It’s your
telephone.
It’s your
call.
A PSC Consumer Guide
www.AskPSC.com
Dear Consumer,
It’s your
choice.
Dear Consumer,
Telephone service competition holds many benefits for New Yorkers. Significant changes are taking place in the world of telecommunications.
Different companies are now competing to provide you with a wide range of exciting services, including Internet voice services, also known as Voice over Internet Protocol (VoIP). This is a technology that allows you to make telephone calls using a broadband Internet connection instead of a regular telephone line. This consumer guide provides suggestions on what to consider when choosing among companies, as well as answers to some of the most commonly asked questions. Garry A. Brown
Chairman, Public Service Commission
Consumer Assistance
Consumer Assistance
New York State Public Service Commission
3 Empire State Plaza, Albany, NY 12 223-1350
www.AskPSC.com
1-888-Ask-PSC1 For more information or if you have questions
1-800-342-3377 For complaints about your local, regional or other in-state telephone service
New York State Consumer Protection Board
www.consumer.state.ny.us
1-800-697-1220 For complaints about your local, regional or other in-state
telephone service, and telemarketing
New York State Attorney General
www.oag.state.ny.us
1-800-771-7755 For complaints about telemarketing
Federal Communications Commission
www.fcc.gov/ccb
1-888-225-5322 For complaints about your out-of-state, long distance telephone service or cramming
A PSC Consumer Guide
www.AskPSC.com
n
Local calling area
n
Local toll or regional toll
n
Long distance in-state
n
Long distance out-of-state
Types of Local Service
n
Traditional Wireline: (also known as landline)
This service uses in-ground and overhead cables to
transmit local and long distance calls. Traditional service
is a “fixed service option which means it can not be used
at any locat ion other than where it is originally installed.
n
Wireless: (also referred to as cellular or mobile)
Wireless telephone service provides many features of landline
while permitting the consumer movement over a wide area.
Calls are made using a combination of radio waves and
landline telephone structure.
n
Cable: Cable-based telephone service uses a cable
company’s network facilities to provide telephone service
with features similar to those provided by traditional
landline telephone companies. Like traditional telephone
service, it is generally considered to be a “fixed” service in
that it is intended to be used within limits of the original
connection location.
n
Internet: Internet-based telephone companies generally
use broadband connections (also referred to as “high speed”,
“cable modem” or “DSL” services) to provide telephone
service.
Service Options:
Know the difference
n
Basic local service generally includes dial tone that
allows you to make local calls, and to receive calls. Your local
calling area usually covers calls nearest where you live or
work. Local calls usually are not itemized on your bill.
n
Local toll or regional toll service (also called local
long distance or intra-LATA) covers calls outside
your local calling area, but within your regional
calling area. (There are seven regional calling areas in New
York State).
n
Long distance toll service covers calls that travel
outside your regional calling area, either within
New York State or out-of-state.
n
Other optional services can include caller ID, call
waiting, directory assistance, inside wire repair plans, and
special billing.
Make an
Informed Choice
n
What’s included in my basic local service?
For example, can I make an unlimited
number of local calls?
n
How many calls do I make in
a month?
n
Where do I call? (local, regional, in-state
long distance, out-of-state
and international)
n
How long do my calls last and what times
of the day and days of the week do I make
them?
n
Do I make most of my calls to talk
to others or to access the Internet?
n
Do I have any special calling plans and
what kinds of savings do I get?
n
What other optional services do I have?
n
Do I have a wireless phone, Internet
access, or a pager?
n
How much do I pay for all of these
services, individually and combined?
1. Identify what you have now.
First, look at your past bills and ask yourself these questions:
2. Determine what you want.
The next step is deciding whether you want different services.
Again ask yourself:
n
Do I want new services?
n
Do I want to discontinue any services?
n
Could I use special services, like Lifeline, or services for those
with hearing, vision or speech impairments?
