estimates (per line).
•What is the USF fee? This can vary from 7% to 15%. This alone can make or break a plans value.
•Lastly, per minute charge for the calls.

Add up all of these figures and you will have a true picture of what you are being charged. Only then can you begin to compare carriers' plans for what they really are.

Gruss and Associates, A Telecom Brokerage Agency has been helping residences and business alike since 1996 with there communication bills. To see how Gruss and Associates can help you please contact us.

Please visit our websites, http://www.grussassoc.com , http://www.t1priceusa.com



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