Common Terms for Long Distance Telephone Company

1. Terms to
Know
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2. 800 Number
Toll free numbers charge the business or individual receiving
the call, not the caller. The toll free subscriber instead of the person
making the call pays the charge for the call
Billing Increments
How a carrier will round the call time for billing.
60 second increments
Calls rounded to the nearest minute. A 1 minute 25 second call is
rounded to 2 minutes.
6 second increments
A 1 minute 25 second call is rounded to 1 minute 30 seconds

3. FCC (Federal Communications Commission)
The FCC is an independent United States government
agency, directly responsible to Congress. The FCC was
established by the Communications Act of 1934 and is charged
with regulating interstate and international communications by
radio, television, wire, satellite and cable. The FCC's jurisdiction
covers the 50 states, the District of Columbia, and U.S.
possessions. Regulates interstate communications such as
licenses, rates, tariffs, standards and limitations.
Dial Around Service
Typically used with your primary telephone. Provides an
access code to dial around your PIC. This can be a 10-10XXX, a
toll free access number, or a calling card.
Federal Tax (Federal Excise Tax)
Appears on both your local and long distance phone bills.
Charged as a percentage of your total bill regardless of your
telephone carrier. It is 3% of long distance calls and 2.7% of local
calls.

4. Federal Subscriber Line Charge (Subscriber Line
Charge, SLC)
Similar to the PICC. Regulated and capped by the FCC. It is
not a charge by the government, it is not a tax. The number of
calls you place or receive does not affect it. The money is paid to
local telephone companies and will be charged to your local
phone bill. The SLC fee pays local phone companies some of the
costs of telephone lines connected to your home or business.
The current charge for primary residence lines and single-line
business customers increased to $5.00 on July 1, 2001. The
second and additional lines for residential service are
considered non-primary lines and are subject to a higher line
charge cap, even if the bill is in a second name at the same
address. The Subscriber Line Charge for non-primary lines is
capped at $7.00 per month thru June 30, 2005. For multi-line
businesses the maximum charge is the telephone company's
average cost of providing a line in that state, or $9.20 per line per
month, whichever is lower.

5. Interexchange Carrier
Another name for long distance carrier. Provides long distance between
LEC (Local Exchange Carrier) and LATA. Examples include AT&T, MCI
WorldCom, and Sprint.
Interstate Rate
Rate for state-to-state calls.
Intrastate Rate
Rate for calls made within the state.
LATA (Local Access Transport Area)
Division of telephone service into geographic regions. Used by
regional phone service provider to determine which areas are
considered "long distance" or "local." This is not represented by area
codes or exchange prefixes. Calls outside your LATA ( interlata) are
long distance. Calls inside your LATA (intralata) may or may not be toll
free, depending on the local phone company. Switching long distance
providers switches the calls made outside your LATA. To encourage
competition and give consumers more choices, the FCC has ruled that
intralata calls can be switched to the provider of your choice. You will
be charged the in-state rate for intralata local calls.

6. LEC (Local Exchange Carrier)
Local or regional company that owns and operates lines to consumer
locations.
Local Service
Calls within your local calling area.
Long Distance Toll Service
Calls outside your local calling area. "1" + area code + 7-digit number.
Minimum Billing Increment
Minimum amount of time you will be billed for a call.
Minimum Usage Requirements
Some plans specify a dollar minimum for your total bill. If you
don't reach this minimum, you will be charged a set minimum usage
fee. Some programs will charge you the difference as a fee. Monthly Fee
(Monthly Service Fee, Monthly Access Fee)- Some companies charge a
fixed monthly fee paid to your carrier regardless of your usage. This fee
is paid in addition to the cost of your

7. Municipal Charge
Charged by your local municipality to offset the costs of
community services such as 911.
Number Portability Service Charge (Local Number Portability, LNP)
FCC approved fee that pays local telephone companies for the
expenses of allowing a consumer or business to retain their existing
telephone number when switching long distance carriers. This is not a
tax and the fee goes to the local telephone company. It is up to the
local companies to pass the cost thru to the consumer. Most
companies do.
Off Peak Rate
The non-peak calling period, typically between 7 pm and 7 am.
Peak Rate
Prime calling hours, typically between 7 am and 7 pm.

