Local Phone Service | How-to Guides for running your business from Business.com

Residential phone service in the United States used to be pretty predictable. AT&T, known as Ma Bell, was the de facto phone monopoly. Phones were indestructible, residential phone service adequate and prices, well, high.

The states and, later, the U.S. Congress took a hatchet to AT&T, ushering in a new era of competition — and confusion — for consumers. Ma Bell was busted into regional pieces. Prices for residential phone service generally dropped, Then a big telecom bill, the 1996 Telecommunications Act, raised the heat even more by forcing the "baby bells" to allow startups, known as competitive local exchange carriers, or CLECs, to sell connections on their lines or otherwise compete for local phone service customers.

If that wasn't enough, a rising tide of non-traditional alternatives, including wireless, cable TV and Internet telephone systems, has pressured the residential phone service industry even more. There are seven different ways to dial a simple, seven-digit phone number these days.

In this guide, we'll review:

1. A local phone service primer
2. Residential phone service and alternative providers
3. How to choose a CLEC for your local phone service
4. Long distance providers
5. Local and long distance phone combined

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

Choosing a basic local phone service

Choosing a straight-up local phone service is actually pretty easy. It's either the baby bell incumbent or a CLEC competitor. Generally, they offer the same service in the same ways, and even the same add-ons, like voicemail and operator services. Long distance providers usually work separately, although not necessarily.

I recommend: Several sites purport to offer head-to-head comparisons of local phone service providers, including Phone Dog and Connect My Phone. Be wary, though. Not all providers are listed in some areas. You can be thorough, too, with a WhitePages.com search for "local phone service."

Residential phone service, however, has many competitors

It's no longer completely necessary to go with a traditional wireline phone for your residential phone service needs. Cable and satellite TV providers, for instance, provide phone service, with some caveats: connections can vary in quality, and 911 service is still an issue.

I recommend: Among the most view cable systems in the country are Comcast, Time Warner, Cox, Cablevision Systems, and Charter Communications. If you have cable and don't like their phone offer, Vonage, Packet8 and Sunrocket are alternatives which use existing Internet to connect your phone.

Figure out if your local CLEC will work for you

Not all of the CLEC companies are equally well-managed. In fact, many went broke after the 1996 law changes because they were able to chase customers without first making investments.

I recommend: It can help to talk with local business owners about billing and customer service before making a decision on residential phone service. Since nearly any group can apply to operate a CLEC, even universities and towns, there are literally thousands. See the complete list of CLEC's registered with the Federal Communications Commission by selecting "CAP/CLEC in the search box.

Long distance providers are hungry for your minutes

One of the advantages of the long-ago AT&T break-up was the creation of a competitive national long-distance market. Rates have fallen as major carriers have jumped to soak up customers.

I recommend: Some of the bigger long distance providers include MCI, Verizon, Sprint, AT&T and Qwest. Take a look, too, at the Business.com directory page on local and long distance phone and long distance providers.

Local and long distance phone bundles save money

Usually, the strategy is to find the best local phone service you can from a CLEC, or see if you can "bundle" residential phone service with other services from non-CLEC providers, like adding Internet, wireless, long-distance or pay television.

I recommend: Such "triple play" bundles (quad play if you add in a cellular phone plan) can get you lcoal and long distance phone service more cheaply than separately in most cases. See bundle offers from big providers like Verizon, Comcast and AT&T.

Tips & Tactics
Helpful advice for making the most of this Guide

There's no good reason to fear your local CLEC. The telecom bust shook out most of the weak companies, so if a friend tells you the experience has been good, it probably is.
Triple play offers from local and long distance providers can be full of hidden fees and long-term contract language. Be sure to measure each offer against its true, full cost, including taxes, and compare it to ordinary long distance providers.
The best local phone service is the one you will actually use. Web-based telephony is cheap, but hardly a comforting experience (you have to fire up a computer, check the microphone, etc.). If you make a lot of long-distance calls, consider a flat-rate plan to a single number or country for local and long distance phone service.

The official source of Local Phone Service is the Local Exchange Carriers page at Business.com

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