How do long-distance rates work?

Long-distance rates are often based upon distance, whether or not the call crosses a state line or LATA (Local Access Transport Area) boundary. But, they are also based on paying the networks who carry the call for the use of their network. As a service to our customers, we provide local calling to all of our customers to anywhere within the North Central Telephone service area, even when crossing the state line of KY and TN. However, if the person you are calling, no matter how close they may seem in distance, is using another network, North Central has to pay for the use of that network in order to connect your call. That charge is passed onto you on your North Central bill as payment for the services provided.