Unless you participate in a discount calling plan, or use a dial-around service, just picking up your phone and placing an international long distance call could be expensive. The difference between basic rates and discount calling plan rates is so great that even one relatively short call per month can be cheaper on a calling plan.

A calling plan is a monthly agreement for service between you and your long distance carrier at a previously quoted rate, and usually includes a monthly fee. Whether or not you can benefit from a calling plan depends on your calling patterns. To determine whether a plan is right for you, first ask your carrier whether any of its international calling plans will lower your monthly phone bill, based on your calling history.

Next, get the facts. Find out if there are any flat rate fees associated with those plans (generally $3.00 to $8.00 per month). Ask whether the quoted rate applies 24 hours a day, 7 days a week, or only at certain times and days of the week (i.e., the calling plan rate applies only between 5 p.m. and 7 a.m., Monday-Friday).

Ask about taxes and other fees. Remember, if one plan does not benefit you or meet your international calling needs, keep shopping around for one that does. Also, the Internet is a good source to shop for a plan. Visit the Web sites of international long distance telephone service providers and compare their plans.

You might say, "I only make a few international calls a year -- not enough to justify the monthly fee of a calling plan." In that case, using a dial-around or pre-paid card may be for you.

Most dial-arounds begin with the numbers 10-10 followed by a three-digit access code (10-10-XXX). Some use other combinations such as 10-15 or 10-16 followed by a three-digit access code. Dial-arounds require the use of these access codes along with the rest of the number you are dialing. For example:

Using a dial-around allows you to bypass or "dial-around" your selected long distance carrier and use another long distance carrier that offers cheaper rates than your regular plan. Many dial-around rates are as good as or better than calling plan rates and have no monthly fee. Charges from using dial-arounds appear on your monthly bill.

Be a savvy shopper if you plan to use a dial-around. Consumer-oriented Web sites and publications can help you determine whether a particular dial-around number is available in your area, and whether a dial-around is right for you.

Before using a dial-around company, ask the following questions:

Do any flat fees or monthly charges apply?
What are the per-minute rates?
Are any charges for federal or state programs added?

Pre-paid calling cards provide telephone time that you pay for before you make your calls. They may be purchased in a number of dollar or minute increments. Pre-paid calling cards contain a toll-free access telephone number and a personal identification number (PIN).

There are many advantages to pre-paid cards. First, pre-paid cards for international services generally offer discounted rates. In addition, they are sold at convenient places such as newsstands, post offices, and stores. Moreover, consumers who do not have residential long distance telephone service can use these cards. Some cards also have features such as speed dialing for frequently called numbers and activity reports for frequently called numbers. Finally, these cards allow callers to pay for calls in advance, rather than running up high bills that must be paid at a later time.

However, consumers still need to be careful when using pre-paid calling cards. Pre-paid cards sometimes have hidden costs. For example, some cards appear to charge by the minute, but also add a fee for each call. When choosing a pre-paid card, read the fine print on the card’s label.

Consumers need to be aware that many pre-paid cards contain expiration notices – for example: "This card expires on 12/31/02." Also, most pre-paid calling cards contain notices stating that the company issuing the calling card is not responsible for stolen or lost cards.

Call the company that produces the card to get information about all charges associated with international calling. Remember, because you pay in advance, you may lose money if you have problems when using these cards. Get all the information you can before purchasing these cards.

International callback services allow consumers to make calls from outside the United States at U.S. long distance rates that are often much lower than rates charged in foreign countries. Such services are good for businesses with offices outside the United States, government agencies, banks, as well as individual consumers who are traveling outside the U.S. Callback services require advance subscription. These services work by allowing a person outside the United States to make a call, usually by using a toll-free 800 number, plus an access code assigned by the callback provider.

The subscriber dials the 800 number and enters the access code to obtain a dial tone that permits the subscriber to make a callback to the United States or to another country. There are numerous callback service providers that offer service to and from a number of foreign countries.

Be advised, however, United States callback providers are not authorized to provide service to customers in countries that expressly have declared callback services to be illegal. To find out which countries prohibit callback services, contact the FCC’s Consumer Center at 1-888-CALL-FCC (1-888-225-5322), voice or 1-888-TELL-FCC (1-888-835-5322), TTY; or visit our Web site at www.fcc.gov/cgb.

MONEY SAVING TIPS FOR SELECTING AN INTERNATIONAL
LONG DISTANCE SERVICE