Long distance rates have nothing to do with distance.  For instance, typically a call from Phoenix to Tucson, Arizona is more expensive than a call from Phoenix to Canada.

There are four factors that determine the cost of long distance:

  • telecom consulting service providersWhere the call originates
  • Where the call terminates
  • If it’s dedicated or switched
  • If the call terminates on a land line or wireless phone

The main reason it’s more expensive to make a long distance call that terminates in the same state that it’s placed (intrastate long distance) is because the local phone company charges a surcharge for originating and terminating the call.

The most effective method to reduce the cost of long distance calling is to bypass the local phone company.

Dedicated long distance extends the handoff of an organization’s long distance calling from their location to the long distance provider’s point of presence, bypassing the local phone company.  The calls are cheaper because the per minute surcharge that the local phone company applies is avoided.  There is a monthly cost to the circuit required to circumvent the local phone company but it’s easy to determine whether or not it makes economical sense.

Another way to reduce the cost of long distance calling is to turn intrastate long distance calling into interstate long distance.  This is doable with converged networks (voice and data transmitted on the same network).  This process requires some engineering and would only make sense for organizations (typically call centers) that complete a substantial volume of intrastate calling.  It’s not difficult to determine the potential cost savings if you can quantify the amount of intrastate long distance calling you’re currently completing and your current intrastate and interstate long distance rates.

CarrierBid telecom consulting service has helped a number of organizations reduce the cost of their long distance.

If you’d like to receive more information on our method to turn intrastate long distance into interstate long distance please complete the form on the right side of this page.

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