For as long as I’ve had a cell phone, long distance calls within the US has been free. I get about 200 prime minutes and 1000 weekend/night minutes for $30, no matter whether I call local or across the country.
However, it is only recently that I’ve seen free long distance for land lines. In my area, IIRC, it costs about $60 a month, including basic unlimited phone service. (I have the cheapie calling plan at home, it’s like $9 a month and I have to pay 5 cents for each local call, and I have no LD provider.)
So, why is it that cell phones are so far ahead of land lines in offering free long distance? Is it a marketing thing or a technical one?
That thought hit me when I first had internet access is 1993 (text only). I started thinking: “Why can I browse a website located in the UK that is included with my flat monthly rate, but if I call 50 miles down the road, it is almost a dollar per minute?”
I came to the conclusion that the phone company, being a monopoly (at least for local long distance at that time) where screwing us blind.
I remember in 1996, I was called by MCI and promised a 15 cents a minute long distance rate GUARANTEED FOR LIFE! My roommate asked how they could do that, and I predicted that within 10 years, there would be no such thing as long distances charges at all.
I think the problem is that the rate structure, which is regulated, often lags far behind technology. The telcos were charging people extra for touch tone service, long after it made any technical sense for it to be an extra charge. Many people still get ripped off for regional (intraLATA) long distance calls.
That’s part of it. The local telephone companies got their franchises by agreeing to provide “universal service” to just about anyone who could be hooked up to a telephone line. To pay for that, and keep basic phone rates affordable, there was only one way to go – charge through the wazoo for any kind of “optional” service. Long distance calls, caller ID, even extension phones at one time, they were all overpriced to keep basic phone service cheap.
I think we have to recognize that long distance service has limited bandwidth and telcos were concerned that demand could overwelm availability if there was no charge associated with the service. Years ago, travel was expensive and families who were separated might be tempted to open a connection for hours to have the feeling of “being there”. With IP, you don’t tie up a dedicated line like you do with landline telephone service.
I don’t get it… At the same time (1996), I remember there not being anyone who was charging more than 10 cents, and the prepaid cards were down to 8 cents or less. Why would MCI be trying to get people to switch to 15? Or is my memory just whacked?
I have a home phone plan that gives a certain number of long distance minutes, just like my cellphone plan. I don’t know how many, never using them up, since most of our calls are to family who have the same carrier, and thus all calls to them are free.
I think the difference is from the time that different companies did long distance. I even remember a time when it mattered when you called.
BTW, Arthur C. Clarke predicted unlimited long distance without regard for distance in about 1962.