Guide to Choosing a Phone Service Provider

Look for small business specialists

Many phone service providers are actively targeting small businesses with special services, options and discounts. Choose a service provider that caters to small biz.

I recommend: Verizon offers a host of phone services geared to business owners. Find the small business offerings in your area from BellSouth and AT&T/SBC.

Order phone lines

The number of phone lines you'll need depends on the size of your business, your call volume and the number of employees who'll likely be on the phone at the same time. In addition to voice lines, your phone service provider should offer lines that allow you to access a fax machine and the Internet.

I recommend: BellSouth offers special discounts to small businesses that order additional phone lines.

Get a local calling plan

Every business — no matter how small — needs a local calling plan. Look for plans that offer unlimited local calling.

I recommend: Embarq (formerly Sprint) offers a host of local phone services for businesses.

Compare long-distance rates

You don't need to order long-distance service from the provider who handles your local calls. In fact, you may find a better rate from another provider, so shop around. Some plans allow you to make unlimited domestic long-distance calls for a flat rate.

I recommend: Check into Verizon's Freedom for Business program, which offers unlimited local, regional and domestic long distance calls for a flat monthly fee. PhoneSaver.com will refer you to an inexpensive long-distance provider in your area.

Shop international calling plans

If your business phone calls to foreign countries, set up an international calling plan. Shop various providers to find the plan that suits your needs best.

I recommend: BellSouth offers international plans that fit your needs whether you rarely make international calls, you call a single foreign country regularly or you make frequent calls around the world. Verizon's Talk to the World plan offers flat rate calling that's measured in increments of six seconds (after the first 18 seconds) so you only pay for the time you're actually on the call.

Choose your extra phone service features

Many calling features cost extra but are worth it. For starters, consider including voicemail, call forwarding, caller ID, speed dial and conference calling. Accounting codes can be especially useful if you need to track calls by client, employee or department. Call blocking, which allows you to block employees from making unauthorized long distance calls, can be a useful tool for some businesses.

I recommend: Check out a list of typical voice features from Embarq. BellSouth allows you to choose features a la carte or as part of its Complete Choice for Business package.

Bundle services

If you bundle local and long-distance services, as well as data and IP services in some instances, with a single provider, you may be able eligible for discounted rates.

I recommend: Try AT&T's All-in-One service for smaller businesses with one to two locations; enter your area code and 3-digit prefix to find specifics for your area. Embarq, Qwest and BellSouth also offer bundled services designed for home offices and smaller businesses.

Manage your account online

Look for a phone service provider that allows you to review past bills, make payments, request repairs or make changes to your account online.

I recommend: Embarq and Verizon both offer online billing management, support and other features.

Consider voice over IP (VoIP)

With VoIP, you can take advantage of your high-speed Internet connection to make local and long-distance phone calls, generally at a fraction of the cost of typical phone service providers.

I recommend: Vonage offers VoIP options for or home-based businesses. Talk Switch offers a hybrid VoIP/business phone system that allows you to save money on long distance while keeping a connection to a traditional phone system for local calls and emergency services.