Affordable Voice Communications Inc.
High quality long distance service at the lowest possible rates.
AVCInc does not use gimmicks. Some of the gimmicks other carriers use are:
The total cost of these gimmicks depends on the calling plan you are presently using. Most calling plans use 4 or more of these gimmicks. We can only estimate the average cost. For the average U.S. household (see statistics), this estimate ranges from $50.00 To $85.00 per year. The savings from the gimmicks alone is equivalent to receiving 4 to 7 free months of long distance service for the average household.
Per-Charge Rounding is the practice of rounding each individual charge before calculating a total. For example, suppose you make two toll calls of 1- and 3-minute duration each. Assume your rate is 13.5-cpm. The cost of each of these calls would be $0.14 and $0.41 with Per-Charge Rounding.
On average, every line item charge on your bill will cost you an extra half-cent. Across the U.S., for the average household, this amounts to $1.11 per year in extra usage charges and another $0.13 per year in taxes for a total of $1.24 per year.
AVCInc computes every charge to at least 6 decimal places and displays 6 decimal places on your billing advice. For the example above, the charges for the calls would appear as $0.135000 and $0.405000 on the billing advice. These unrounded numbers are used in calculating the total and in calculating taxes. The total is then rounded, which adds a half-cent per bill instead of a half-cent per line item charge. On average, this bulk rounding will cost you $0.06 per year and thus will save each household $1.18 per year.
Minimum Call Duration is the minimum amount of time that is used in calculating the charge for every call when the duration of the call is shorter than the minimum. Common Minimum Call Durations are 18-seconds, 30-seconds, 1-minute, and with some of the 10-10 services, they are 10-minutes and 20-minutes. For example, suppose you are using a calling plan that has a 1-minute Minimum Call Duration and you are paying 10-cpm flat rate. A 20-second call to an answering machine will be rounded to 1-minute and will cost you $0.10.
Across the U.S., for the average household, 33.3% of all calls are 1-minute or less. The average household is on a calling plan that has a 1-minute Minimum Call Duration and the same average household is paying $0.11 per minute. This amounts to $4.55, including taxes, per year for the average household.
AVCInc uses a 1-second Minimum Call Duration. Using the same average household as above, this will save you $4.52 a year.
Minimum Call Charge is the least amount you will have to pay for a completed call. It is another way of expressing Minimum Call Duration, except it is expressed in terms of money rather than time. The Minimum Call Charge is popular with the 10-10 casual calling services. For example, 10-10-811 has a $0.30 minimum per call with a 10-cpm rate, which is equivalent to a 3-minute Minimum Call Duration.
If the average household used 10-10-811 for their long distance, the Minimum Call Charge would cost them an extra $19.35 per year, including the extra taxes.
AVCInc has no Minimum Call Charges on its services.
Service Fee is a monthly recurring charge that you must pay regardless of whether or not you make any calls. For many 1+ calling plans you pay a Service Fee for the in-state plan, another Service Fee for the state-to-state plan, and a separate Service Fee for the international plan. Common Service Fees are $3.00 and $4.95 per month.
A Service Fee of $4.95 per month will add 4-cpm to every connected minute for the average household and cost $65.53, including taxes, a year.
For the 1+ service, AVCInc does not charge a Service Fee, thus saving you $65.53, including taxes, per year.
Off-Peak Promotions are generally reduced rates for state-to-state calls for some period of the week. Some Off-Peak Promotions begin Friday midnight and end Sunday midnight, or Saturday 7:00 am through Sunday 5:00 PM, or all day Sunday or some other defined period of the week. Usually, the gimmick has four parts, 1) the cpm you pay at all other times, 2) the monthly fee, 3) changing your calling habits to take advantage of it, 4) the word promotion, which means that it is for a limited duration or has a fixed ending date. When the promotion ends, you may be on a much more costly plan.
A few of the popular Off-Peak plans and what they would cost (excluding taxes, etc.) the average U.S. household are:
AVCInc gives you the same low rate all week long without any fees. For the average U.S. household, the 1+ state-to-state (before taxes, etc.) will cost you $3.53 per month. After considering the extra taxes you must pay, AVCInc will save the household $350.92 per year over Sprint, $27.28 over MCI, and $126.07 over AT&T, just for state-to-state calls.
Billing Increment indicates how often the clock ticks that measure the duration of your calls. It sounds simple, but the gimmick is that the clock ticks at the beginning of the period. For example, if you have a calling plan with a 1-minute Billing Increment, as soon as the called party answers, the clock ticks 1-minute and the instant your connect time reaches 60-seconds, the clocks ticks to 2-minutes, and so forth.
The 1-minute Billing Increment is very common on the low rate calling plans. Since the Billing Increment applies to every call, the extra cost per average household with an 11-cpm calling plan will be $13.66 per year including the extra taxes.
AVCInc uses a 1-second Billing Increment for all of its services. The 1-second Billing Increment cost the average household $0.10 per year including the taxes. The 1-second Billing Increment will save the household $13.66 per year over the 1-minute Billing Increment on an 11-cpm calling plan.
The Minimum Usage is the least amount of services you are obligated to pay for per month. The Minimum Usage does not include any regulatory charges (e.g., Emergency 911 surcharges, Telecommunications Relay Service surcharges, etc.) or any taxes (e.g., federal excise tax, state and local sales taxes, etc.), that is; you must pay these charges and taxes on top of the Minimum Usage. If you always use more services than the Minimum Usage amount, then the Minimum Usage will not add anything to your bill. Many telephone users realize their calling plan has a Minimum Usage when they go on vacation and they receive a bill that has a Minimum Usage line item.
Minimum Usage in long distance calling plans is very popular and $3.00 per month is a common Minimum Usage amount. For the average household, this will cost an extra $4.32 per year because 12% of the households do not make any toll calls every month.
AVCInc does not have any Minimum Usage on any of its services and thus saves its customers the $4.32 per year.
The Per-Call Surcharge is a fee that applies to certain completed calls according to a calling plan and is independent of the call duration. The most common Per-Call Surcharges are the 10-10 casual calling surcharge and the payphone surcharge on non-coin calls. The payphone surcharge is regulated by the FCC and is collected by every payphone operator in the country. However, there are carriers that impose their own Per-Call Surcharge on every call. This usually applies to casual calling and calling card calls and not to 1+ calls.
The casual calling service 10-10-345, for example has a Per-Call Surcharge of $0.10, referred to as a connection fee.
AVCInc does not have a Per-Call Surcharge on its 1+ Affordable Long Distance Service (ALDS). Affordable Calling Card Service (ACCS) and Affordable Toll Free Number Service (ATFNS) calls originating from payphones are subject to a payphone Per-Call Surcharge of $0.30 on all non-coin calls. This surcharge is paid to the payphone owner and the rate is set by the FCC for state-to-state and international calls and by the state regulatory commissions for in-state calls.
Peak, off-peak, evening, night, weekend, and holiday rate periods are the various rate periods used by other carriers to maximize telephone usage.
The peak rate period usually coincides with the normal local business hours and usually has the highest rates. Holidays, such as Christmas and Mother's Day, are also peak periods for residential telephone users and carriers take advantage of it. The following table outlines some of the popular weekday rate periods used by other carriers and the True Rates period used by AVCInc.
| Local Starting Hour of Each One-Hour Period of the Weekday | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AM | PM | |||||||||||||||||||||||
| M | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | N | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | |
| Others | Night | Peak | Evening | |||||||||||||||||||||
| Night | Peak | Evening | ||||||||||||||||||||||
| Off-Peak | Peak | Off-Peak | ||||||||||||||||||||||
| AVCInc | True Rates Period | |||||||||||||||||||||||
The cost of having various Rate Periods varies from carrier to carrier and from calling plan to calling plan. The AT&T 5-cpm weekend plan has the following rate periods and rates: peak is from 7am to 7pm, Monday through Friday for 25-cpm, off-peak is from 7pm through 7am, Monday through Friday for 10-cpm, and weekend is all of Saturday and Sunday for 5-cpm and will cost the average household $10.38 per month, just for state-to-state long distance.
AVCInc has just one rate period (True Rates) for all hours of the day and all days of the year. For the same average household, this will cost $5.59 per month. This saves the average household $64.38 per year after considering the extra taxes.
These Call Period Durations and Rates are:
Some carriers use the initial call period duration and initial call period rate method instead of the minimum call duration when the initial call period rate is different from a per minute charge for the same duration of call time.
The cost of a calling plan that uses the initial call period duration and initial call period rate is calculated the same as for minimum call duration. For example, there is a carrier with an initial call period duration of 1-minute and an initial call period rate of 32-cpm and with an additional call period duration of 1-minute and an additional call period rate of 28-cpm.
AVCInc does not use the initial call period duration and initial call period rate in specifying its rates.
Mileage-based rates are rates that vary based on the distance to the called telephone number. Rates that are mileage independent are called flat rate. Usually, the distances are divided into mileage bands such as 0 to 10 miles, 10 to 22 miles, etc. Each mileage band has a different rate.
Based on the statistics published by the FCC the mileage-based rates can be converted into flat rate equivalents for comparison of carrier rates. For example, Working Assets has a mileage-based calling plan (on Oct 18, 1998) that varies from 28-cpm for the 0-10 band up to 33-cpm for the 3001 and greater band. This can be converted to 29-cpm flat rate for comparison purposes. It is not known how many households are on mileage-based rate calling plans and we do not have an estimate of its real costs.
