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TeleTips: Twice a year, TRAC produces the TeleTips Residential Long Distance Comparison Chart, the only independent source for information on residential long distance calling plans.

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July 15, 1997


Businesses Can Save Big on Long Distance Calling

Consumer Group Survey Shows New Options and Big Savings for Business



Washington, DC -- New plans and new strategies by long distance companies can help small businesses save up to 28% on their long distance bills, according to a study released today by the Telecommunications Research and Action Center (TRAC), the Washington, D.C. based consumer group that has published price comparisons since 1984.

"The long distance companies have revamped their small business plans, so it is very important for small business users to check out their options," said TRAC counsel Sam Simon. "If you are on the wrong plan, you can save up to 28% by switching to the right plan according to the TRAC study, and this can add up to thousands in the long run. The new study contained in TRAC’s Tele-Tipstm; Business Chart can help business owners match their calling habits to the cheapest calling plan."

The latest edition of the Tele-Tipstm; Business Chart compares interstate rates for eleven calling plans offered by the leading companies. TRAC provides sample calling patterns that reflect different levels of monthly bills ranging from as l ow as $90 per month up to $4,500 per month. By locating a column that represents their typical monthly phone bill, small businesses can see if they are on the best plan of those compared. Also included in the study are detailed descriptions of each plan a nd a "Features and Comparison" chart.

"Small businesses willing to sign a long-term contract may get the best rates," Simon said. "While a term commitment can save a business as much as 27% on the same calling plan, it can lock you into a long term contract and force you to pay a penalty f or early cancellation should you decide to switch plans. Read all of the fine print before agreeing to such a contract."

The survey showed that businesses should consider the services and features they need while shopping for the best rates available. Long distance companies have expanded their service offerings to include broadcast faxing, paging, cellular and Internet. Some plans even let you count the dollars spent on those expanded services toward volume discounts included in your calling plan.

Tele-Tipstm; is the only independent source of long distance rate comparisons for consumers. Copies of the Business Charts are available by sending $7 and a self-addressed, stamped ($.032) envelope to TRAC, P.O. Box 27279, Washington, DC 20005. TRAC also publishes a Residential Chart ($5) for individuals interested in comparing residential phone rates. TRAC is a non-profit, tax-exempt membership organization that works to protect consumer interests in all forms of communication. Usefu l tips can also be found on the TRAC Web site at www.trac.org.

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