December 21, 2001

Telephone customers seeking low-cost rates for long-distance calls should ask companies for the "terms and conditions" of long distance calling plans before subscribing to a plan. This will help customers ensure they are getting the best rates possible for their in-state and out-of-state long distance telephone calls.

Calling plans are designed to make money for the seller. Whether the customer benefits depends on whether the offered plan fits his or her needs. To avoid unexpected costs, telephone customers should get more information about recurring charges, call restrictions, and call destinations before agreeing to a plan.

A recurring charge (often called a “monthly plan fee”) is a fixed charge added to each month's bill regardless of the minutes of calling made at the advertised per-minute rate. A recurring charge means that the customer's total cost will be more than the quoted per-minute rate. For example, by adding a $3 recurring charge to a plan that offers long-distance calls at 10 cents per minute, a person who uses 20 minutes of calling time ($2) would pay $5, or an average calling cost of 25 cents per minute. For people who make few long distance calls, a plan with a higher per-minute charge but no monthly recurring charge might be a better choice.

Call restrictions determine when the advertised rate is available and when calls will be billed at a higher rate. Often the advertised low rate is restricted to calls at night and on weekends, or the low rate may not apply until the customer has used a specified minimum number of calling minutes.

Customers should also be aware that rates may vary depending on the destination of their call. In particular, some low long-distance calling rates apply only to state-to-state calls. Calls that originate and terminate in Maine are sometimes billed at a higher rate.

Even offers of low-cost long-distance rates that do not involve a change in a customer’s primary long-distance carrier contain the risk of unexpected charges. To place a call over another carrier’s network, customers “dial around” (i.e., dial another company’s five digit access code or use a toll free number) their primary long distance carrier to access the other network. The “dial around” carrier might add an “occasional user” charge, and the call could end up costing far more than the rate that would have been charged by the customer’s primary carrier.

Information about charges and restrictions is printed on written solicitations. The information usually appears in small print, often far away from the low-rate offer being emphasized. That information is not always volunteered in telephone solicitations for long-distance business.

The Maine Public Utilities Commission investigates complaints from consumers for possible evidence of fraud, deception, or violation of Commission rules. In extreme cases, a long-distance carrier might be required to surrender its certificate and stop doing business in Maine. However, nothing protects a consumer better than asking for and getting all the needed information to decide what calling plan best suits an individual’s needs.

For more information, or to register a complaint with the Commission, please call their Consumer Assistance Hotline at (800) 452-4699.