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10-10 long distance/dial-around
Before the emergence of so many low-cost direct-dial plans, so-called 10-10 long-distance providers were the cheapest way to make a long-distance phone call. These required you to dial an access number before placing your call. These plans -- referred to as "dial-around" -- now often use access numbers that don't contain the 10-10 prefix, but the idea is the same. The dial-around provider gives you a special number to use when making long-distance calls. This can be done without having to switch your long-distance phone service. You can use the access number as a convenient way to potentially save over a major carrier like AT&T or Verizon.
However, dial-around service will still cost more than actually switching to a cheaper long-distance company. For instance, TCI's dial-around service has a 4.9-cent per minute rate, compared with a rate of 3.9 cents a minute for its regular long-distance service. "Given current pricing for long distance, the use of dial-around services is almost always a waste of money," says MyRatePlan.com, International dial-around service can save you money when using a cell phone, and some of the carriers listed in this report, including Telna, offer the service for their subscribers.
Unlimited long distance: flat-rate long distance
If you make more than 15 hours or so of long-distance calls per month, a flat-rate plan may be worth investigating. For example, AT&T's Unlimited Plus plan (*Est. $33) includes unlimited local calls, plus in-state and state-to-state long distance. AT&T charges a monthly connection fee in 29 states to recoup charges from some local phone companies. The fee varies, but is generally between 70 cents and $2.50. You can find out if your state is included by consulting the AT&T website. AT&T's Unlimited Plus plan does not include local service, and you need to have AT&T local service to qualify for the plan. AT&T's all-inclusive local and long-distance plans start at $56.
Verizon offers a number of Freedom Unlimited Calling plans (*Est. $53 and up) provides basic unlimited local, regional and long-distance calling throughout the U.S., Canada and Puerto Rico. For international calling, Verizon's World Plans (*Est. $15 and up) provide blocks of 300 or 500 monthly minutes. Subscribers to Freedom Unlimited Plans can get unlimited international calls for another $25 per month; the World Unlimited Plan costs $30 for Verizon customers who don't sign up for unlimited domestic long distance.
VoIP plans include both local and long-distance calls, along with lots of extras such as voicemail and call waiting. Starting at about $25 per month, most VoIP services are cheaper than traditional bundled local/long-distance plans. See our report on VoIP for more information.
Bundled long distance
Verizon and AT&T both offer incentives for new and existing customers who already subscribe to each company's other services. For example, if you use Verizon Wireless, you can add unlimited local and long-distance home-phone service -- normally $42 per month -- for $30 per month. AT&T has some similar discounts.
Most of the sources on the Our Sources page are ideal for looking up information on specific long-distance plans.
TheDigest.com also is a good resource for general industry news.
For information on the USF fee, see the FCC website.
Consult a provider's website to check on availability and rates for your area: