Telephone Service Providers: Charges & Incentives

• Monthly fees/subscriptions

• Initial connection fee or set-up charges

• Inclusive calls

• Minimum charges (per call)

• Connection fees (per call)

• Charge Unit

• Additional equipment costs

• Payment methods/options

• BT 'Best Friend' & 'Friends & Family 'including GOLD & Overseas Discounts

• Call Discounts/Benefits (including Call Allowances & package benefits)

Key terms, including definitions of destinations and time bands are dealt with in another section.

This includes any additional cost of subscribing to the Service Provider, including any costs for itemized billing. More recently providers are offering 'FREE' calls for a monthly subscription fee, such as BT Talk Together. It is very important to read the conditions and limitations of these calls.

This includes the cost of all set-up, equipment purchase (including phone purchase or rental) and connection fees. These charges can apply to both direct (new line, phone etc.) and indirect service providers (some charge for Smart Box/Adapter/Phone purchase or rental). You may also be expected to pay for additional 'Smart' equipment for extensions throughout the house.

Many tariffs include a call allowance to specific destinations - often as part of a monthly package. Some limit the calls to users of the same telephone service provider.

The minimum amount that you have to pay for each call made, irrespective of the length of the call. Some providers charge different amounts for UK landline, mobile and International calls. This is in addition to any connection fee. For example, one indirect telephone service provider charges a minimum of 33 pence for calls to mobile phones even if you only leave a brief message!

This is a one-off charge for using the provider's network and is in addition to any minimum charge!

The time interval that you are charged for, after the call cost has reached the minimum charge.

Many Service Providers allow access via a code (typically 3 or 4 digits), which you can programme into the memory of your phone. In some cases you MUST use their equipment even though you still need a BT (or other direct service provider's phone line). In these circumstances, there is the potential that you may not use some or all of the 'Inclusive Calls' provided by BT or the other direct service provider.

Pay Upfront: You need to pay for the calls before you can use the service. Some offer cheaper rates for higher credit. You may also have to agree to an automatic top-up when your credit falls below a predefined level.

Pay in arrears: You pay for your calls after making them and receiving a bill (either monthly or quarterly). Many offer direct debit facilities (some give a discount if you use this service).

Several providers set-up the direct debit the same way as for gas and electricity direct debits i.e. with a fixed monthly rate that is adjusted based on actual usage. This can lead to significant variances between actual usage and amount paid, so you need to keep a close eye on these type of direct debits.

BT 'Friends & Family' & 'Best Friend' discount schemes are free to join. Simply call 0800 800 150. BT 'Friends & Family' offers a 10% discount to 10 nominated direct dialled numbers, including 1 mobile and 1 international number. BT 'Best Friend' gives an additional 10% discount i.e. a total of 20%, to one nominated number from the 10 above, but excludes any mobile or international number. You can see the amount you save each quarter under 'Call Discounts/Allowances' on your BT telephone bill.

'Friends & Family GOLD' is only available on certain packages such as BT Working Together & BT Working Together Talk, where you pay an additional monthly fee. You can nominate up to 15 numbers to receive a 10% discount (5 more than 'Friends & Family'). Furthermore, you can select any mobile or international numbers without restriction.

'Friends & Family OVERSEAS' is only available on certain packages such as BT Together & BT Talk Together, again with an additional monthly fee. This gives a 10% discount on all calls to 6 overseas numbers.

The Call Discount/Benefit is made up of the sum of:

'Friends & Family' discount (including 'Best Friend' & 'Friends & Family GOLD', where applicable)

PLUS your 'Call Allowance' (equivalent to £6.45 of qualifying calls per quarter as of 01 November 2001)

AND your 'Package Benefit' if applicable (applies to certain packages with an additional monthly fee, such as BT Together).

Business users: For a FREE, confidential, 'No-obligation' quote.

Residential users: With so much information to get to grips with why not simply provide us with your telephone calling patterns and we'll find the CHEAPEST and BEST telephone service provider that matches your usage? AND with our RISK-FREE guarantee, you can't lose. SAVE money on your telephone bills or get the information for FREE!