Cheaper phone calls there for the taking

By DIANA CLEMENT

Hands up anyone who loves throwing money down the drain. None of us do. Yet, thanks to apathy, 90 per cent of people who make international phone calls are doing just that.

The reality is that you can, if you're canny, make a 10-minute call to Australia for the cost of a one-minute call to your mate's mobile down the road.

Fact: A three-minute call to England at peak time with Telecom costs $1.95. The same call using an Econo Phone Card costs just 24c.

Fact: You can make a two-hour call to Australia with WorldxChange for $1.85. The same call with Telecom could be made only off-peak and you would pay $4.

Shopping around isn't an easy task. It's unlikely you'll ever find the Holy Grail from the dozens of offers without stressing your heart valves.

But don't get too hung up on finding the ultimate deal. Even a 30 per cent saving is better than none.

Contrary to popular opinion, getting a better deal doesn't involve ditching the much-loved capped-rate calls that have won the hearts, minds and pockets of New Zealanders.

Lots of companies offer capped-rate calls at cheaper rates than Telecom, some with fewer strings attached.

The bad news is that weighing up the various offers is like comparing apples and oranges, and you need to understand intimately your call profile to get the best deal.

Put simply, your options include: direct dial, coded access, internet-based calls and pre-paid phone cards.

Direct Dial

With direct dial your international calls are automatically routed at the exchange to your choice of provider.

You can choose to have one provider for all calls or different ones for local, national, international and landline-to-cellphone calls. The alternative providers include TelstraClear, ihug, SlingShot, WorldxChange and many others.

Benefits: You get cheap calls via your phone line without the need to dial prefixes or lengthy access codes.

Downside: You may end up with more than one phone bill.

Coded Access

You simply punch in a four-digit code before dialling your number to route your call via your preferred operator.

Benefits: You can use more than one operator to call different countries or services.

Downside: It can be difficult to remember the prefix or convince the people you live with to use the service.

Pre-paid phone cards

Pre-paid phone cards from providers such as KiaOra Card, Yabba, Econo Phone, ChiTel, Go Call, Meihua and WorldPhone are usually sold in $5 or $10 amounts from dairies. Most of the cards require you to call an "access" telephone number and then punch in your PIN, before dialling the number you want to call.

Benefits: These cards can be used from any phone in New Zealand.

Downside: Many of the fantastic deals on offer disappear into thin air when you read the fine print.

Some charge you extra to access via a mobile or the company's 0800 number - which you will have to do if you're not in one of the main centres. Others charge a connection fee.

Line quality can be poor due to the compression of too many calls down one line.

Internet telephony

Internet telephony or Voice over Internet Protocol (VoIP) allows you to talk over your internet connection.

The simplest way to do it is to use a chat program such as MSN Messenger, Yahoo Messenger, Netmeeting, or Skype with a microphone, speakers and possibly a web cam attached to your PC. But you'll be able to chat only to others who are signed up to the same service and online when you call them.

Benefits: Internet telephony is free once it's set up.

Downside: There can be a loss of quality and a time delay in hearing the other person. A Skype call, for example, uses around 1Mb per minute, which if you're over your broadband cap, costs.

Other VoIP services

Even if you haven't got the computer equipment and know-how for true VoIP, you can make cheap web-based calls using providers from overseas. British-based EasyVoice charges 3p (8.5c) a minute for calls from New Zealand to Australia or Britain. To make a call you either text-message the company or type in the number you're calling on EasyVoice's website. Your phone then rings with an in-coming call. You pick up the handset and your call out starts ringing.

Benefits: It's cheap.

Downside: Unless you've got broadband or two lines you'll find it cumbersome to disconnect from the internet each time you make a call. The line quality is sometimes poor.

So why don't more people switch?

If you make overseas calls you'd be nuts not to shop around. Yet 90 per cent of all international calls are with Telecom.

Telecom customers are a brainwashed bunch. Many believe the only provider with one bill for local, national international and internet calls is Telecom.

Others think that Telecom's competitors offer a poor-quality service.

Yet the reality is that TelstraClear, Slingshot, WorldxChange and others offer one bill for all services and good line quality.

In its favour, Telecom also offers Fly Buys and the Schools Connection programme.

Not all services are the same. Some such as ihug and Telecom charge by the second after the first minute - a definite money-saver.

With services such as GI, you must choose between by-the-minute and capped services. With Telecom and SlingShot, however, you will be charged only the number of minutes you speak for up to the capped rate and then no more until you hit two hours.


There is no harm in trying another provider. Few make you sign a contract. So you can simply use up your card or pre-payment and vote with your feet.

Finally, people make the mistake of thinking that cheap services are for overseas calls only. You can save by using them to make national and cellphone calls as well.

For contact details of alternative telecoms providers visit Pipers New Zealand Pages.

Operator websites:

Telecom

Telstra Clear

Slingshot

Ihug

GI Tolls

EasyVoice

Kia ora phone cards

Chi-tel