AVCInc uses only flat rates for all of their services.
Charitable and political contributions by carriers is a gimmick used to lure households into believing that the contributions are significant and a reason to use their services. Usually the rates with these plans are high. Contributions are usually in the range of 0.5% to 1% of the usage charges. In many cases, the household can make a much larger contribution directly to their favorite cause by subscribing to AVCInc and contributing their savings. When the household considers the extra taxes on the higher rates, they will usually discover that they are making a far greater contribution to federal and state governments through taxes than they are to their favorite cause.
If the household used a calling plan that charged 18-cpm and contributed 1% to a cause, the households contribution would be $2.98 per year while the extra taxes would amount to $26.02 per year. Of course, the household is also paying an extra 13.1-cpm over AVCInc which amounts to $242.86 per year, including the extra taxes savings.
AVCInc does not make contributions on behalf of their customers, thus allowing the household to directly contribute the savings of $242.86 to their favorite cause.
Multiple calling plans is the means by which carriers lock customers at fixed rates. Sounds as if the customer is getting protection against rising rates but, it doesn't. Carriers can raise rates on calling plans with a mere advance notice. In reality, the multiple calling plans protect the carrier from falling rates. They work as follows. When rates start to fall, the carrier creates a new calling plan with the new rates and publishes the plan in its tariff or price list. Later, the carrier puts a note in the tariff that it is not accepting new customers on the former calling plan. The carrier has no obligation to inform its customers that the old plan is obsolete and that there is a new plan with lower rates. This is how AT&T, MCI, Sprint, and many others have managed to retain many of their customers paying 28-cpm for state-to-state calls.
The real cost to customers on these plans is not known, but it has been reported in the news that over 35% of AT&T's customers are still paying 28-cpm for state-to-state calls.
AVCInc has one calling plan True Rates, and a commitment to our customers that it will be the only calling plan. When AVCInc can lower rates, and they will be going lower, the rate changes are put into the calling plan and all customers will automatically get them. As an AVCInc customer, you will not have to monitor the rates and have to ask to be put on a new plan with lower rates.
Calling plan names seem like they should be harmless to the consumer's bill, but consider how they are used. Usually, the plan has a basic theme name, such as AT&T's One Rate and MCI Worldcom's 5 Cent Everyday. When MCI offered the first plan of the series, it was called 5 Cent Everyday Savings, which charged 25 cents per minute for state-to-state calls during peak periods. Later, they offered 5 Cent Everyday Plus, which charges 7 cents per minute for the same state-to-state calls. Customers who signed up for the "Savings" plan can easily overlook the advertising for the "Plus" plan because they believe they are already on the latest 5 Cent Everyday plan.
AVCInc has no data to estimate what this gimmick is costing telephone consummers. We believe we are "tuned-in" to advertising tricks, and this one almost slipped by us.
AVCInc has a single calling plan, True Rates, and a commitment to our customers that we will never add another calling plan.
High usage surcharges usually come in the form of per-minute surcharges when the monthly volume reaches a certain level.
A surcharge of 2-cpm on monthly volumes of $500.00 or more with a peak period rate of 25-cpm and off-peak rate of 12-cpm, yielding an overall average rate of 15.3-cpm, would cost an extra $65.36 plus $7.85 in extra taxes per month. MCIWorldCom in Pennsylvania assesses this surcharge.
AVCInc gives discounts on usage over $25.00 per month. For the above example, the Customer would save the $73.21 in high usage surcharges and taxes and receive a discount of $20.00 plus $2.40 in taxes for a total monthly savings of $95.61.
Many carriers charge their business customers higher rates than they charge their residential customers. Unfortunately, it is the small business customer who gets hit the hardest because their usage does not earn them the special contracts with lower rates that the big businesses get. There is no added value for the business call over the residential call, that is, a telephone call is a telephone call, no matter who makes it.
Real statistics on business usage of the telephone is not compiled by the FCC and is tightly guarded by the carriers. AVCInc has reviewed the small business rates from several carriers and their rates are 10% higher than residential rates.
AVCInc offers the same usage rates and discounts to all customers, both business and residential. However, it should be noted that some charges, such as the Long Distance Access charge, are set by regulatory authorities and are higher for business telephones than than for residential telephones. Also, some taxing jurisdictions have higher sales tax rates for businesses than residents.
Long distance providers have started to adopt the mobile service gimmick of offering blocks of minutes for a monthly fee. While these can theoretically offer a good value, it doesn't always work out that way. On the one hand, if you don't use all the minutes, you still pay the same monthly fee so your effective per minute rate goes up. On the other hand, if you use more than the block of minutes, you pay a higher rate on those minutes above the limit. And how do you know how many minutes you've got left during the month or when you'll be away on business or vacation? With AVCInc's True Rates, you get a good rate all the time and pay only for what you use.