8. PIC Switching Fee
Charged by the local provider when you change long
distance carriers. The fee is normally $5-$10 and charged
on your local phone bill. After your service is switched,
some carriers will reimburse the switching fee. To credit
the fee, the carrier will probably request a copy of the
phone bill with the switching fee.
PIC (Primary Interexchange Carrier)
The primary long distance carrier through which all
interstate long distance calls are made (1+ dialing).
PIC Freeze
Consumer arranges with local carrier to prevent
changing the user's PIC without permission ("slamming").

9. PICC (Presubscribed Interexchange Carrier Charge,
National Access Fee or Carrier Line Charge)
Long distance companies pay local phone companies a flat fee
for access to their local phone network. The FCC regulates the price,
but this is not a tax and the commission does not require long
distance companies to pass these charges to consumers. Each long
distance company pays the same flat rate per line and it is up to the
company how to distribute this charge. Pay attention the PICC
because each company charges differently. Some companies do not
charge for the PICC. The PICC charge appears on your long distance
bill.
RBOC (Regional Bell Operating Company)
One of the original seven local telephone companies (Baby Bells)
created as part of the breakup of AT&T. Ameritech, Bell Atlantic, Bell
South, NYNEX, Pacific Telesis Group, Southwestern Bell and US
West.

10. Regional Toll Service (Local Long distance,
Local Toll)
This calling area includes calls to places outside your
local calling area but not as far away as those covered by
long distance toll service. Usually itemized on your bill and
billed at a per minute rate.
Slamming
Unauthorized switching of your phone service from
one your long distance carrier to another without your
consent. This practice may involve misleading marketing
or outright fraud. Prohibited by Federal law and the FCC.
The FCC requires a long distance company to obtain your
authorization before changing your long distance provider.

11. Long Distance
Helpful Hints
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12. BUYER BEWARE
You have the right to choose the long distance carrier
that has the best plan for your needs. Long distance
companies are aggressively competing for your long
distance dollars. It is up to you to carefully read any offers
and beware of deceptive marketing tactics. Here are a few
to be aware of:
SLAMMING
Unauthorized switching of your phone service from
your long distance carrier to another without your consent.
This practice may involve misleading marketing or outright
fraud. Prohibited by Federal law and the FCC. The FCC
requires a long distance company to obtain your
authorization before changing your long distance provider.

13. INTRODUCTORY OFFERS
Some companies may give you a discounted rate for a
limited time then increase your rates until you cancel. Some
even charge a fee for change in service. Ask about fees
and cancellation policies before you sign up.
FINE PRINT
Before signing up, read the fine print of promotional
materials for monthly fees and other charges.
VERIFICATION GIMMICKS
Some companies may call offering a great deal for one
service, but when you speak to a verifier to complete the
sale they may attempt to sell you additional services. Be
completely clear on the deal before you are transferred to
the verifier. Then listen carefully to confirm that you are
buying only what you agreed to.

14. CONSUMER RIGHTS
The right to make an informed decision by comparing
products and services. Several consumer groups make
resources available to help your search: The FCC's National Call
Center, provides consumer information on telephone issues. 1-
888-CALL-FCC (1888-225-5322). The Tele-Consumer Hotline
offers free publications to address telecommunication related
issues. Send a self-addressed stamped envelope to Tele-
Consumer Hotline, PO Box 27279, Washington D.C. 20005
The right to avoid slamming.
You can get a "carrier freeze" from your local carrier to
prevent changes to your carrier unless you change it
directly.
The right to change to another carrier.
You may be charged a PIC Switching Fee for a change in
service or for canceling your existing service. Remember to
contact your local carrier if you have a carrier freeze.

