Flat Rate Plans Best Deal for Most While Other Discount Rates Increase Some MCI Plans For First Time Show Higher Costs Than AT&T Plans
Washington, DC -- Flat rate calling plans offer many customers the lowest rates on long distance calling, while more traditional discount rates have increased over the past six months, according to the Telecommunications Research and Action Center (TRAC), a non-profit consumer group that has tracked long distance prices since the AT&T breakup in 1984. TRAC today released the 31st edition of its widely used Tele-TipsÔ Residential Long Distance Comparison Chart. The new chart compares interstate residential rates and services for seven long distance carriers and 25 different calling plans, and for the first time provides consumer tips on selecting a carrier for new local toll competition.
TRAC's study shows that rates have changed significantly for AT&T and MCI and, as a result, many consumers can save by switching long distance carriers. "MCI customers, in particular, should take a hard look at the rates they are paying," said TRAC's Jill Straus. "In March 1995, MCI's plans were almost always the least expensive. In the current Chart, no MCI plan is the least expensive of those compared in Tele-TipsÔ, and for the first time, some MCI's plans are more expensive than some AT&T plans.
TRAC's study found that many consumers can save by switching to a flat rate plan. In 16 out of 18 calling baskets in the TRAC chart, flat rate plans offer consumers the cheapest rates among the seven carriers surveyed. For example, an average daily user making 15 calls per month who pays "Sprint Standard" rates would pay $32.43. By switching to "Sprint Sense," the same calls would cost only $23.79.
The new Tele-TipsÔ has several first-time features, including consumer tips on how to choose a carrier in light of new local competition. In addition, the TRAC Chart now includes comparisons of the new "commitment plans." These are calling plans that provide discounts or rebates based on consumers using the service for a specified period of time. Sprint, for example, provides a 10% cash back rebate for customers who stay with them at least a year and have spent $250 during that time. Matrix, a reseller, offers a discounted rate after a customer has been with them seven months. Tele-TipsÔ shows that with the Cash Back option, Sprint Sense often becomes the best deal, but consumers must remember they have to commit to the plan for at least a year.
"Calling plans and rates have changed dramatically in only a few months," said Sam Simon, counsel to TRAC. "Consumers more than ever need to re-evaluate their long distance carrier." For example, on November 1st, consumers who were on MCI's "New Friends and Family" plan were automatically converted to a new version of that plan, which has a new discount structure. The result is a rate increase for many MCI customers.
TRAC recommends that because of these rapidly changing rates, plans and special promotions, consumers should review their calling patterns and the rates of their own and other long distance carriers more than once a year. "Under the circumstances, cons umers should be checking their rates and plans every three months," according to Simon.
The best time to evaluate your options is when you sit down to pay your phone bills. Look closely at your calling patterns, see when you call, and then call your carrier and make sure you are on their best plan. Consider calling other carriers to see if you can get a better deal. Most carriers have a 24-hour 800 number for consumer inquiries.
With Tele-Tips™, consumers can make side-by-side comparisons of the 25 calling plans, based on three different types of calling patterns or "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-Tips™ 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-Tips™ is the single independent source of information about rates, features and services, and descriptions of all major interstate long distance calling plans. Tele-TipsÔ compares seven long distance carriers, including AT&T, MCI, Sprint, Frontier (previously Allnet), LDDS WorldCom, LCI and Matrix. TRAC does not compare intrastate calling plans or rates. Long distance rates and plans for in-state calling will differ from interstate rates and plans.
Copies of the current Tele-Tips™ residential chart may be obtained by sending a stamped, self-addressed business-sized envelope and $3.00 to TRAC, P.O. Box 27279, Washington, DC 20005. TRAC is a non-profit, tax-exempt organization that works to protect consumer interests in all forms of communications.
