Dial-Arounds

It sounds like an easy way to lower your long distance calls: just dial a few extra digits and start counting the savings. It's called an end-run and it entails going around your regular long distance carrier for the promise of cheaper calls. But does this extra dialing really pay off? CBS This morning consumer correspondent Herb Weisbaum has this report.

You probably have seen the dial-around advertisements encouraging consumers to dial 7 more numbers at the promise of cheaper long distance rates. But the fact is, says Weisbaum, there's no guarantee that a dial-around means a discount. Just because an ad promises a low rate does not mean that's what you'll wind up paying.

What the ads don't tell you is that dial-around companies generally compare their charges to the "basic" rates of the big long distance carriers. Basic rates are generally the highest rates. So if you are on any kind of special calling plan, chances are you are already paying less than the basic rate. In that case, your dial-around savings may be less than what is advertised. Often, Weisbaum warns, you might even wind up paying more [using a dial-around]than you currently pay [using your regular long distance carrier].

To know for certain the cost to use one of the many dial-around services, you need to read the fine print. Weisbaum's already done a little of the investigating for you and has these "finer points" to share:

• The Lucky Dog Phone Company promises calls for just ten cents a minute. The catch: there is a ten cent connection fee for each call. That means a one-minute call is not ten cents. It's double that.
• Use the Dime Line and you might expect to pay 10 cents a minute. But Dime Line has a 3 minute minimum. So your calls don't cost a dime a minute. Rather, the one and two minute calls are thirty cents a piece!
• In its ads, America One offers nine cents a minute for long distance calls. But once again, there's a catch. To get that low rate you will need to talk for at least 223 minutes a month. That's more than 3 and a half hours! Talk less than that and the rate jumps to 15 cents a minute.

And in general:

• Some of the low advertised rates do not take effect until you have been on the phone for ten minutes.
• Some companies charge a monthly access fee. This access fee may run as high as $4 or $5 and is charged even if you only make one call that month.

And don't assume that your long distance carrier has an axe to grin with the new dial-arounds. Many have responded by starting their own dial-arounds, says Weisbaum. The Lucky Dog Phone Company, for instance, is owned by AT&T and 10-10-321 is part of MCI. Something you wouldn't know from the ads, says Weisbaum.

So what is the bottom line? According to Weisbaum, The first thing you should do is make sure you're on a good calling plan, based on the type and amount of long distance calls you make. Believe it or not, most families are still on the basic rate plan with its higher prices. Once you've gotten the best deal you can from your regular provider, then you can compare the dial-arounds. But be sure to read all of that fine print! Odds are you'll find the extra dialing won't save you much, if anything.