History of Long-Distance Calling

History of Long-Distance Calling

(An amazing text coming back from 1995 about those old time forever gone since that):

It’s not as confusing as you think. Rule 1: sign up for a discount plan

There’s no place to hide from the marketing blitz by long-distance phone carriers trying to lure new customers. Some 25 million phone users switched in 1994 alone, but half of all phone users stuck with basic long-distance rates. To switch or not to switch? That’s the question.

The answer is that you will save by choosing a discount calling plan over the basic rate, no matter what the company. Prices among the big three companies – At&T, MCI and Sprint, which have a nearly 90 percent share of the $61 billion market – are very close. At&T is only marginally more expensive than the other two. Certain programs may fit your calling pattern more effectively than others, however.

In searching for a carrier, don’t overlook the smaller long-distance phone companies or the resellers, some 400 companies that buy long-distance capacity from the majors at special rates and then resell the time cheaply. The smaller guys usually charge a flat per-minute rate. Some require a $50 or so monthly minimum. If your long-distance bills are less than $10 a month, you can probably get a better deal with cut-rate carriers (the average long-distance bill for an AT&T customer is $17 a month).

To locate a local reseller, call VanTek Communications. The service, which is funded by resellers, is offered free to consumers.

History of Long-Distance Calling. Photo by Elena.

Keeping up with frequent rate changes in the industry is neither difficult nor time-consuming, once you know your calling habits and can easily see which increases affect you. One way to do so is by picking up a copy of Teletips Residential Long-Distance Comparison Chart. The $3 chart is put out by the Telecommunications Research & Action Center, a non-profit group in Washington, D.C. Another way is to take advantage of company programs such as MCI’s Proof of Savings. You provide them with the numbers you call most often and they’ll give you a comparison of costs between MCI and AT&T rates.

Comparing the Big Three

Base rates at At&T and MCI are nearly identical. Daytime rates are between 27 and 28 cents a minute. Evening rates are 16 to 17 cents, and late-night and weekend rates are 14 to 15 cents. Sprint has a flat rate policy. Some popular discount plans:

At&T: True USA and true savings. True USA gives a 30 percent discount on domestic long-distance calls if you spend $75 or more per month. Charges of $25 to $74,99 are cut by 20%; $10 to $24.99 gets a 10 percent discount. True savings offers 25% off $10 to $49.99 and 30% of $50 and more. No monthly charge or sign-up fee.

MCI: New friends and family. Make $10 or more on domestic calls and get a 25 percent discount from MCI’s basic rates, more than $50 a month gets 30 percent off. No fees. A further 50 percent off if you call other plan members.

Sprint: Sprint sense. Flat rate fee of 10 cents per minute from 7 p.m. To 7 a.m., and weekends for domestic calls. Daytime – 22 cents. No minimum.