Thursday, February 10, 2011

Going the distance with intralata rates

Intralata refers to calls that terminate outside the  local calling  area  but within your  local access and  transport area  (LATA). Unfortunately, most people don’t  know the  boundaries of either their local calling  area  or their LATA. If they  did know, they  could manage their intralata calls and charges much better.


It used to be that if you leased an access line from the  LEC, they  automati- cally became your  toll-call  carrier. Today,  customers can choose what carrier they  want  for calls made outside the  local calling  area.  If you don’t select an intralata carrier when  you begin  the  lease of your  local access line, though, you automatically inherit the  LEC as your  intralata carrier.



Say you’re  in Pittsburgh and  are calling  your  son,  who is at school at Penn State University’s local satellite campus eleven miles away. Such a call crosses local calling  areas within the  Pittsburgh LATA, making  it a call in the  intralata service category.

First the  call goes  into your  carrier’s nearest switching facility. Based on the area code and  prefix of the  number you dialed, the  call gets  routed over the  PSTN to the  carrier’s destination switching facility. From there, the call is sent over  the  PSTN to the  facility and  switch that terminates your  son’s line. Then  the  call goes  to your  son’s line and  the  actual telephone attached to his line
in his dorm room. The telephone rings,  and  when  your  son  answers the phone, a session is established for the  call’s duration. As a consumer, you pay a hefty  per-minute charge for this  type  of intralata call.

Intralata calling  for consumers is expensive in comparison to local calling rates. Also, consumers have  little choice in intralata calling  plans. It’s always a per-minute rate that can change as the  distance between endpoints involved in the  call increases or the  availability of carrier facilities increases outside the  local calling  area.  If you or your  company plan  to stay  on POTS- PSTN telephony, ask your  carrier to give you (in writing) the  boundaries for each of the  five regulated service categories.

For example, the  call to my son  is a higher rate than the  call to my doctor in a suburb of Pittsburgh, even  though this  suburb is farther away. Why? The call to my son  must travel over  rural areas where the  carrier has  less up-to-date facilities and  must use more  expensive, slower, alternate routes.

But both calls would  usually be less  than a call to Philadelphia, which is still in the  state of Pennsylvania but  farther away from my local calling area than either my doctor or my son’s campus near Pittsburgh. The cost of a POTS call usually increases for the  consumer based on the  distance of the  call — out- side  the  LATA. For a business using  POTS, it may increase, be a flat rate, or be free, depending on what  type  of service level agreement exists between the  business and  the  carrier.

Intralata calls are carried the  same way for consumers and  businesses, but businesses can negotiate intralata rates with their regional (that is, intralata) toll carrier. (Consumers can merely  select a carrier and  live with the  per- minute rate they  are assigned.) The carrier can offer businesses a bundled deal  based on the  anticipated yearly  volume of minutes and  the  amount of minutes the  company is willing to commit to.

Carriers can offer business customers flat nonrecurring rates. For example, they  can offer a flat rate per  call with no recurring minute charges. In this  way, the  carrier is selling  intrastate carrier services like the  LEC sells  local carrier services. Sometimes you can fashion a long-term deal  based on the  monthly volume of call minutes. Because carriers are eager to get longer- term contracts, they  make those deals look very attractive. But don’t  bemisled: Rates  and  call volumes change over  time.  If you’re  locked into a long- term deal,  it may not  look like such a deal  after  several rate hikes.

If your  company fails to reach the  projected volume it commits to in a monthly, yearly,  or even  longer-term deal,  you’ll usually incur penalties. Make sure  you check the  fine print on any agreement.

How can VoIP help  you with intralata charges? It varies depending on whether you are a consumer or a business. If you are a consumer, you would  enter into an agreement with a VoIP carrier. You would  pay a flat charge per  month to call anywhere outside your  local calling  area.

If you are a company with multiple locations in and around one or more LATAs and your locations are connected with a VoIP network, all the calling that  goes  on between these various locations is free of recurring carrier service charges. When one location needs to call someone off-net at a distant location, the call can be carried on-net  as far as possible before it goes off-net.

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