Trying to find a long distance phone company that is equipped to meet your business-calling needs, clearly defines available options, doesn’t charge you an arm and a leg, and offers good customer service when a problem arises is a lot like stumbling into an amusement park house of mirrors. With thousands of options to choose from, you might wonder if what you’re looking at is the real deal or a bad choice waiting to happen.

Doing your homework ahead of time is a must. Sure, you can just sign on to the long distance phone plan offered by your local carrier (that’s the easy way), but is that the best choice for the way you do business now? And what about the future needs of your growing company?

Before signing on the dotted line, you should:

1. Scrutinize current calling patterns, the number of phone lines you have and future needs.
2. Get advice from qualified sources.
3. Look into long distance phone carriers that also offer local plans.
4. Consider signing on with a separate long distance phone carrier.
5. Evaluate options for connecting via the Internet.
6. Determine what long distance calling features you need.

Action Steps
The best contacts and resources to help you get it done

First, evaluate your needs, then rate the long distance phone carriers

There are so many things to consider: what are your current calling patterns? What time of the day do you make most of your calls? Are your clients concentrated in a geographic area close to your company home base, or across the country or around the world? Do you use 3-way calling, call forwarding, call waiting, caller ID, speed dial, call screening or remote access? Are you a very small business with only 1-2 phone lines, or are you a fast-growing firm with 10 or more lines. What about future growth; where do you expect to be calling within six months? A year? Five years?

I recommend: Compare plans from long distance phone carriers by state and usage at Long Distance Analyst. Fill out the questionnaire at B2B-Exchange.com. Check out SmartPrice for a list of questions to help you decide. Use the free custom quote at PhoneSaver.com and review their long distance phone plan comparison chart too.

Scrutinize reputable long distance phone carriers

AT&T, Bellsouth, SBC, MCI, Qwest, Verizon, Talk America, Embarq — there are a lot of long distance phone carriers and an even more confusing array of plans that might work for you, you’re right. That’s why it’s important to review all the options that apply to your needs and are available in your geographic location before you make a final decision.

I recommend: Use the handy e-Wisdom guide to reputable long distance phone carriers to learn more about each company and the plans they offer. At this Web site you can also find long distance phone companies in your state ranked by average annual savings.

Consider a long distance phone carrier for your extended local area

Let’s say you’ve reviewed your present patterns and current and future needs, and what you want is a long distance phone plan that covers your metro area.

I recommend: Look into local access and transport area (LATA) services available from Verizon, AT&T (including their Unity Plan that bundles land lines and cellular service) and Qwest But don’t overlook the possibility that a competitive local exchange carrier (CLEC) might have lower rates. Look for one near you at this ISG Telecom site.

Opt for a stand-alone long distance phone carrier

There’s nothing that says you must buy local and long distance services from the same phone company. Look for a long distance phone plan that gives you the option of paying by the minute (be sure to ask how they define “a minute’) or a flat monthly rate. If you spend less than $50 a month on long distance, paying by the minute may make sense. If you’re currently spending several hundred dollars per month, you might benefit from a flat monthly rate that gives you unlimited calls.

I recommend: Look at plans available in your state from Verizon and AT&T. Use the Qwest Small Business Advisor tool to narrow your options.

Evaluate small-business services from long distance phone carriers

The major long distance phone carriers, recognizing the needs of small businesses, offer a variety of plans that might perfectly fit your needs.

I recommend: Check out Verizon’s Freedom for Business Plan for your state; it’s designed for small businesses with one location and fewer than 20 employees. You’ll find unlimited direct-dialed local calling, a flat rate on regional and local long distance calls (this can save you plenty if you make a lot of long-distance calls within the US), and the flexibility to easily add lines as your business grows. Review Verizon business products with this chart. Look into AT&T All In One Long Distance Service too. With affordable rates and a single bill monthly, this flexible plan is the right choice for the vast majority of small businesses with one or two locations. Small business communications services available from Qwest include a “Bundle and Save” option that lets you choose those features that work best for your business.

Look for a carrier that offers Internet long distance service too

As Internet connection speeds increase, competition is heating up in the newest arena of long distance phone service known as VoIP (Voice Over Internet Protocol). By converting the standard analog signals you hear when you talk on the phone into digital data that can be sent over the Internet, it’s possible to bypass phone company charges entirely.

I recommend: There are pluses (and a few minuses) to this emerging technology. Several companies offer service and some are rated higher than others. Compare price, features such as call-waiting, voice mail, caller ID, customer service ratings, long distance charges, initial set-up costs and overall ratings before you decide.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Make sure you understand how long distance calls are billed, by seconds or by minutes.
• •  Compare the features of package plans, but don’t rule out the benefits of making your own plan by melding together the best from more than one long distance provider.
• •  There are long distance agencies that represent many different carriers. Because of their overall volume, they can sometimes offer lower rates than you could get dealing with a long distance phone carrier yourself.
• •  Scrutinize contract fine print carefully. Pay special attention to cancellation penalties and restrictions.
• •  With reduced and even vanishing long distance cell phone rates, consider eliminating traditional land lines entirely. Here again, make sure that the cell phone plan you choose includes maximum benefits at a minimum cost.