3. Compare services and offers.
n
What services and features are included in
the offer?
n
Are these services offered separately or
packaged together?
n
Is the local calling area the same as I have
now?
n
Do I have to keep the service for a certain
amount of time?
n
Is there a charge if I cancel early?
n
When will my service be started or changed?
n
What will be itemized on my bill?
n
Will I be billed a flat rate, or some other
rate based on the number or length of my
calls?
n
Can I keep my current telephone number if
I switch to another carrier or type of service?
n
Will rates be different for local toll
(regional) calling, long distance calling
within New York and long distance to other
states? What is the rate for local calls?
n
Is there a monthly charge?
n
Will I be billed for a certain minimum
number of minutes/calls each month?
n
Is there a maximum number of minutes/
calls each month for which I can get the
quoted rates?
n
Are these special (introductory) rates that
will change?
n
Is a deposit required?
n
Is there a fee for switching or changing my
company?
n
Are there any other fees?
Now you’re ready to compare offers. Contact the companies
that interest you by phone or on the Internet. Consider the
questions below and use the worksheet on page 8.
4. Decide what to do.
n
You can keep your current company.
n
You can select a new provider. Contact the new company
and request information in writing.
n
Even after you make a decision, continue to check your
Q. Can I choose more than
one company for different
telephone services?
A. Yes. Many consumers
are now able to choose
different companies for their
basic local service, local or
regional toll service, and long
distance service. You may choose one or more
than one company to provide all your services.
Q. How can I make long distance calls?
A. To make long distance calls from most homes or
businesses, you can use your chosen long distance
company. You can also use a calling card (prepaid
or from a company that bills you), one of the
advertised “10-10” (“dial around”) services, or a
toll-free telephone number that connects you to a
specific long distance company.
Tip!
Some of the “10-10” companies only offer
plans that save money if you talk for a certain
length of time or make a certain number of calls per
month.
Q. Do all local service companies list their
customers in the telephone directory?
A. The telephone numbers of people or businesses
using traditional landline telephone companies
will normally continue to be included in the same
telephone book you currently receive. However, you
should be aware that if you considering wireless
or broadband telephone services, your number
may or may not be listed in the directory. If you are
considering switching providers, it is a good idea to
confirm their policies regarding directory listings.
Q. Can I retain my current telephone number if I
decide to switch local service providers?
A. Generally, if you switch from a traditional landline
service provider to another without changing your
address, you will be able to keep your existing
telephone number. If you are moving, you will
want to check with your new provider to see if
you can take your number to your new location. If
you switch to a wireless, cable or Internet service
provider, you should check first to see if you can
keep your current number. You should also check
the company’s policy regarding taking your number
with you if you switch back to your original provider.
Q. What company do I call for repairs if more than
one company provides my telephone services?
A. Call the company that provides your basic local
service, which is responsible for maintaining
service to your home or business. If you have a
problem with your other services, contact the
company that provides the service. Remember,
you are responsible for the telephones, inside
wiring, and jacks in your home unless you have a
maintenance plan with your telephone company or
an independent contractor.
Tip!
Before you call for help with repairs,
make sure the problem is with company-owned
equipment or facilities and not your phone or
inside wiring. Try the phone at another telephone
outlet in your office, home or neighbor’s home.
Q. How will I be billed?
A. Billing methods vary among companies. Ask each
company how you will be billed for services so you
know what to expect.
Q. Can I lose my basic local telephone service
if I do not pay other charges, such as long
distance charges?
A. No. You can only lose your local telephone service
if you do not pay local telephone charges. Failure
to pay other charges, such as custom calling
charges or long distance charges, may result in
the disconnection of those particular services.
Q. What should I consider if I want to use a
wireless phone instead of traditional telephone
service?
A. Currently, your address and/or apartment number
may not automatically be known by the emergency
operator if you use a wireless phone to dial 911.
Consider the quality of reception at your home or
business and the rates for calls and features. Also,
conversations on some wireless (and cordless)
phones can be overheard on other nearby
electronic devices.
Tip!
Using a wireless phone instead of a
traditional phone may save you money if you
move frequently.
5
Voice over Internet Protocol (VoIP)
Voice over Internet Protocol (VoIP)
Source: Federal Communications Commission Web site: www.fcc.gov/voip
Currently, VoIP services are not under the jurisdiction
of the New York State Public Service Commission.
If you have any problems or complaints about VoIP
services, you should contact the Federal Communications
Commission at 1-888-CALL-FCC (1-888-225-5322).
