Save money by using an 800 number instead of cards

Most telecommunications cost management measures do not require any advanced knowledge of the services or billing. By taking time to review the phone bills each month and apply a little common sense, most people should be able to successfully manage their telecommunications services.

Inbound long distance
Inbound long distance has its roots in AT&T’s WATS, which was more of a bulk pricing service than a sophisticated telecommunications service. Nonetheless, In-WATS service could be used by a business to allow its traveling employees and remote customers to call in for free. The business being called that signed up for In-WATS service paid for the calls. This became a significant competitive advantage for sales organizations that relied on their sales to come from inbound phone calls. Consumers are far more likely to call a business with toll-free service than if they have to pay for the call themselves.

Because inbound long distance requires more of the carrier’s network resources, inbound long-distance rates are slightly higher than outbound long-distance rates. In general, inbound long-distance rates are one cent higher than outbound long-distance rates. As previously mentioned, most carriers charge a monthly recurring fee of $10 to $20 for each toll-free number. The higher rates and fees for inbound long distance ensure that the carrier’s additional costs for this service are covered.

The “ring to” number
When signing up for inbound long distance today, customers must tell the long-distance provider to which number they want the 800 number connected. 800 numbers are virtual numbers. They do not have physical wires assigned specifically to each 800 number. Instead, the calls come in across a regular phone line that is specified by the customer. This number is often called the “ring to” or “pointed to” number.

A small business with five local lines would probably choose to have its 800 number pointed to its main phone number. With a simple phone system, the person who answers the phone may not know if the caller is using the 800 number or not.

Change carriers for inbound long distance
Prior to 1993, if customers wanted to switch long-distance carriers for their 800 service, they would also have to change to a new 800 number. AT&T controlled most of the long-distance market at that time, and its rates were usually 5% to 50% higher than competitors’ rates. If customers wanted to change carriers, they would have to be willing to put up with the hassles involved with changing 800 numbers. If the number was used only by company employees, the change might not have been too cumbersome. On the other hand, if the number was highly publicized and advertised, the potential lost business could far outweigh the cost savings associated with switching to another carrier.

In 1993, 800 number portability was implemented. As a result, customers can switch their inbound long-distance service to another provider but retain the same 800 number. However, a change in the RESPORG must take place. To change carriers, the new carrier requires customers to sign a change of RESPORG form, which is then sent to the old carrier and serves as a request for the old carrier to release the 800 number.

All of the carriers cooperate nationally to keep track of who is responsible for each 800 number. Even local carriers participate, because they may be the RESPORG for a customer’s 800 number that is used only to carry intralata traffic. The carriers usually explain that they must charge a fee for each toll-free number a customer has so they can fund the national toll-free directory and database. The fees per toll-free number may be as low as $1 per month with WorldCom or as high as $50 per 800 number with AT&T’s MegaCom billing.