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Long Distance Voice T1 - How it Works:
Local phone service usually includes long distance service. With this arrangement, when you make a long distance call, the call is transferred from the local provider to the long distance provider, and then the call is completed over the long distance provider’s network. Obtaining long distance service through the local phone company is very convenient for small volume users like residences and very small businesses; however, the price per call of this arrangement is relatively high, and is not efficient for medium and large businesses. The reason for this is that the local provider adds a significant per minute charge for each call it passes on to the long distance provider. A long distance T1 circuit bypasses the local phone provider so that the local provider cannot add to the cost of the call. This price reduction in combination with the lower costs included for higher volume calling results in up to 90% savings per minute.
The Fallacy of Unlimited Long Distance Plans:
Many phone companies advertise “unlimited” long distance bundles. In reality, virtually none of these companies actually provide unlimited long distance call usage. Most of these companies cater to businesses that they know will not have high long distance usage. For these businesses, the term unlimited long distance can be advertised because providers know that usage will be relatively low, so the usage caps that are almost always included in their contracts are never reached. If usage caps are never reached, then the customer has the perception that their long distance bundle truly is unlimited. However, if this customer starts a call center, or employs the use of auto dialers (which the provider knows will result in high volume calling), not only will the usage caps be enforced, but then the customer will be out of compliance with contract clauses which prohibit the use of auto dialers and call center usage. These clauses are included in the contracts required with virtually all “unlimited” long distance plans.
Long Distance Voice T1 Provides Unlimited Usage:
Long Distance T1 service almost always allows unlimited usage, because even though per minute charges are extremely low, they always include at least a small margin of profit for the provider. Thus, the more usage by the customer, the more profit for the provider. A win-win scenario.
The Fallacy of Free Unlimited Calling with VoIP:
There is an urban myth that VoIP calling is free and therefore, all long distance service with VoIP should be free. Unfortunately, most VoIP calls must pass through the PSTN (public switched telephone network) to reach the intended call recipient. All calls that utilize the PSTN cost money. Even though a call may originate with VoIP equipment, if it terminates with a user who has paid telephone service, there must be a charge for the call. Telephone companies are not yet in the business of working for nothing. There are charges for all calls which pass through the PSTN, whether they be a monthly or per minute charge. The only VoIP calls which are free, are calls which originate, transmit and terminate on private or virtual private networks. For example, if a company pays for a private bandwidth network whether it be nationwide, or worldwide, all calls conducted on that network, can be considered “free”. That is, if the cost of the network is not considered in the calculation of the call costs.
Long Distance Voice T1 Does Not Provide Free Local Calling:
Because long distance (LD) T1 circuits bypass the local exchange provider, free local calls cannot be provided with long distance T1. With LD T1, all calls, whether they terminate across the nation, or across the street, are charged as long distance calls. If a large volume of local phone calls need to be made, local T1 circuits can be purchased. If only a small volume of calls are local, the customer can purchase individual POTS (plain old telephone service) lines from their local provider.
Long Distance T1 Service Does Not Include DIDs (local direct inward dial numbers):
Because long distance T1 service is not intended for local calling, local telephone numbers are not provided with long distance T1. The only incoming calls which can be received via an LD T1 circuit are toll free numbers.
Long Distance Voice T1 and Toll Free Service:
Not only does long distance voice T1 provide great per minute prices for outgoing long distance calls, but the per minute price savings for incoming toll free service are extremely competitive as well. With high call volume, customers can qualify for prices as low as 1.2 cents per minute.
Long Distance Voice T1 Can Greatly Decrease Phone Bills for Customers with Local Phone Lines:
Most local phone service customers who pay more than $800 per month for long distance charges will usually save money by obtaining a long distance circuit. Most modern PBXs can distinguish between outgoing local and outgoing long distance calls. If an LD T1 is added, then all local calls are routed through local lines, and all LD calls are routed to the long distance T1 circuit. Long distance circuits usually cost about 75% less than local circuits. LD circuits usually result in lower usage of local lines because long distance calls no longer occupy local lines. Customers, who add LD circuits, can usually reduce the number of more costly local circuits required by their company. By doing so, not only are these companies saving significant amounts in per minute charges, but they also reduce monthly costs by replacing costly local circuits with less expensive LD circuits.
To check prices and availability for long distance T1, please use the pricing tool at the top of this page. Its free, real-time, easy to use and there is no obligation.
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