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Are you giving money to your phone company? How to shop for long distance service.

2) USF surcharge, also known as Universal Service Fund Charge or Universal Service Charge, Carrier Universal Service Charge, Federal Universal Service Fund Surcharge.

A lot of phone companies like to put the words federal somewhere in this fees' name so that you will think it is a tax. This is not a tax!

The phone company keeps this money.

The rate will vary from one company to another.

It is a percentage of the long distance and international charges on your bill. If you spend $300 a month and pay 4% more for the USF fee that alone is $12. At 4.5 cents a minute that's equivalent to an additional 267 minutes of talking.

3) Last are the long distance charges. The per minute charges for all of your interlata calls. This is were everybody seems to be concerned when they shop for long distance.

Although important we are talking about a fraction of a penny difference between most plans. The other fees can easily eat this up and then some.

Here are the quick points for comparison shopping.

  • Is there a monthly fee just to have the plan? Generally this is not good.
  • Is there a PICC fee? If so, include it in your cost estimates (per line).
  • What is the USF fee? This can vary from 7% to 15%. This alone can make or brake a plans value.
  • Lastly, the per minute charges for the calls.

Add up all of these figures and you will have a true picture of what you are being charged. Only then can you begin to compare carriers' plans for what they really are.

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More info

1Plus Long Distance FAQ

Glossary

Interlata? Intralata? What is this?

Are you giving money to your phone company? How to shop for long distance service.


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