When looking at long distance and tool free rates there are actually THREE long distance calls to consider. They are INTER-state, INTRA-state and INTRA-lata. For purpose of discussion I live in San Diego California.
Interstate (state-to-state)
Interstate is the one that most people think about. Interstate means calls that originate from your state and terminate in (ring to) another state. When I call from San Diego, California to Texas that is an Interstate call. A call from San Diego to Florida would be also be an Interstate call. The term "Continental USA Interstate" calling plan refers to the long distance calls FROM your state to the other 47 states. (Alaska and Hawaii are usually excluded from most Interstate plans).
IN-state (Intra-state)
Its when I call from San Diego to San Francisco (a long distance call with in the state) that the call is classified as InTRAstate. Those calls typically have a different rate and are typically higher than the Interstate rate. Rates vary GREATLY from state to state. Some states are down right expensive. In summary, Intrastate calls are for calls OUTSIDE your local calling area but still within your state.
Inside Local Calling area (Intra-lata)
InTRAlata is a term that the public rarely knows about. Typically your LOCAL phone company has two or three "zones" for calls that are within the local phone company's LATA (LATA is defined as the local calling area). Zones 1 and 2 are for short distance calls which are either free or you are charged messages units. The 3rd Zone (usually called "local long distance") are calls that you have a choice in who handles these calls. Most of the public lets the local phone company handle those calls (usually at high rates). Most long distance carriers today are able to carry your Intralata "local long distance" calls at the Intrastate rate. Since most local phone companies use one minute billing, switching would giving you savings because our vendors have six second billing. Rates offered by the long distance carrier also usually cheaper.
MY SUGGESTION is to look at your local phone bill for those "local long distance" calls. See what they are charging you. If our vendor has a equal or lower rate, you should request to switch "Intralata". Doing this will NOT change those Zone 1 and 2 calls. Those would still stay with your local phone company. Please Note: Intralata discussion is for calling out only. Intralata DOES NOT apply to toll free service. .
Toll Free Notes:
All calls that originate from inside your state and ring to your number are Intrastate calls. Thus if someone called you from next door or from the farthest point away in your state, it would be an in-state call. None of my carriers have a rate for IntraLATA toll free calls. Once the person calls your toll free number from a phone number outside the state, it becomes an Interstate call.
Why do Intrastate calls cost more??
Each state has its own rules, regulations and tariffs. Some states have high tariffs on instate calls, while others have a small amount. Distance is no longer a major factor in the cost of a call. That is why for an interstate call to the next state or to the farthest away state is the same price.
In the past long distance carriers, when profit margins were high, we had just one price for both interstate and intrastate. In an effort to bring the best interstate prices, all our vendors now quote an interstate rate and a interstate rate. It is therefore in your best interest in knowing what percentage of your calls are intrastate and interstate. Then compare our vendors prices accordingly.