Today, there are many different long distance rate comparison sites on the web, many offering inaccurate and/or false information to you. There are several reasons for this, some of which I will help you recognize ahead of time so as to avoid a costly mistake.

Almost all sites state they offer the lowest rates, which in reality most DON'T.

Most long distance providers offer service through independent agents. As with AT&T, MCI and Sprint, the smaller long distance companies usually offer multiple plans for you to choose from.

An independent agent makes a larger commission when you sign up for a higher rate plan then if you were to sign up for a lower priced plan. On a higher rate plan, an agent might make 20% + commissions while on the lowest rate plan; commissions can be 4% or less to the agent. Hence, most agents will not offer you the lowest plans available thus dictating which plans you can view.

Don't try to tell the customer what he wants. If you want to be smart, be smart in the shower. Then get out, go to work and serve the customer!
Gene Buckley , President, Sikorsky Aircraft

Some agents offer affiliate programs that are MLM (multi-level marketing). The lower priced plans DO NOT have enough padding in the commissions to support their pay out structure; hence they cannot offer you the best rates.

Some sites offer a particular rate however when signing up the rate can be higher. This is because the rate advertised is for RBOC territories only. Outside these areas they charge a higher rate. One Comapny, IDT offers 5 cents per minute, however this is within the RBOC. Outside the RBOC, IDT charges 5.9 cents per minute.

Many comparison sites do not include the Universal Service Fee (USF) which is applied to State to State and International calls. This truly gives an inaccurate comparison.

The maximum USF rate a provider can charge is set by the FCC guidelines. The Universal Service Fee rate is usually reviewed by the FCC quarterly. However some companies add other unregulated fees and taxes (i.e Network Access Fees, Carrier Fees...) which can dramatically add to your long distance phone bill. By not including these other unregulated fees nor USF rate you are not recieving an accurate comparison.

Some sites display your monthly or annual savings as a sales pitch.

These sites base this off the assumption you are paying approximately 17¢ (MCI Basic Plan) to 30¢ (AT&T Basic Plan) InterState rates. They then take the difference from the plans they are offering you and state this will be your monthly or annual savings. These are inaccurate assumptions for most of us. After all, you already know what you are spending per month.

The long distance industry is one that is constantly changing and many sites are lax on keeping up to date with these frequest changes. It is vital to use a site with accurate up to date information in order to compare apples to apples or you maybe in for a shock when your first bill arrives. I personally see to it that Wizard Communications is kept up to date and accurate, offering consumers the lowest rates plans offered by each of the reputable providers.

At the time this book was revised, I personally knew of several small and large comparison sites that have incorrect USF fees, missing new area codes thus giving a telephone number input error and even display providers only available in the RBOC coming up in NON-RBOC area results as available. I also noticed just recently some sites offering a lower rate on some IntraState rates then what the consumer is actually charged.

And remember… be careful out there.
Hill Street Blues - TV show.