Long Distance Savings for Business Owners Still Within Reach
Consumer Group Urges Business Users to Check Their Long Distance Rates
Study Shows Savings Up to 40% Possible by Selecting Right Plan
Washington, DC -- While small business long distance rates for most carriers have crept up over the past twelve months, with the cost of some plans increasing by up to 7%, the cost differences between long distance plans can be as much as 40%, according to a report issued today by the Telecommunications Research and Action Center (TRAC), a prominent Washington, DC consumer group. TRAC advises business owners to check their long distance rates or risk paying too much. "With the significant difference in costs among plans, a business that doesn't check its carrier and plan may find itself paying far too much for its long distance service," said Jill Straus, a Research Associate at TRAC.
The data is contained in the 30th issue of Tele-Tips Business Rate Comparison Chart. Tele-Tips is a semi-annual report available to business users of long-distance phone services. The Chart compares interstate long distance rates and services for seven major long distance carriers, including AT&T, MCI, Sprint, Cable & Wireless, Allnet, LDDS and a new addition, LCI.
Tele-Tips provides a way for small business owners to compare phone costs based upon their regular calling patterns. It compares actual rates for a series of calls in "calling baskets" that reflect different levels of calling, starting as low as $150 a month and going to $6,200.00 a month. Thirteen different calling plans are compared in the study. By locating the calling plan and usage level that most closely fits their situation, a small business can easily compare the rates of the major carriers and calling plans offered. Also included are detailed descriptions of each carrier's calling plans. Tele-Tips is the only independent provider of side-by-side comparisons of business phone rates and plan descriptions.
The June 1995 issue of Teletips shows that there are enormous differences between the most and least expensive plans for each of the calling baskets. Customers can realize the greatest savings by making sure they are using the correct calling plan for their particular calling pattern. However, features and services for business long distance vary widely as well, and small businesses are advised to carefully look at value-added features like 800 number service, calling card rates and convenience of use, coded billing and term discount contract requirements and benefits.
For example, the following chart excerpt shows the difference in price between the most and least expensive plans in the calling baskets for businesses that have single location plans, single location plans with term discounts, multiple company location plans and multiple location plans with term discounts:
| Maximum Difference between Plans in Each Expenditure Category |
|---|
| Business Plan Type | $150.00 | $350.00 | $700.00 | $1700.00 | $3200.00 | $6200.00 |
| Single Loc. Company | 40% | 37% | 38% | 39% | 41% | 44% |
| Single Loc. w/ Term Discounts | 41% | 35% | 35% | 36% | 42% | 33% |
| Multiple Loc. Company | 39% | 37% | 38% | 39% | 39% | 38% |
| Multiple Loc. w/ Term Discounts | 40% | 35% | 35% | 35% | 43% | 43% |
| * Further phone rate details, with carrier-specific figures, are available in the June '95 Chart. |
|---|
Tele-Tips is the only independent source of long distance rate comparisons for consumers. TRAC also publishes a Residential Chart for individuals interested in comparing residential phone plans and rates. Copies of the June `95 Tele-Tips Business Rate Comparison Chart may be obtained by sending a stamped, self-addressed, legal-sized envelope and $5.00 to TRAC, P.O. Box 27279, Washington, DC 20005. TRAC is a non-profit, tax-exempt membership organization that works to protect consumer interests in all forms of communication, including long distance phone rates.
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