Telecommunications

• Local telephone choice
• Long-distance telephone service
• Understanding your telephone bill
• Telephone rights
• Preventing telemarketing calls
• Handling unwelcome callers
• Protection from telephone scams

Telephone choices

While residential consumers have had long-distance telephone choices for nearly two decades, only recently have some residential consumers been able to choose among providers for local telephone service.

In some areas of Ohio, competitors are offering packages, many of which bundle unlimited local calling with features such as Caller ID and Call Waiting. Some competitors also include long-distance minutes, unlimited Internet access or even cellular and broadband service.

Choosing a long-distance telephone provider can be tricky. There are hundreds of longdistance companies and each company offers numerous calling plans. With so many options, it can seem overwhelming when trying to find the long-distance plan to best fit your needs.

The Office of the Ohio Consumers’ Counsel (OCC) can provide you with a wide variety of information on how to choose a local or long-distance telephone company and what questions to ask when signing up for service.

Know your needs

To choose the best long-distance calling plan, you first should know and understand your needs. Reviewing your long-distance telephone bill is an important first step. You should know:

• The number of calls you make each month.
• How long each call lasts.
• What time of day you make most of your long-distance calls.
• The destination of long-distance calls (in-state, out-of-state or international).

Once you understand your calling needs and patterns, compare the different plans offered by long-distance telephone companies.

Finding a long-distance company

To find the long-distance company that is best for you, contact several competitors and request written information about calling packages they offer. Most companies have Internet sites that describe their plans and the terms and conditions of service.

Perhaps you have contacted different companies and received information about the plans those companies offer, but you still cannot decide which plan is best. Another option is to contact Consumer Action, which offers a free guide to long-distance calling plans at its website at www.consumer-action.org. You may also write the group at 717 Market St., Ste. 310, San Francisco, California, 94103-2109

You also can visit A Bell Tolls at www.abtolls.com, which provides long-distance rate comparisons, including “10-10” dial-around services, long-distance plans and pre-paid calling cards. The comparisons detail day, evening and weekend rates as well as any minimum monthly charges that may exist.

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Understanding Your Telephone Bill

Telephone bills have become more complex in recent years due to a growing number of companies offering a wider variety of services, including Internet access, second lines and voice mail. Many of these charges, including long distance, appear on one monthly telephone bill.

Telephone bills include many itemized fees and charges. Breaking out these fees and charges may have actually caused more confusion than clarity for some customers. Federal, state and county taxes are mandated and charged on telephone services by these government entities. In addition, federal and state regulatory agencies allow telephone companies to recover costs associated with government-mandated programs and required improvements to the telephone network.

In addition, some companies charge fees that are labeled as “administrative” or regulatory” but are not mandated by any government entity.

Sample Telephone Bill

	Account Number, Current Charges and Due Date
	Previous Charges
	Local Service: This is the charge for your local calling plan. Many consumers choose to have unlimited calling, however most telephone companies have message and measured rates available. A message rate plan includes a fixed number of calls per month with additional calls billed at a per-call rate. A measured rate plan bases local charges on the time, distance and length of each call you make.
	Line Charge: This is a fixed fee that some local telephone companies charge to access the network. Some companies may add zone charges to their local service charges. Zone charges are based on the distance you live from the company’s local facilities, known as the “central office.”
	Call Waiting: Features like Call Waiting and Caller ID typically carry a monthly charge and appear here. Review your bill to confirm that you are only being charged for features that you have authorized.
	Subscriber Line Charge*: This fee, charged by most local telephone companies, is allowed by the Federal Communications Commission (FCC) to recover the costs of the network used when making long-distance calls to other states. The name of this fee varies by company and commonly appears on bills as the Federal Access Charge or Interstate Access Charge. In addition, customers of Sprint and Verizon local service pay an Intrastate Access Fee or Access Recovery Charge, respectively. These charges recover the costs of the network used when making long-distance calls to telephone numbers within Ohio.
	4-1-1 Usage: “Pay per usage” fees for services like directory assistance (4-1-1) and automatic callback (*69) typically appear here. You will be charged each time you use a feature and can call your local telephone company to place blocks on many of these features at no charge.
	9-1-1 Emergency System Charge*: This fixed monthly fee is charged to most customers to maintain the 9-1-1 system used by many police, fire and emergency medical services.
	Line Number Portability Charge*: Some local telephone companies collect this fee, which pays for the ability to retain your existing telephone number if you switch to a competitive local service provider.
	Universal Service Fund Charge*: This monthly fee, which also may appear on the long-distance section of your bill, pays for governmentmandated programs to make local telephone service affordable to low-income consumers and those living in rural or high-cost areas. It also helps provide Internet access to schools, libraries and rural health care providers. On the local bill, this charge is a percentage of the amount of the local telephone company’s Subscriber Line Charge.
	Federal Tax: This is 3 percent of your total local telephone bill. Proceeds go to the U.S. Treasury and become part of its general revenue.
	County and State Sales Tax: Your local telephone company collects sales tax, which typically appears as a separate item on your bill. *Local telephone companies are permitted but not required to pass on these costs.

