Remember the television show "Laugh In", and Lily Tomlin as the party line operator using a nasal voice to say, "One ringy ding ding...... two ringy ding dings...."
What do you remember about the home you grew up in and the telephone? Did you have the crank style.... And wasn't the telephone usually in the kitchen....and in the kitchen only? Well, times have changed!
In the new millennium, there are cell phones, headsets, and Personal Communication Services; caller I.D., call waiting, 800 numbers and 900 numbers; blocking, slamming and cramming.
There are more than 600 companies in the long distance market. Each company offers an array of plans and rates. Three large companies (AT&T, MCI, and Sprint) hold 90 percent of the long distance market.
Federal laws have opened up the telephone industry to competition. Consumers currently have several different companies they can choose from for long distance service. The same will soon be true for local telephone service. The Illinois Commerce Commission reports that competition for local service is already happening in some of the urban areas such as Chicago, Peoria, Springfield, and Metro East St. Louis. Eventually all phone customers may have the opportunity to choose their local provider. Some long distance phone service companies have already announced they plan to move into the local service market.
Making Good Telephone Choices
Take Time to Make the Right Choice
Treat your telephone service like most large purchases: be savvy and fully weigh your options. If you are an "average" consumer, your monthly bills for local, toll, and long distance service can add up to hundreds of dollars every year.
Get the Facts
Study your present telephone bill. To make a well-informed decision, gather as much information as possible. Determine whether there are monthly access fees and monthly minimum requirements. Don't hesitate to call the company and ask if there are any other lower cost plans or options you don't know about. If you decide you want to inquire about other companies, contact the company and state clearly that you are interested only in receiving written information. Review the materials before you will make a decision
Read the Fine Print
It is vital that you understand what you are agreeing to. "Slick" marketers and advertisers may promise low rates that seem too good to be true. In many cases, they are. Be sure to read the asterisks and disclaimers; this is where the real facts can be found.
Check with Friends
A great way to gather information is through recommendations from your friends. Some may be able to steer you away from companies that they have had trouble with in the past. Others may be able to direct you to companies with whom they have had positive experiences.
Watch Out for Slamming
Thousands of consumers every year are slammed. The company providing their phone service is switched without their knowledge or consent. Don't let this happen to you! As the sales pitches get more complicated, so will the slamming opportunities. For example, you may think you are signing up for a raffle or other free offer when you are unwittingly agreeing to change your service provider. Consumers are able to choose their long distance company as well as the company they will use for local and toll calls. Toll calls are made to numbers outside your local calling area that are handled by your local company. In Illinois, slamming was the number #1 and #2 consumer complaint in the Office of Attorney General in 1997 and 1998, respectively.
Consider a PIC Selection Freeze
For your protection and to ensure that your long distance telephone service is not switched without your knowledge, consider requesting a "PIC Selection Freeze." A PIC Selection Freeze is a written document instructing your local telephone company (e.g., Ameritech, GTE, Illinois Consolidated, etc.) not to change your long distance service unless authorized by you. The actual form can be obtained from your long distance telephone company. The one disadvantage of having a PIC Selection Freeze on your line is that it requires another letter written by you to remove the Freeze if you decide you want to change your long distance company in the future.
Watch Out for Cramming
Cramming happens when a company adds additional services such as call waiting, three-way calling, redial, etc. that you have not authorized. This is the newest scam related to phone service. It was the #5 consumer complaint in the Office of the Illinois Attorney General in 1998.
Know Your Low-rate Calling Times
The traditional basic time period terms like daytime, evening or night rates are no longer used in the telephone industry. Time periods now vary from plan to plan. Carriers now use different ways to identify when they offer their lowest rates. For most companies, this will be in the "night/weekend time" period. For others it may be in their "off-peak" time period. Becoming familiar with your calling plan's time periods is an easy step toward saving money. If you are unsure, call your carrier's toll-free customer service number.
Check Your Long Distance Carrier
The long distance carrier's name will be listed on your bill, which you should examine every month. You can also check this by calling a toll free number (1-700-555-4141) from your home phone. A recording will state which carrier is connected to your line. If your telephone company is switched improperly, call your original carrier and arrange to be switched back immediately at no charge.
Compare Various Calling Cards
If you make long distance calls when you're on the road, it's worth comparing various carriers for their calling-card charges. As a rule, you'll get the best rates away from home if you use a calling card issued by a long distance carrier. To use the card, you dial the carrier's 1-800 or digit access number before the number you're calling. Most calling card rates are higher than the standard long distance rate you would be charged when calling from your home. In addition, most calling cards have a surcharge as well as the minute rate charge for each call.
Do You Need A Cellular Phone?
Before going out and signing up for cell service, ask yourself these questions. For what purpose or why do I want cell service? How much am I willing to pay to use cell phone service? Shopping for a cell phone service is much like shopping for long distance service. When you have analyzed your needs, look for a service plan that best meets your needs. The same company or plan will not be the best for everyone. Read all cell phone contracts carefully. Some contracts are hard to escape from and you may have to pay a hefty termination fee if you decide to discontinue service before the contract runs out. Analyze plans carefully before automatically renewing.
Common Terms You May Need To Know
Carrier Line Charge – A monthly flat fee based on the number of telephone lines subscribed to each carrier for long distance service. The purpose of the fee is to help cover local phone companies' costs for connecting long distance calls to and from customer's residences.
Cellular phone is an analog phone that transmits low energy radio waves to a local antenna site like satellite towers.
