With per-minute rates for long distance calls dipping as low as one cent per minute, it is becoming increasingly difficult for carriers, especially smaller ones, to compete fairly. A few have resorted to utilizing questionable billing practices, adding steep service charges, imposing monthly minimums or fail to provide promised service on prepaid usage. This series of articles will focus on methods that many local and long distance companies are currently utilizing to generate additional profits, at the ultimate expense of the consumer. We hope that this series will help to provide you with the information you need to make informed decisions about choosing your telecommunications provider. Sprint has no monthly minimums on usage, though all calling plans that the company currently offers include monthly service charges or fees.
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Long distance carriers claim that they have lost millions of dollars in profits, due to the fact that some consumers make only a handful of calls each month. In some instances, it actually costs long distance carriers more to bill a customer each month than it stands to make in profits. In these situations, the carrier loses money if its per-minute rates are not high enough. Typically, a carrier sets a minimum figure on monthly usage. What many consumers do not realize is the fact that some carriers impose these monthly minimums on a per-line basis.