Sample Long Distance Telephone Bill

	Name of Long-Distance Provider: Each long-distance company you use to make a call appears as a separate section of your telephone bill. To prevent being “slammed,” or switched to a different carrier without your permission, be sure that you have requested service from each long-distance company that appears on your bill.
	Monthly Long-Distance Plan Charge: Some long-distance plans have monthly fees. Depending on the specific plan, a monthly fee may be charged regardless of how often you use the service. Some plans impose a charge if your long-distance calls do not meet a monthly minimum amount.
	Universal Service Fund Charge: This fee, which also appears on the local service section of your bill, pays for government-mandated programs to make local telephone service affordable to low-income consumers and those living in rural or high-cost areas. It also helps provide Internet access to schools, libraries and rural health care providers. The fee is based on a percentage of your long-distance charges.
	Federal Tax: This is 3 percent of your total long-distance charges. Proceeds go to the U.S. Treasury for general revenue purposes.
	State and Local Sales Tax: Your long-distance company charges sales tax, which typically appears as a separate line item on your bill.

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Telephone rights

You have the right to receive quality service. All companies providing local or in-state longdistance services must meet Ohio’s Minimum Telephone Service Standards (MTSS) and other consumer protection standards. These regulations include how long companies are allowed to take to restore service and what actions these companies are permitted to take if you do not pay your bill on time.

Installation

Local telephone companies may charge an installation or service connection fee and you have the right to be billed these charges in three monthly installments. The company is required to provide you service within five business days of your request. If the company does not meet this requirement, you are entitled to a credit. You also can receive credits for missed installation appointments and commitments.

Deposits

You may be required to pay a deposit for local telephone service if you have not previously established credit or do not pay your bill on time. The amount of the deposit cannot exceed 230 percent of the estimated charges for one month’s local service. For example, if your monthly bill is estimated to be $35, then your deposit should be no more than $80.50.

The company must refund your deposit plus interest after one year of service if you do not pay late more than twice over 12 consecutive months.

Repairs and appointments

Local telephone companies are responsible for the outside lines leading to your home. You are responsible for maintaining the inside wiring.

Companies are required to provide you the time, within a four-hour window, during which an outside repair will be made. If a company misses an appointment or the four-hour window, you are entitled to a credit.

Out of service

It is important that you inform your telephone provider of an outage as soon as possible. If you have an outage for longer than 24 hours from the time you report it, you are entitled to a credit.

Billing

Telephone companies must mail your bill at least 14 days before it is due. If payment is not made on time, late fees may apply and you could face service disconnection.

Complaints

Telephone companies must resolve consumer complaints within 10 business days or provide you a status update explaining what needs to be done and when the resolution is expected.

Who to call

If you feel your rights have been violated or have trouble resolving issues with a telephone company, call the Office of the Ohio Consumers’ Counsel toll free at 1-877-PICKOCC (1-877-742-5622).

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Preventing telemarketing calls

Many consumers are annoyed at telemarketing calls, especially those that take place during the dinner hour. Fortunately, you are able to place your home telephone, fax, pager and cell phone numbers on a national Do-Not-Call registry. Since 2003, this free registry has allowed you to prevent unwanted telemarketing calls made by most companies.

Charities, political organizations, political candidates and companies with whom you have an established business relationship are exempt. However, consumers may ask to be placed on the organization’s internal Do-Not-Call list.

Consumers may join the Do-Not-Call registry at any time. Once a number is registered, it can take up to 90 days for it to be removed from telemarketers’ lists. Numbers placed on this registry will remain on the list for five years, at which point registration can be renewed.

The registry can be accessed online at www.donotcall.gov or by calling toll free 1-888-382-1222.

In addition, Ohio has a Do-Not-Call law. This state law gives the Attorney General the enforcement authority to seek criminal and civil penalties in state and local courts against telemarketers who call Ohio residents registered on the national Do-Not-Call list.

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Handling unwelcome callers

While the national Do-Not-Call list will help rid your home of many telemarketing calls, you may still receive calls from organizations that are not required to stop calling you.

The following two steps may help you keep the time you spend with unwanted telemarketing calls to a minimum:

• Tell the caller that you are not interested in the offer. You do not need to explain your reasoning. If the telemarketer persists, remember that you can always say, “I am terminating this call” and hang up the telephone.

• If you don’t want a repeat call, be sure to tell the caller to place your name and number on the company’s internal “Do-Not-Call” list. Your name remains part of this list for five years.

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Protection from telephone scams

Each year, consumers fall victim to illegal telephone scams. Two of these scams are known as “slamming” and “cramming.” Slamming is when your local or long-distance carrier has been switched without your permission. Cramming is when you are billed for telephone products or services you never ordered. Examples of cramming may include being billed for calls you never made, a telephone you never bought or a membership you never intended to purchase.

Slamming and cramming are just examples of over-the-telephone scams. To give you a better chance of being protected when you receive a sales call:

• Do not rush. Allow yourself enough time to ask questions. Ask the company to send written information on the product, service or charity before making a commitment to spend money.

• Never send money (cash, check or money order) to anyone who requires an immediate payment. Avoid giving personal information such as account numbers and credit card information unless you have decided to purchase a product or service.

• Be careful about saying “yes” to a gift or prize. The telemarketer may be trying to have you authorize the purchase of a product or service.

• Get the name of the company and check out its credentials. An important resource to help you in your research is the Better Business Bureau. You can conduct a national search on any company and obtain a list of local Better Business Bureaus through the Internet at www.bbb.org. You also can contact the National Fraud Information Center at 1-800-876-7060 to discuss the product or service being offered with a trained professional.

• Remember that if you are offered a prize, you should not be asked to pay for it.

• Review your telephone charges each month. Look for company names you do not recognize, charges for calls you did not make and any services you did not authorize.

• Carefully read the fine print before filling out contest forms or coupons. You may be authorizing the purchase of a product or service.