Because Internet Voice is digital, it may offer features and services that are not available with a traditional phone. If you have a broadband Internet connection, you need not maintain and pay
the additional cost for a line just to make telephone calls. With many Internet Voice plans, you can talk for as long as you want with any person in the world (if the other person has an Internet connection). You can also talk with many people at the same time without any additional cost.
What Are Some Disadvantages of Internet Voice?
If you’re considering replacing your traditional telephone service with Internet Voice, there are some possible differences. Customers should consider these differences when evaluating VoIP service options. • Some Internet Voice services do no t work during power outages, and
the service provider may not offer backup power;
• Not all VoIP services connect directly to emergency services through 911. It may be difficult for some VoIP services to seamlessly connect with the 911 dispatch center or accurately convey the physical location of the 911 caller or identify the
call as an emergency. For additional information, see www.voip911. gov;
• They may or may not offer directory assistance/white page listings; • If you cancel your VoIP service, you may be charged full price to return
to the local telephone company.
Can I use my Computer While I Talk on the Phone?
Yes.
Can I Take My Phone Adapter with me When I Travel?
You may be able to use your VoIP service wherever you travel as long as you have a high speed Internet connection available. In that case it would work the same as from your home or business.
Does My Computer Have to be Turned on?
Not if you are making calls with a phone and adaptor or special VoIP phone, but your broadband Internet connection needs to be active. You can also use your computer while talking on the phone.
How Do I Know If I Have a VoIP Phone Call?
It will ring like any other call.
Internet Voice, also known as Voice over Internet Protocol (VoIP),
is a technology that allows you to make telephone calls using a
broadband Internet connection instead of a regular (or analog)
phone line. Some services using VoIP may only allow you to call
other people using the same service, but others may allow you to
call anyone who has a telephone number – including local, long
distance, mobile, and international numbers. Also, while some
services only work over your computer or a special VoIP phone,
other services allow you to use a traditional phone through an
adaptor.
What is VoIP/Internet Voice?
VoIP allows you to make telephone calls using a computer network, over a data network like the Internet. VoIP converts the voice signal from your telephone into a digital signal that travels over the Internet, then converts it back at the other end so you can speak to anyone with
a regular phone number. When placing a VoIP call using a phone with an adaptor, you’ll hear a dial tone and dial just as you always have. VoIP may also allow you to make a call directly from a computer using a conventional telephone or a microphone.
How Can I Place a VoIP Call?
Depending on the service, one way to place a VoIP call is to pick up your phone and dial the number, using an adaptor that connects to your existing high-speed Internet connection. The call goes through your local telephone company to a VoIP provider. The phone call goes over the Internet to the called party’s local telephone company for the completion of the call. Another way is to utilize a microphone headset plugged into your computer. The number is placed using the keyboard and is routed through your cable modem.
What Kind of Equipment Do I Need?
A broadband (high speed Internet) connection is required. This can be through a cable modem, or high speed services such as DSL or a local area network. You can hook up an inexpensive microphone to your computer and send your voice through a cable modem or connect a phone directly to a telephone adaptor.
Is There a Difference Between Making a Local Call
and a Long Distance Call?
Some VoIP providers offer their services for free, normally only for calls to other subscribers to the service. Your VoIP provider may permit you to select an area code different from the area in which you live. This means you may not incur long distance charges if you call a number in your area code regardless of geography. It also means that people who call you may incur long distance charges depending on their area code and servic e.
Some VoIP providers charge for a long distance call to a number outside your calling area, similar to existing, traditional wireline telephone service. Other VoIP providers permit you to call anywhere
at a flat rate for a fixed number of minutes.
If I Have Internet Voice Service, Who Can I Call?
7
Explaining Fees, Surcharges and Taxes on Your Phone Bill
In addition to the charges you pay for the services you use, you’ll find various fees, surcharges, and taxes on your bill. The Commission has recommended that companies include thorough and detailed descriptions of all taxes, surcharges, and other fees on their web sites, including the purpose of each item, and routinely remind customers on bills that this information is available. Additionally, companies may link to the Department’s web site, www.dps.state.ny.us, where an appendix of taxes and surcharges is listed.
Common Telephone Terms
“10-10” (or “dial around”) Service – Dialing 1010
plus a three digit access code connects you to a specific long
distance telephone company. Charges for these calls appear on
your local bill.
Caller ID – This service lets you see the number, or
the name and number, of an incoming call.
