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What was your phone bill last month?

Have you noticed that rates for both local and long-distance services are constantly changing? What will your phone bill be next month? All the big carriers are increasing their fees. To compete with changing technologies, phone companies are bundling local and long-distance services together with the usual phone features – for flat monthly rates in the $50 to $60 range.

These plans only save money for heavy telephone service users. Lighter users (which probably includes you and me) are stuck with other plans – the ones with the gradually increasing costs. Just a few months ago, AT&T added $3.95 a month to their 10 million customers still on the “basic” plan. Sprint added two cents a minute to two of its Solutions plans.

What about the so-called long-distance discounters? Most of these companies give very little service but charge less than 4 cents a minute, with no monthly fee. The problem is the weaker discounters have been dropping like flies. Will there be enough strong ones left to ensure competition? The market and the technologies are changing quickly.

What is taking so long for VOIP to go mainstream?


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