Telephone competition is evolving slowly. For consumers, it started with phones and communications equipment. Then came competitive long-distance service. The last stage is local telephone service competition.
For better or worse, telephone competition means more choices for customers. This means you have to be prepared to make a choice. And often, making a good choice means asking good questions.
For instance, directory assistance is now provided by a number of firms which may charge different rates for their service. Another example is pay phones. They now can be owned by private companies as well as the phone company. Rates have been deregulated, and they may have different long distance companies available. As a consumer you have the right to know what the rates are before you dial, but you have to ask.
Competition means consumers have to do their homework. It's important to think of all your communications needs -- local, long distance, phone equipment, internet connections, and extra services such as voice mail. That way you can pick the provider or providers that best meet your needs. When you are using services or providers that aren't familiar to you, be sure to ask the rates in advance. Don't assume that the rates or service are what they always were!
Before you decide to switch your local service, there are a number of questions you should ask yourself, as well as the company you’re considering.
Will you really save money?
If you have looked at your phone bill in recent years, you know how difficult it is to compare rates. When considering a new provider, find out what charges are included and what charges are not. Ask for a sample bill so you can compare it with your current bill. Ask questions about anything you don’t understand, particularly if you see charges on your current bill that are missing from the sample bill. Does this mean they are not charged or did they forget to include it?
Ask about the price for other services that you might eventually acquire. What are the new company’s disconnection and deposit policies? And if you’re unhappy with the service, will you be able to switch back at no charge?
Will you get the service you expect?
Be sure you understand what calls are free and what calls will be assessed a per-minute charge. If you have any features with your current service that you wish to keep, determine if they’re available with the new service. Will you be able to use the long-distance carrier of your choice? Will you have to pay a minimum amount or take the service for a minimum period of time?
Are there any other restrictions? Will you be able to keep your phone number and will you be listed in the phone directory?
Some companies provide service over their own facilities while others lease and resell services from the former monopoly telephone company. Make sure you understand how they’re delivering your phone service. Also determine whether you will need to acquire any equipment such as phone sets or wiring to handle the new service.
How will the switch be made?
Switching local service requires arrangements between your existing company and your future company. Will you need to contact your existing phone company?
How long will the switch take and how will you know when your new service starts? Make sure your new service starts before you disconnect your old service. What contingency does the new company offer in the event that your existing service is turned off before your new service can start? If the new company fails to meet its commitments, what compensation will you receive?
Customer Service
Get a good measure of how the company will handle your service needs and questions in the future. How will you be billed? Does the company provide a toll-free number for billing, customer service and repairs calls? How difficult it is to find a live person to help you with your problem when you call their customer service line?
Be Flexible
Keep in mind that no matter how reliable your new company is, problems can occur. Most customers switch without serious complications but technical glitches are not uncommon. Given how little experience we have in local phone service competition, a few problems should be expected.
Posted/updated: 10/13/99
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