Unlimited plans can be great for high usage callers, but it's very important to read fine print and fully understand plan before you sign up. Keep in mind that you're committing yourself to pay for a high priced plan whether you use lots of service or not. If amount of long distance you use varies from month to month, you might come out ahead by sticking with a per minute plan. Calculate out costs and consider your future calling patterns carefully.

- Compare and Save -

When considering any long distance plan (whether per minute, fixed or unlimited) you need to get a list of following costs: interstate (state to state) rate, service fee, USF Charge, PICC Fees, Carrier Recovery Charge, in-state rates, and any minimum usage requirements. If you make international calls, get international rates and any international plan fee.

These costs vary from company to company. If you can't find them on company's advertisment or website, ask about them. Asking questions is a good way to learn what company is like before you sign up with them.

You CAN make a smart choice when it comes to long distance. It's well worth applying yourself and getting a lower rate.

When comparing plans that charge by minute, look for:

1) A flat rate. The price should be same any time of day or night.

2) No service fee. This will save you $4 to $8 up front. You may need to use a credit card, or use certain amount of service, to get this benefit.

3) Billing increments of one minute (or less), and a one minute (or less) per call minimum. Nothing should be billed in higher than one minute increments.

Avoid services that advertise a per/unit price. Don't assume 'unit' means 'minute'. It doesn't.

Avoid plans that require you to sign a multi-month or multi-year contract, and avoid plans that require you to use a certain amount of service each month. You can find low rates without these restrictions.

Do keep in mind that primary rate long distance companies advertise is interstate (state to state) rate. If you regularly make in-state long distance calls, be sure to check and compare those rates as well.

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In part two, we'll look at high usage plans, and list some items to compare side by side when selecting a plan.

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