Calling Card – This service allows you to place a local,
regional or long distance call, without the call being billed to the
telephone line you are using. Charges for calling card calls appear
on your regular bill. These cards can be obtained from phone
companies. Prepaid calling cards, which are paid for in advance,
prevent charges from showing up on your bill. These cards are
usually available from your telephone company, and at many
stores and other locations.
Call Return – This option allows you to call back the
last number that called you, whether or not you answered the call.
Call Waiting – This service lets you know someone else
is calling, when you are already on your telephone line,
by making a “beep” sound.
Directory Assistance – This service is provided by a
number of sources, including telephone companies, Internet-based
companies and other advertised directory assistance companies.
The service allows you to contact the company’s operator to request
the telephone number of a residence or business. Companies may
charge different rates for local and national listings and for call
completion, i.e. automatically dialing the requested number.
Lifeline – Discounted telephone services for qualified
low-income customers.
Number Portability – The ability of consumers to retain
their telephone number when switching from one telephone
service provider to another.
Three-way Calling – This service lets you talk to
two other people at different telephone numbers at the same
time.
Toll-free Numbers – This service allows callers to reach
your home or business and have the charges billed to the called
number. The call can go through without using an operator.
These numbers begin with area codes 800, 877, or 888.
Voice Mail – This service allows callers to leave
messages while you are unavailable without the need
for an answering machine.
Wire Maintenance Plans – These are optional repair
plans for the telephones, inside wiring, and jacks in your home
or business.
Wireless Telephone Services – These services include
telephones known as cellular, PCS or mobile phones. Services
also include pagers (“beepers”) that let you know someone is
trying to reach you, even when you are not near a telephone.
New York State Gross Revenue Tax Surcharge – This surcharge recovers telephone company expenses associated with mandated New York State Transportation and Transmission Corporation Franchise taxes. It is applied to all services except the E911 surcharge.
Federal Universal Service Fund Recovery Charge – The Universal Service Fund is a federal program designed to provide phone service and access to the Internet to schools, public libraries and rural health care facilities, and to subsidize local service to high-cost areas and low income customers. Telecommunications companies with interstate operations are mandated by the federal government to contribute to the Universal Service Fund. The Federal Communications Commission (FCC) permits companies to use the FUSF surcharge to recover their cost of contributing to the fund. E911 Surcharge – 911 has been designated as the Universal Emergency Number for all citizens in the U.S. to request emergency assistance. The purpose of the fee is to pay for the cost of such systems—consumers do not pay this fee in order to be provided with E911 service. A consumer has access to E911 whether or not the locality in which the consumer lives has imposed the charge. There is no per-call charge for calling 911. This surcharge is a flat fee, not to exceed $.35 per phone line per month within each municipality imposing the surcharge, other than New York City. The City is authorized to impose a monthly charge of up to $1.00. Lifeline customers are exempt from the E911 surcharge.
Local Number Portability Surcharge (LNP) – This charge pays for the technology that allows customers to keep their phone number, at the same location, when they switch from one local telephone company to another.
The FCC authorizes telephone companies to assess this monthly charge on a customer’s bill for a maximum of five years.
FCC Subscriber Line Charge (SLC) – This charge is also known as “Network Access Surcharge” or “Federal Line Cost Charge” on some bills.
The charge is a flat fee that customers pay to be connected to the telephone network. The charge is intended to cover a portion of the cost of your local telephone line, is added separately to local service bills, and recovers telephone company costs previously recovered from high toll rates.
Metropolitan Transportation Authority (MTA) Tax Surcharge – This surcharge recovers telephone company expenses associated with the mandated New York State temporary transportation business surcharge and applies to customers located in the New York metro area only. This surcharge
is applied to all services except the E911 surcharge.
Federal Excise Tax – The Federal Excise Tax was introduced in 1898 by the federal government as a temporary tax to support the nation’s efforts in the Spanish-American War. The tax revenue from this tax goes directly into the Federal General Fund. The tax rate is 3% and is applied to all local telephone services except installation charges.
State and Local Taxes – These are taxes paid by consumers and directly submitted to appropriate state, county, or city authorities. City school district taxes are also collected under sales tax law provisions. Taxes are applied to all intrastate services, except the E911 surcharge.
