Small organizations, many of which until recently used dial-up services for Internet access make up the largest percentage of commercial customers. Moreover, they often use sophisticated services. According to industry statistics, 30% of them use toll free services and many use audio and Web conferencing. It is no surprise that carriers, battered by competition, are promoting bundled packages with Internet access and calling services to small businesses. They hope to sell higher margin services such as audio and Web conferencing and local lines along with lower margin long distance.

MCI, Verizon and Conversent
The above three carriers offer unlimited direct dialed long distance services. Verizon Communications and Conversent Communications services cost between $55 and $60 monthly per line including the cost of the local line and associated taxes and fees. MCI's is about $70 per month but is the only one of the three that includes caller ID, three-party conference calling, call waiting and 8 speed dial numbers. These three carriers also offer DSL Internet access. Most carriers offer similar plans.

Verizon's plan
Verizon's Freedom^SM for Business plan is aimed at businesses with two to six lines, which have PCs on a local area network. In addition to unlimited calling, the package includes a 20% discount on DSL service, incoming toll free service at 6¢ per minute, a 10% discount on Verizon wireless service and discounts on calling cards and international calling. There are also plans for unlimited local and regional calling with long distant service at 7¢ per minute if the customer has Verizon DSL or 9¢ per minute without DSL.

MCI's plan
MCI's unlimited calling plan, MCI Business Complete has an option for DSL at speeds of 256 thousand bits per second for sending and 1.5 million bits per second for receiving. This is the only speed DSL that MCI offers. MCI also has a plan for unlimited local calling plan with per minute fees of 6¢ for long distance.

Conversent Communications
Conversent Communications' plan for unlimited local and long distance calling has various DSL offerings starting at $64.95 per month. They don't have a plan for unlimited local calling with per minute fees for long distance. However, their long distance fees are a low 5¢ per minute.

The Bottom Line
While these plans have small cost differences for unlimited local and long distance services, customers should be aware that:

• Some carriers offer more varied DSL options.
• Verizon customers receive a 10% discount on Verizon Wireless plans.
• Organizations need to spend $35 to $38 per month per line on local and long distance calling to cost justify these unlimited plans.
• Customers with mostly in state calling may benefit from unlimited local & regional calls with per minute rates for long distance.