Many consumers are now able to choose both local and long distance phone service providers. These companies offer many optional services such as voicemail, call waiting, caller ID, paging, and wireless services.

Think about how you use the telephone, then you can compare services and prices. You might choose a package deal from one company or services from several companies.

• Who do you call most often?
• What time of day or day of the week do you call?
• Do you want to get messages and if so, do you need voicemail or will an answering machine do?
• Do you need call waiting and/or caller ID?
• How important is it for you to have your telephone with you when you are away from home?

Find out how each company prices its services. Are there minimum-use, time-of-day or distance requirements; flat monthly fees; or special plans? For example, wireless service may be cheaper than regular local service if you don't make many calls.

Make sure you're comparing prices on similar plans and features. The nonprofit Telecommunications Research and Action Center (www.trac.org) offers information about long distance rates and wireless service.

The FCC offers consumer information about choosing a long distance carrier, understanding new phone fees and taxes, and more at www.fcc.gov/cib. The National Consumers League also maintains a web page (www.nclnet.org/phonebill/index.html) to help you understand phone charges and recognize fraud.

Compare plans and rates at SaveOnPhone.com, LowerMyBills.com, and ABTolls.com. Another website, 10-10Phonerates.com, focuses on rates from 10-10 dial-around long-distance services.