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How does Business Long Distance pricing work?

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In general, business long distance is priced by the minute. Good business long distance rates are similar to good residential long distance rates�ten cents a minute or less is good, more than fifteen cents a minute is overpriced. The industry is competitive, so shop around, but as you shop around, make sure you understand exactly what each company means when they say they charge you by the minute.

One common difference in per-minute billing is between variable-rate and fixed-rate calling. Fixed rate calling costs your company the same amount no matter what time of day you call, whether it is 11:30 Monday night or 5:15 Saturday morning. In contrast, variable-rate calling varies based on the day and the time. If a company boasts an extremely low per-minute rate, make sure it is that rate all the time.

In addition, some providers offer differing rates for instate and out of state calling. A call to the state capital might cost half as much (or twice as much) as a call placed to a neighboring state.

A third difference in pricing strategies is the increments used to measure calls. Some business long distance providers bill by the minute, which means that if you talk for five minutes and one second, you are billed for six minutes. Add it all up, and over the course of a month, your company could end up paying for scores of hours during which you weren�t even on the phone.

Again, it is important to remember that business long distance is a competitive business. Ask around, and don�t be afraid to ask one company to match or beat another company�s offer.

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