How to Negotiate Your Long-Distance Phone Service

Americans spent almost $100 billion on long-distance telephone calls in 2002--and some estimates say one-fifth of that was wasted on excessive charges. Picking a smart plan can shave wasted cash.

Difficulty: Moderate

Instructions

Things You'll Need:

• Old phone bills

1. Review several months of phone bills to understand your long-distance calling patterns. How might they change in the near future? Is a friend or family member planning to move out of the area?

2. Separate your in-state and interstate charges, usually billed at different rates. Shop for a plan that has low per-minute interstate rates if most of your calls are made to other states. Find a plan with low in-state rates if that's where you're calling. Regional plans from a local carrier might be your best bet.

3. Seek out a plan with small--or no--monthly fees if you make less than 100 minutes of long-distance calls per month.

4. See what advantages you gain by using the same carrier for both local and long-distance service. Make sure the promised savings are based on the plan you currently have, rather than on a competing carrier's most expensive plan.

5. Ask a new carrier to pay all the costs associated with switching you over. Get the promises in writing.

Tips & Warnings

• Many mobile phone service plans include free long distance-- a good deal if the minutes and times fit your calling patterns. See How to Choose a Mobile Phone Service.
• Check your plan every few months to make sure you're still getting the best deal.