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The lure of 10-10 numbers
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June 10, 1999: 8:47 a.m. ET
Dial-around long distance has perks, but regular plans are often a better deal
By Staff Writer Nicole Jacoby
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NEW YORK (CNNfn) - The ads are hard to miss. On television, in the mail and on the radio, phone companies tout 10-10 numbers as the cheapest and most convenient way to place long distance calls.
But getting the best value out of these dial-around services may require more than a few taps on your telephone keypad, according to some consumer advocates.
"In a lot of cases, people don't save money," said K.C. Choi, senior research associate at the nonprofit consumer-oriented Telecommunications Research & Action Center. "There are a lot of fees and people don't realize there is a potential to get ripped off."
A new path for long distance
Dial-arounds exploded onto the scene about two years ago, now earning about $2 billion annually, according to Consumer Action. The watchdog group estimates nearly one in five Americans has used a dial-around to make a long distance phone call in the past year.
Unbeknownst to many consumers, dial-around services are run by both major carriers and smaller start-up companies hoping to cash in on the profit potential of the deregulated telecommunications sector.
Some of the more widely-advertised 10-10 services include Lucky Dog's 10-10-345, which is owned by AT&T, and MCI's 10-10-321 and 10-10-220 operations. Other big-name companies vested in the dial-around business include Qwest, Cable & Wireless, and Excel Communications.
These companies' motivation for offering dial-around services is two-fold, according to Choi.
For one, 10-10 numbers enable larger phone companies to woo customers away from the competition without asking them to switch their full-time carriers. In addition, says Choi, many larger carriers hope dial-around numbers will promote overall phone use, as customers increasingly equate long-distance calls with savings. Increased long distance use means more profits for all telephone companies involved.
Watching for the catch
A wide range of conditions often accompany dial-around services, so whether these phone services really translate into big savings depends on how vigilant consumers are willing to be.
For instance, many dial-arounds, such as 10-10-321, have a minimum talking time. Such deals may require you to speak for a specified block of time, say ten minutes, before the discounted rate kicks in.
If your call lasts more than the required minimum, you've got a bargain. But if an answering machine picks up or the person you're calling is unavailable, you may be charged as much as 30 cents a minute for not meeting the minimum requirement.
Other dial-arounds offer one rate for calls up to a certain length. A call up to 20 minutes using 10-10-220 will cost 99 cents, for instance, and is a good deal by any measure. But you will pay 99 cents even if your call only lasts one minute.
Additionally, some dial-arounds, including 10-10-502, 10-10-297 and 10-10-432, charge a Universal Service Fee that you will also be charged by your long distance carrier. If you use these dial-arounds, you will be paying these fees twice every month.
Finally, many dial-arounds, such as 10-10-502 and 10-10-566, charge a monthly fee, usually around $4.95. Before using these numbers, make sure the monthly fee does not offset any savings you might achieve by using the service. Remember you will be charged this fee even if you only use the service once.
Working the savings
But there are ways to work the dial-around system, concedes TRAC's Choi.
If you know your call will last more than ten minutes, for instance, a dial-around with a minimum talking time, such as 10-10-321, or a plan that offers a flat rate for up to a certain number of minutes, such as 10-10-220, may be worthwhile.
In addition, if you spend more than $25 a month on long distance, a dial-around with a monthly fee could be beneficial, as these plans' low rates could offset the monthly expense.
International perks
Dial-arounds can be particularly advantageous when it comes to overseas calls.
"Using 10-10s to call internationally can be a bargain if you are careful about monthly fees," said Linda Sherry, spokeswoman for Consumer Action. "Many of the pre-subscribed international calling plans offered to residential customers by primary carriers have somewhat higher rates and charge a monthly fee."
A study of sample overseas calling rates by Consumer Action earlier this year found that per-minute rates to France ranged from 13 cents to 32 cents on 11 widely-advertised dial-arounds. But flat rates, which require minimums, could be as high as $1.99, even if the call lasted less than 10 minutes.
Another survey of rates on calls to Latin America found similar savings, with calls to Mexico as low as 29 cents a minute on some carriers.
The key to international savings is price-checking with the customer service departments of each of the 10-10 companies. Be very specific about the countries and times of day you call and compare quotes carefully with the deal offered by your regular carrier.
"They may have a great price for Mexico, but a terrible rate for someplace else," said Sherry.
With all dial-around companies, bear in mind that monthly fees may bolster the overall cost of your calls.
The cost of inconvenience
In addition to savings, you may want to consider convenience when using a dial-around number.
"These plans can be a hassle to use. You have to dial seven digits before the number you wish to call for a total of 18 numbers," Sherry said.
You'll have to remind every member of your household and your guests to dial the proper 10-10 code or your primary long distance carrier will handle the call. Luckily, most 10-10 companies supply consumers with reminder stickers for their phones with the codes on them.
Making first rate decisions
When assessing any type of prospective calling plan, you should have a strong sense of what your long-distance calling habits are.
A look at your last three billing statements should give you a pretty good idea of how many calls you make, what time of day you make them, and what cities they are directed to.
Your carrier should also be able to tell you what type of plan would work best for you based on your calling patterns.
Compare that plan with services offered by a dial-around. Consumer advocates and some major carriers agree that most consumers are best served by choosing a calling plan that accommodates their regular long distance needs. But in some cases, a dial-around may compliment the rates offered by your regular carrier.
Be careful of using a wide range of dial-arounds, as cumulative fees and minimums may add up.
Consistency is key as well. If you haven't signed up with a discount calling plan with your primary caller, you could end up paying the highest long distance rates of all if you forget to dial the code.
If you are set on using dial-arounds exclusively, it is possible to request that a long distance carrier not be assigned to your phone line, avoiding related fees in the process.
But keep in mind that your long distance carrier generally provides services like long distance directory assistance and calling cards, and you may have to pay extra for these services down the line. 
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