The Federal Communications Commission (FCC) publishes the report Trends in Telephone Service several times a year. The section Residential Telephone Usage provides statistical data on U.S. household use of the telephone. The data is summarized in the following four tables. Some of the numbers do not add up due to rounding. These tables are the basis for all analysis and comparisons by AVCInc.
The first table indicates the type, number and duration of the toll calls made by the average household. The table also indicates the percentage of households that make these calls.
| Toll Type | Calls | Minutes | Households | ||
|---|---|---|---|---|---|
| Number | Percent | Number | Percent | Percent | |
| IntraLATA-IntraState | 7.3 | 38.% | 39.0 | 27.% | 57.% |
| IntraLATA-InterState | 0.2 | 1.% | 1.4 | 1.% | 3.% |
| InterLATA-IntraState | 3.6 | 19.% | 26.0 | 18.% | 43.% |
| InterLATA-InterState | 7.1 | 37.% | 70.8 | 49.% | 68.% |
| International | 0.2 | 1.% | 1.4 | 1.% | 4.% |
| 800/900/Others | 0.8 | 4.% | 5.8 | 4.% | 12.% |
| Total | 19.3 | 100.% | 144.4 | 100.% | 87.% |
The second table indicates the distribution of calls by call duration. Notice for example, that 34% of all toll calls are 1-minute or less and 74.6% of all toll calls are 10-minutes or less.
| Duration in Minutes | Percent | Percent Equal or Shorter |
|---|---|---|
| 1 | 34.0% | 34.0% |
| 2 | 11.6% | 45.6% |
| 3 | 7.6% | 53.2% |
| 4 | 4.8% | 58.0% |
| 5 | 3.9% | 61.9% |
| 6 | 3.2% | 65.1% |
| 7 | 2.8% | 67.9% |
| 8 | 2.5% | 70.4% |
| 9 | 2.2% | 72.6% |
| 10 | 2.0% | 74.6% |
| 11-15 | 7.7% | 82.3% |
| 16-20 | 5.1% | 87.4% |
| 21-25 | 3.5% | 90.9% |
| 26-30 | 2.5% | 93.4% |
| 31-45 | 3.8% | 97.2% |
| 46-60 | 1.5% | 98.7% |
| Greater Than 60 | 1.2% | 99.9% |
| Average Duration | 8.7 | |
| Median Duration | 3.0 |
The third table indicates the distribution of calls over the periods of the week. Notice that 64.2% of the calls are not during the weekend and that 33.8% of the calls are during the weekday Peak Periods.
| Day | 7:00am-6:59pm | 7:00pm-6:59am | Total |
|---|---|---|---|
| Monday | 7.0% | 6.4% | 13.5% |
| Tuesday | 6.4% | 6.5% | 12.9% |
| Wednesday | 6.5% | 6.3% | 12.8% |
| Thursday | 7.2% | 6.4% | 13.6% |
| Friday | 6.6% | 4.8% | 11.4% |
| Saturday | 10.2% | 4.3% | 14.5% |
| Sunday | 13.6% | 7.7% | 21.3% |
| Total | 57.6% | 42.4% | 100.0% |
The fourth table indicates the distribution of calls by mileage and the average duration of the calls for each mileage band. This table is used to convert mileage-based rates to flat rates for comparison of calling plans.
| Mileage Band | IntraState | InterState | All | |||
|---|---|---|---|---|---|---|
| Calls | Minutes | Calls | Minutes | Calls | Minutes | |
| 1-10 | 7.3% | 4.2 | 1.5% | 4.2 | 5.0% | 4.2 |
| 11-22 | 30.5% | 4.9 | 4.5% | 5.0 | 20.2% | 4.9 |
| 23-55 | 33.6% | 5.6 | 7.0% | 6.2 | 23.1% | 5.7 |
| 56-124 | 17.3% | 7.5 | 7.6% | 8.4 | 13.5% | 7.7 |
| 125-292 | 9.3% | 8.9 | 16.1% | 9.8 | 12.0% | 9.4 |
| 293-430 | 1.6% | 9.5 | 9.4% | 10.9 | 4.7% | 10.6 |
| 431-925 | 0.3% | 10.6 | 24.8% | 11.7 | 10.0% | 11.7 |
| 926-1910 | 0.0% | n/a | 21.9% | 11.8 | 8.7% | 11.8 |
| Greater than 1910 | 0.0% | n/a | 7.3% | 11.2 | 2.9% | 11.1 |
| Average | 55 | 6.0 | 691 | 10.3 | 307 | 7.7 |
| Median | 29 | 2.0 | 493 | 4.0 | 61 | 2.7 |