Long-distance dialing is a huge source of income for the Mexican economy. They know that US tourists have spent thousands of dollars to come there and generally have other things on their minds once they arrive. Consequently, few people ever stop to consider just how much that phone call back home is going to cost them. Don't come home just to find out you've unexpectedly run up hundreds of dollars in telephone bills. Instead, read this guide and learn everything you need to know to keep your calling expenses under control.

Once you arrive in Mexico, your different options for calling home are as follows:

• Call from the hotel room
• Telephone from the hotel room using your credit card
• Use an Internet phone service
• Use a discount calling service
• Dial from your cell phone
• Use a pre-paid calling card

Let's run down typical costs for each:

Call from the hotel room

Don't dial direct from your hotel room - that's the first lesson for any visitor to the Riviera Maya. A quick call can cost you $25 or more. Local calls are offered from $1 each, but long-distance is a different story. Expect to pay between $3 and $10 per minute for an international call back to the US, or even more to other countries. A 20 minute call could easily end up costing you over $200.

Since many US based phone services offer international service, it can work out great to have people call you at your hotel - but be sure to check to make sure you won't be charged for incoming calls first.

Dial using your credit card

Credit cards are usually less expensive than the hotel phone rates, but you'll generally get hit with hidden fees. In addition to your per-minute rate (which ranges from $.75 - $3.00 depending on the card), you'll also pay a connection fee from your hotel, international tax, and possibly an additional connection fee from your credit card company. You'll also pay any interest charges (9-15% annual) if you don't pay your balance off by your billing date. In the end, you'll save money over using your room phone, but you'll still pay a hefty premium.

Internet phone service

Using an internet phone service such as Skype is absolutely your cheapest bet, but you most likely will not find an internet connection in Mexico that is fast enough to support it. The best place to find a high-speed internet connection is one of the many local internet cafes. The cost is only about 60 pesos ($6 US) per hour, so it's extremely affordable. Unfortunately most will not allow you to connect your own computer equipment and you'll probably not want to lug your laptop around 5th Avenida in 90 degree heat anyway.

Discount Calling Services

Don't be fooled by stickers you'll see around town advertising discounted calls to US. Despite what they claim, they usually charge exorbitant rates, connection fees, and additional fees for collect or third-party calls. These services can end up being comparable to the price you would pay using your credit card or calling from your hotel room.

Cell Phone

What could be more convenient than using your own cell phone? Coverage has gotten better in Playa over the past few years and more than half of the town gets good reception now. Believe it or not, you can get pretty good prices if you plan ahead.

First, call your cell phone company and tell them that you would to have international calling added to your plan. The way these plans work is that you pay a flat monthly fee in exchange for a reduced per minute charge. For instance, Cingular charges $5.99 a month, and in exchange your rate drops from $.30 per minute to only 6 cents. That pays for itself if you make more than 24 minutes of international calls within the month. Remember to cancel the plan when you get back - if you forget, you can end up paying this fee month after month, which defeats the purpose.

6 cents a minute sounds too good to be true, and of course, it is. We pulled out our phone bill from our last Playa trip and here are how are charges looked on a per-minute basis:

International call charge - $.06
International tax - $.08
Roaming charge - $.59
Total: $.73/minute (+ $5.99 for the month)

Ok, so $.73/minute isn't so bad, but it certainly isn't the $.06/minute that they led us to believe it would be. To be fair, most of that money ($.59/minute) went to the local Mexican cellular carrier, but this example shows you that you can end up paying more than ten times what you thought you would if you simply believed everyone's advertising hype.

Pre-paid calling cards

Your best option is to buy a pre-paid phone card and make all phone calls from it. Even then, it's best to call from the hotel lobby or a public phone to ensure you won't pay a connection fee, which is common in Mexico even for toll free calls.

The advantages to having a good pre-paid card are numerous. They will work at any pay phone, you avoid roaming and connection charges, and you have a backup for when your cell phone battery dies at just the wrong time. You also know exactly how much you are spending ahead of time, so there won't be any unexpected surprises later.

Smart travellers know all this and so the phone card industry has become big business, especially in Mexico. As a result, many phone card companies have sprung up to fill the need. Buyer beware - a quick google search will turn up thousands of calling card sites advertising 5 cent/minute rates to Mexico. Don't believe it. Generally, these phone cards work in only a few places in Mexico and you will not be able to connect with most of them from Playa. Most will charge hidden connection fees ($.89 per call is typical) as well.

The absolute best phone card to use is the one offered by Mexico's telephone company, TelMex. The Telmex Traveler card works everywhere in Mexico and there are no connection fees or hidden charges. The price is $.50 US (5 Mexican Pesos) per minute to anywhere in the US or Canada. Do not be fooled by other companies' flashy advertisements - this is the absolute cheapest rate you can get.

It's a good idea to purchase a few $20 cards before you ever cross the border. Each card gets you 40 minutes of connection time which can be used not just from Playa, but also from the Cancun airport or anywhere else in Mexico. Also, many local stores do not carry the TelMex card and will try to convince you that all calling cards are the same. The reality is that the stores get paid more for selling competing cards (that's where those hidden connection fees end up).

To use the Telmex card, you call a toll free number and enter your PIN #. You then dial your number as usual to connect. The toll free number works from any phone in Mexico.

You can purchase the Telmex Traveler Phone card here. You will receive your PIN via email in just a few minutes.