Shifting local calls to an alternate carrier

In some markets, the local provider does not offer low rates for local calls. A business in this situation may be able to cut its costs by switching to an alternate carrier for its local calls. Changing your local calling provider is not as simple as changing your long-distance provider, but it may be worthwhile if you can save enough money.

Using the long-distance carrier’s T-1 for local calls
Local calls are normally carried across LEC trunks to the central office and then the call is connected to its destination (see Picture 1). But if you have dedicated service through your long-distance provider, you can easily switch your local calls to your long-distance provider from your local carrier. Dedicated service means you have a T-1 connection from your facility directly to the long-distance carrier’s central office (see Picture 2). The outbound local calls can be rerouted away from the local provider by reprogramming the PBX to handle local calls as long-distance calls. Incoming local calls will still use the local carrier’s trunk lines.


Local calls originate at the customer’s premise and travel across local telephone company trunks.



Local calls originate at the customer’s premise and travel across the T-1 connection


In a typical example, the PBX sends these local calls to AT&T instead of the incumbent local provider, such as Pacific Bell. AT&T has been calling this service Digitalink. By reducing the cost of their local calls from $0.02 per minute to $0.01 per minute, I have seen many Digitalink customers save more than $500 each month.

CLECs
The second way to move your local calls away from your current provider is to switch carriers altogether. The new CLECs would be more than happy to have your business. A business with a significant amount of expensive local calling whose local service is not complex is a good candidate to switch to one of the many new CLECs. Be careful that they do not also secure your long distance, however, unless you want them to.

OPX: The off-premise extension
A business with two locations in the same city is billed for local calls between the two facilities. If it has Centrex service, however, it can eliminate these charges. With Centrex, one location can be designated as an off-premise extension (OPX).

The OPX functions like an internal extension, and calls between the two facilities are handled like internal calls rather than local calls. Converting an off-site location to an OPX eliminates all local calling charges between the two locations.

Zone calls
In certain markets, customers are billed for zone calls, in addition to the local calls and the intralata calls. This is true for Ameritech’s Detroit, Michigan, customers. As Figure below reveals, the zone is a geographic area in-between the local area and intralata area.


Zone calls in Detroit, Michigan.

Zone calls are like local calls in that the phone bill gives no detail for these calls. Zone calls are like intralata calls, in that zone calling rates are much higher than local calling rates. But unlike local calls and intralata calls, the cost of zone calling is difficult to reduce. However, you can have your zone calling volume contribute toward a greater volume discount with your carrier.

Ameritech’s Value Link plan offers lower intralata rates based on a term and volume commitment. Although the zone calls are not directly reduced, at least the volume from these calls contributes to the overall Value Link volume commitment. The Value Link plan is being replaced by the newer Complete Link plan.

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