15. The right to complain.
If reporting problems to your telephone company does not get a
solution, consider contacting: Your state Attorney General's office
about fraudulent or deceptive practices. Check the government section
of your phone book. The FCC about slamming or out-of-state long
distance problems. Write to: FCC, Common Carrier Bureau, Consumer
Complaints, Mail Stop 1600A2, Washington, DC 20554. Your letter
should include your name; address; day-time telephone number; a
summary of your complaint; the names, addresses, and telephone
numbers of all companies involved with your complaint; the telephone
number involved with your complaint, such as your home or business
telephone number; copies of disputed telephone bills and other
documents, such as promotional material or the form used to change
your long distance service; and the action you are requesting, such as a
credit or refund for disputed charges. The National Advertising Division
(NAD) of the Council of Better Business Bureaus (CBBB) about
complaints concerning inaccurate or misleading national
advertisements for telecommunications products or services. NAD is
the advertising industry's voluntary self-regulation program. It was
designed by an alliance between the advertising industry and the CBBB
to review and monitor national advertising to ensure its truthfulness
and accuracy. You can register a complaint by writing to: National
Advertising Division, 845 Third Avenue, 17th Floor, New York, NY 10022.

16. The right to get a refund.
If your telephone company is switched without your
authorization, call your local telephone company and your
original carrier to be switched back immediately at no
charge. You should also receive a refund if you were
charged a switching fee or billed at higher rates than your
own carrier's rates.
SHOPPING FOR LONG DISTANCE
The very first step is to know yourself, your calling
patterns, who and where you call the most.
Are the majority of your calls in-state or out-of-state?
When do you place your calls: days/ nights,
evenings/weekends?
What is your average monthly bill?

17. Deciding on a Long Distance Carrier
Find out if companies have a monthly charge, monthly minimum
charge or per-use charge.
Is there a service contract?
Is there a fee for canceling early?
Will you receive a bill in the mail?
Can you pay with direct withdrawal or a credit card?
Is there a discount for using a credit card?
Does the company have a toll-free number with 24-hour customer
service?
What is the number to call for repairs and billing problems?
Can you create a package of multiple services to meet you needs?
Are there special services for customers with speech, hearing or
vision problems?
Are discount services available for low-income consumers?
Federal Tax (Federal Excise Tax)
Appears on both your local and long distance phone bills.
Charged as a percentage of your total bill regardless of your
telephone carrier. It is 3% of long distance calls and 2.7% of local
calls.

18. Federal Subscriber Line Charge (Subscriber Line
Charge, SLC)
Similar to the PICC. Regulated and capped by the FCC. It is not
a charge by the government, it is not a tax. The number of calls you
place or receive does not affect it. The money is paid to local
telephone companies and will be charged to your local phone bill. The
SLC fee pays local phone companies some of the costs of telephone
lines connected to your home or business.
The current charge for primary residence lines and single-line
business customers increased to $5.00 on July 1, 2001. The second
and additional lines for residential service are considered non-primary
lines and are subject to a higher line charge cap, even if the bill is in a
second name at the same address. The Subscriber Line Charge for
non-primary lines is capped at $7.00 per month thru June 30, 2005.
For multi-line businesses the maximum charge is the telephone
company's average cost of providing a line in that state, or $9.20 per
line per month, whichever is lower.
Monthly Fee (Monthly Service Fee, Access Fee)
Some companies charge a fixed monthly fee paid to your carrier
regardless of your usage. Pay this in addition to the cost of your calls.

19. Municipal Charge
Charged by your local municipality to offset the costs of
community services such as 911.
Number Portability Service Charge (Local Number
Portability, LNP)
FCC approved fee that pays local telephone companies for the
expenses of allowing a consumer or business to retain their existing
telephone number when switching long distance carriers. This is not a
tax and the fee goes to the local telephone company.
PIC Switching Fee
Charged by the local provider when you change long distance
carriers. The fee is normally $5-10 and charged on your local phone
bill. After your service is switched, some carriers will reimburse the
switching fee. To credit the fee, the carrier will probably request a
copy of the phone bill with the switching fee.