Cramming is when a company adds additional services such as call waiting, three-way calling, redialing, etc. that you have not authorized.
Infrastructure maintenance fee (IMF) is a fee that telecommunications carriers collect; it is dedicated to local government uses and municipal uses.
intraLATA - Calls within a LATA, carried by local phone companies. See LATA.
interLATA – Calls between LATA, carried by long distance companies. There is a toll or fee charged for these calls. See LATA.
LATA (Local Access Transport Area) – A geographic area within which a local phone company provides services. There are 19 different areas in Illinois.
LEC (local exchange carrier) – A local phone company providing phone service and handling calls within a LATA.
Local telephone company is a carrier like Ameritech, Verizon.
Long distance company is a carrier like, AT&T, MCI, Sprint.
Peak and Off-Peak are terms that some phone companies use to identify calling plan rates.
Personal Communication Services (PCS) is a digital wireless phone that looks like a regular cellular phone but uses digital technology. PCS offers e-mail, paging services, -- even headline news.
Slamming is when your telephone service is switched to another company without your consent or knowledge. It may happen when you sign up for sweepstakes or promotional checks.
To Get Help with a Complaint
For advice about a telephone problem related to slamming and cramming, contact:
Illinois Attorney General Office
Illinois Attorney General Office 500 S. Second St., Springfield, IL 62706 100 W. Randolph St. Chicago, IL 60601 Phone: 217/782-1090 Phone: 312/814-2503 or TTY:217/785-2771 TTY: 312/814-3374
Illinois Attorney General Office 1001 East Main Street, Carbondale, IL 62901 Phone: 618/529-6400 TTY: 618/529-6403
They may take the complaint from you or refer you to another agency that can help. Send a copy of your grievance to the company so they know you are dissatisfied. You can also write directly to the Federal Communications Commission regarding long distance problems, but be aware that complaints can take several months to process.
Federal Communications Commission Common Carrier Bureau -Enforcement Division Consumer Protection Branch Mail Stop Code 1600A2 Washington, DC 20554
For questions about local telephone service write to:
Illinois Commerce Commission Consumer Service Division 527 East Capitol Avenue, P.O. Box 19280 Springfield, IL 62794-9280 Or call (800) 524-0795 (Voice) (800) 858-9277 (TTY) (217) 524-6859 (FAX)
TRAC, the Telecommunications Research & Action Center, is a non-profit, tax-exempt, membership organization based in Washington, D.C. Its primary goal is to promote the interests of residential telecommunications customers. Customers can contact TRAC through the Internet on (www.trac.org) or via U.S. mail TRAC, P.O. Box 27279, Washington, D.C. 20005. Include a self-addressed business-size envelope, with 55 cents worth of stamps to find the cheapest calling plan for interstate calls.
Understanding Telephone Fees
Listed below are several items that may appear on your phone bills. It is important to note that each different telecommunications company may have its own terms to describe the same charges. There are federal, state and local charges that are added to the bill. If you do not understand particular charges on your phone bill, contact your company.
Federal
Charges Access Fees – Long distance companies pay local phone companies for access to consumers through local networks. (maximum of $0.53 for all first line, $1.50 for each extra residential line and $2.75 for each extra business line) as well as a per-minute rate for access.
Access Fees for Consumers without Pre-selected Long Distance Service – Local phone companies incur costs for making available lines that can be used to access long distance companies. Maximum per-line charges are the same as those listed for Access Fees.
Federal Subscriber Line Charge – Local phone companies must provide for the upkeep and operation of all the facilities used to bring service to consumers. A portion of the expense is passed on to customers. Residential users and businesses with single lines pay a maximum of $3.50 per month to support this cost. Extra lines in a residence cost up to $5.00 per month. Business lines cost up to $9.00 per extra line per month.
Universal Service Fees – As a result of the 1996 Federal Telecommunications Act, the FCC now requires long distance companies to help support the costs of bringing affordable telephone services to schools, and libraries. Rural areas and low-income customers are included in this act.
State Charges Illinois Telecommunications Excise Tax – The State of Illinois assesses a 7 percent tax on telecommunications services as of January 1, 1998.
Illinois Public Utility Tax – The work of the Illinois Commerce Commission is funded by a direct tax through regulated utilities. This tax is assessed at 0.1 percent (1/10 of 1 percent) of gross receipts on utility bills.
Local
Charges Local Telecommunications Tax – Municipal governments may apply a general telecommunications tax through telecommunications bills. The percentage of this tax will vary among municipalities. Check with your municipal government for more information.
Infrastructure Maintenance Fee (IMF) – Telecommunications carriers are required to collect infrastructure maintenance fees. The state fee is paid into the personal property tax replacement tax fund in the state treasury; law dedicates monies in this fund be dedicated to local government uses. The state fee is either 0.5 percent of gross charges or 0.25 percent of gross charges depending on circumstances set forth in Section 15 of the Telecommunications Municipal Infrastructure Maintenance Fee Act. The municipal fee cannot exceed 2 percent in the City of Chicago and 1 percent in all other municipalities.
9-1-1 Surcharges - 9-1-1 services in Illinois are funded by either local government general taxes or special charges approved by voters in a local referendum. A monthly charge will be separated on local phone bills for that particular location. The system provides information to professionals in the emergency communications and telecommunications field.
Adapted from Lessons for Living Handout "Telphone Options." Written by Barbara Cooper, Pat Hildebrand, and Susan Taylor. Reviewed by Vicki R. Fitzsimmons.
