Low per-minute rate now available for calls to nearby areas

Economy Plans Offer New Way to Pay for Some Calls

March 31, 2004

As part of recent amendments to Maine's local calling area rules, the Maine Public Utilities Commission changed the way local telephone companies charge for some calls to nearby areas. Customers who have selected smaller “Economy” local calling areas, instead of larger “Premium” areas, now pay a per-minute rate for calls to nearby areas that were previously billed either at long distance rates or at a flat per-call charge.

This change is one of several made in December in response to consumer requests for larger local calling areas in many parts of Maine. The changes added all adjacent exchanges to local calling areas, giving everyone in Maine the opportunity to select a "Premium" calling plan that gives them the ability to make calls, without additional charges, to residents and businesses in all bordering exchanges.

In most areas, customers may also choose "Economy" service, which for a lower monthly charge enables customers to make calls at no additional cost within a smaller area. Under the new rules, Economy service carries a low per-minute rate -- 5 cents per minute – for calls to all of the communities included in the larger Premium area but not in the Economy area. Similar calls under the previous rules were charged either a per-call rate ranging from 25 cents to 60 cents, or in-state long distance rates (which in many cases were significantly higher than 5 cents per minute).

This change was made so that for those customers who opt for the Economy area, charges for calls outside the Economy area, but within the Premium area, will more closely resemble charges that might be assessed if a long-distance carrier were handling the calls, that is, they will be charged a per-minute rate.

According to Tom Welch, Chairman of the Maine PUC, “This change to a per-minute rate is fairer both to customers and local telephone companies, since under the old system short calls were overpriced, and long calls were under-priced.”

When choosing their local calling option, consumers should consider the number and duration of calls made to people who are outside the Economy area but within the Premium area. If the cost for these calls exceeds the cost difference between the Economy and Premium options, the Premium option is the more economical choice.

Consumers still have the ability to use prepaid calling cards at lower rates for these calls. If using a prepaid card, consumers should also ensure that the access number for their calling card network is toll-free. An 800 number (or equivalent, such as 866 or 877) is toll-free. A local number used for access to a long-distance network, however, is free only if the access number is in the caller’s Economy area (or within the Premium area, if the customer has chosen that option). Local access numbers in an Economy customer’s Premium calling area will trigger the 5¢ per-minute local access rate for Economy-to-Premium calls, plus toll charges from the long-distance carrier for calls placed on its network.

Some local telephone companies are itemizing these measured local calls so consumers can more effectively manage their local calling costs and determine whether they have made the right choice by selecting an Economy service area.

If you have questions about your local calling areas, or charges for local calls outside your Economy area, please contact the Maine PUC toll-free at 800-452-4699.