Washington, DC -- While standard long distance rates increased over the past six months, consumers can find major savings with new plans being offered by carriers, according to the Telecommunications Research and Action Center (TRAC), a non-profit consumer group that has tracked long distance prices for consumers since the AT&T breakup in 1984. Today TRAC released an updated version of its widely used Tele-TipsÔ Long Distance Comparison Chart. The new version compares residential rates and services for seven long distance carriers and 24 different calling plans.

TRAC's study found that while most standard rates increased by an average of 4.8% since last summer, consumers paying standard rates can get dramatic savings ranging from 25% to 35%, simply by switching to a flat-rate or discount plan that matches their calling pattern.

For example, an AT&T customer who pays AT&T's standard rates while making 15 calls per month, mostly at night and on the weekend, would pay $27.23. By switching to AT&T's cheapest plan, "True Savings", the same calls would cost only $21.29, a savings of $6.34 or 23% Similarly, an MCI customer paying MCI's standard rates would pay $27.48 for 15 calls per month made mostly at night and on the weekend. If they switched to MCI's cheapest plan, "New Friends and Family", they would pay only $19.12 for the same calls, a savings of $8.36, or 31%. And a Sprint customer paying Sprint's standard rates while making 15 calls per month, mostly at night and on the weekend, would pay $27.63. If they switched to Sprint's cheapest plan, "Sprint Sense", they would only pay $19.17 for the same calls, $8.06 less for a savings of 29%. Savings would differ based on the customer's calling pattern and spending level. Over a year, a consumer could save over $100 just be switching to a better plan, with even better savings if they typically call or spend more.

"Its important for consumers to know that they can save money", said Sam Simon, counsel to TRAC, "even without switching carriers." The TRAC study also found that many of the carriers' newest plans were the cheapest ones for that carrier. According to Simon, "For those consumers who have been paying standard rates or using any discount plan for a long period of time, there has never been a better time to do a `long distance check-up'." Recent studies have shown that as many as two-thirds to three-fourths of long distance consumers are paying standard rates. "These consumers are simply paying too much -- standard rates are almost always the worst deal," Simon added.

TRAC recommends that because of rapidly changing rates, plans and special promotions, consumers review their calling patterns and the rates of their own and other long distance carriers at least once a year. In addition to costs, they should also consider carriers' features and services such as billing, calling cards, etc.

With Tele-TipsÔ, consumers can make side-by-side comparisons of the 24 calling plans, based on three different types of calling pattern "baskets". There are "calling baskets" for heavy day time callers, heavy night and weekend callers, and a composite or "average" user calling basket. Other Tele-TipsÔ features include a Features and Services Comparison Chart, detailed Plan Descriptions for featured plans and consumer advice on how to select the best long distance options.

Tele-TipsÔ is the single independent source of information about rates, features and services, and descriptions of all major long distance calling plans. Tele-TipsÔ compares seven long distance carriers, including AT&T, MCI, Sprint, Allnet, LDDS, LCI and Matrix. LCI, a carrier offering six-second incremental billing, was added to the new version of Tele-TipsÔ.

Copies of the current Tele-TipsÔ residential chart may be obtained by clicking here. TRAC is a non-profit, tax-exempt organization that works to protect consumer interests in all forms of communications.

# # #

MEDIA CONTACT:

John Breyault, TRAC, johnb@trac.org, 202-263-2943

ABOUT TRAC:

The Telecommunications Research and Action Center (TRAC), founded in 1983, is a non-profit membership organization based in Washington, DC that promotes the interests of residential telecommunications customers. TRAC staff researches telecommunications issues and publishes rate comparisons to help consumers make informed decisions regarding their long distance and local phone service options. TRAC can be found on the web at http://www.trac.org.