Smaller Carriers Still Cheaper for Low-Volume Phone Users AT&T Scores Cheapest for First Time in Several Categories
Washington, DC -- The "Big Three" long distance telephone companies are finally offering competitive rates to some consumers, according to a study called Tele-Tips(TM), published by the Telecommunications Research and Action Center (TRAC), a nonprofit consumer group that has tracked long distance prices since the AT&T break-up in 1984.
"If your monthly bill is over $25 dollars, AT&T, MCI and Sprint offer some of the most attractive plans," said Samuel A. Simon, counsel to TRAC. "But if your bill is less than $25, a smaller, less well known carrier will usually offer you the lowest rates."
The 33rd edition of TRAC’s Tele-Tips(TM) compares interstate rates for 35 long distance calling plans offered by seven long distance companies. TRAC studies 18 different calling patterns (or call baskets) to determine which plans are best for which types of callers, weighing factors such as the number of calls made and their distribution throughout the day. Published in March 1997, the newest Tele-Tips(TM) comparison chart shows AT&T, MCI and Sprint offering the cheapest rates in 10 of the 18 call baskets, an increase of six baskets since the last study was published in September 1996.
"This just goes to show you how much can change in six months," Simon said. "Consumers should call their long distance company every three to six months to make sure they are still on the best plan being offered."
One of the biggest surprises in the new study is the competitive pricing of AT&T, which has traditionally had some of the highest rates. For the first time in over a decade of monitoring, the Tele-Tips(TM) comparison chart shows AT&T offers the cheapest rates to consumers in some call baskets. In fact, AT&T is cheapest in four call baskets, all of which represent heavy-volume callers (above 430 minutes in monthly calls) with moderate or heavy concentrations of daytime calls. MCI and Sprint also offer some competitive calling plans for heavy volume users, with MCI cheapest for consumers in two call baskets, and Sprint cheapest in four.
Bargain hunting long distance users can also find some exceptional deals with smaller companies. TRAC’s comparison found that Matrix offered the cheapest long distance plans in five call baskets, the most of any carrier on the chart. Matrix and other small carriers like Frontier, LCI and WorldCom, offer plans which are especially good for low-volume telephone users because -- unlike AT&T, MCI and Sprint’s most prominent plans -- they do not have any monthly recurring charges or minimum spending requirements.
"Though consumers have a variety of plans to choose from, there is no single best plan for everyone," Simon said. "Consumers need to evaluate their calling patterns to determine which plan will be best for them. They should think about when they call, how far they call, and how much they use the phone each month. Consumers should also consider which features and services they expect from their phone company."
Tele-Tips(TM) provides side-by-side comparisons of the 35 calling plans, including the newest and cheapest flat-rate plans, and the most expensive standard rates. The chart analyzes 18 call baskets which account for "Heavy Day Use," "Heavy Night and Weekend Use," and a composite basket called "Average Daily Use." It covers a spending range that goes from less than $7.00 to more than $350.00.
The 12-page study includes additional information on how to choose a long distance company, including: consumer-friendly tips; detailed descriptions of each of the plans analyzed; and a comparison chart of features and services which covers everything from calling card rates and surcharges to Internet and paging services offered by each of the carriers.
Tele-Tips(TM) is the only independent source for information about long distance calling plans, including rates, plan descriptions, and a breakdown of calling time periods. The study covers seven major long distance carriers: AT&T, MCI, Sprint, Frontier, LCI, Matrix and WorldCom. TRAC is a nonprofit, tax-exempt, consumer organization that works to help consumers make informed decisions regarding their long distance options. Please visit us on the Internet at http://www.trac.org.
Copies of the current Tele-Tips(TM) residential chart may be obtained by sending a stamped (two first class stamps), self-addressed, business-sized (#10) envelope, and $5 to TRAC, P.O. Box 27279, Washington, DC 20005. TRAC also publishes a Tele-Tips(TM) comparison chart for small businesses, available by sending $7 to the same address.