20. PICC (Presubscribed Interexchange Carrier Charge, National
Access Fee or Carrier Line Charge)
Long distance companies pay local phone companies a flat fee for
access to their local phone network. The FCC regulates the price, but
this is not a tax and the commission does not require long distance
companies to pass these charges to consumers. Each long distance
company pays the same flat rate per line and it is up to the company
how to distribute this charge. Pay attention the PICC because each
company charges differently. Some companies do not charge for the
PICC. The PICC charge appears on your long distance bill.
USF (Universal Service Fund, Universal Service Charge)
A national policy to promote telephone service to all households.
Telephone service is a vital link to emergency services, government
agencies and surrounding communities and the USF is a subsidy to
make phone service available for all Americans. This includes
consumers with low incomes, schools and libraries and rural health
care providers. All carriers are charged the same USF%. However, pay
attention to this fee because companies have flexibility in passing this
fee to customers. The charge ranges from no charge at all, a flat fee, %
of interstate and international usage or % of entire bill. The company
keeps the difference between the fees they receive and the charge they
pay.

21. Taxes
You can't escape taxes by changing carriers. Taxes
vary by location but they are the same for all providers.
Taxes apply to both local and long distance companies
operating within a state. Tax dollars go to the local
governing body. To obtain information about state and
local taxes listed on your phone bill, contact your local and
state tax offices. These offices should be listed in the
government section of your phone book.
How can some carriers charge less than Sprint, AT&T
and MCI WorldCom?
The smaller (discount) carriers buy long distance
wholesale from the large carriers. They provide their own
customer service, billing and account maintenance. They
are able to keep their own costs low by avoiding expensive
marketing campaigns. Thus they can afford to offer cheap
long distance plans in comparison to large companies.

22. Is there a difference between long distance companies?
There is no difference in the quality of your long
distance connection. All long distance companies,
including AT&T, Sprint and WorldCom use the same fiber
optic networks to transport their calls. The differences are
found in the billing and customer service of each carrier.
With consistent quality guaranteed, you have the freedom
to find the best long distance rate to suit your phone
service needs.
How many long distance carriers are there?
There are over 1,200 companies providing long
distance in the U.S. Choice from the wide selection of
phone service carriers to identify the best long distance
rate available.

23. How do I switch long distance carriers?
1. Compare long distance plans to choose the plan that is best for
you.
2. Click on the new carrier's logo on our web page and register
your long distance order. Do not stop your old service yet.
3. In compliance with most state's regulations, the new carrier will
give you a verification call to restate the terms of new service and
verify that you want to switch to this carrier. If verification is not
done by a phone call or e-mail, arrangements for verification will be
made in writing.
4. The new carrier will give you the next step for switching your
service. Some will provide a PIC code to give your local phone
company. Others will contact the local company directly. The local
company must have this PIC to switch carriers.
5. Processing time is usually 5-10 days. To check on the switch
and test which carrier is currently serving you, call 1-700-555-
4141. If the name is unfamiliar, it is possible that the long distance
carrier is using the line of another carrier (this is not uncommon).
If you have any questions, contact your new carrier.

24. How do I verify my long distance has been
switched?
Normal processing time is 5-10 days. To check on the
switch and test which carrier is currently serving you, call
1-700-555-4141. If the name is unfamiliar, it is possible
that the long distance carrier is using the line of another
carrier (this is not uncommon). If you have any questions,
contact your new carrier.
What happens if I don't choose a long distance carrier?
If you don't have a long distance carrier and make a
long distance call, you will be charged a very high rate,
sometimes $.80 per minute. There are many quality cheap
long distance plans available that can save you money
and avoid this excessive rate.

25. How will I be billed?
Carriers send out the traditional monthly bill in the
mail. However, there are billing options available. Most
accept credit cards and direct withdrawal from your
checking account. Some carriers even offer a discount for
credit cards and direct withdrawal.
Is there a number I can call for customer
service?
Carriers have their own toll free customer service
number. They will give you the number when you register
for their service and it will be on their bill.

26. How can I know that I am getting the best
long distance rates available?
It is our job to monitor the phone
companies for rate changes and keep the
consumer informed about the best long
distance plans available. We want you to
save as much money as possible on your
phone bills. Long distance companies
notify us with changes in their calling plans
and special offers.