Consumers Warned to Watch Out for New Hidden Fees and Service Changes
Washington, DC -- Long distance plans and services have changed dramatically in the past few months -- and not necessarily for the better -- according to a recently published study by the Telecommunications Research and Actio n Center (TRAC), a nonprofit consumer group that has tracked long distance prices since the AT&T break-up in 1984. The study is the latest edition of TRAC's Tele-TipsTM, which compares rates offered by long distance car riers and offers tips for consumers.
"It's time once again for consumers to get a 'long distance check-up'," said Samuel A. Simon, Counsel to TRAC. "Simply put, every long distance user ought to check and make sure that they are on a plan that best matches their own calling pattern. Which ever plan you've been on, the odds are that there's a better plan out there for you today. This is especially true for Sprint customers, due to fee increases and time period changes that in effect raise your monthly bill."
According to the TRAC study, MCI has regained its place as one of the low-cost carriers. "Over the past two years TRAC has seen MCIs rates as less competitive than the others. In this new study, the MCI One plan is the lowest priced plan in six differe nt calling baskets (areas of comparison) when matched up to similar plans, while in our March '97 issue it was cheapest in only two," commented Simon. "Furthermore, MCI One with Cash Back is the least expensive among 17 of the 18 calling baskets, provi ded you stay with the plan for one year."
AT&T continued to offer a low cost plan for the second study in a row. In March's chart, AT&T for the first time in the ten year history of the TRAC chart offered a "best-in-basket plan." In the new chart, AT&T repeated with the least expen sive rate in four different calling baskets, same as in March's study.
Smaller carriers also continue to be competitive in a number of categories, especially the night/weekend times and for some low volume users -- but the chart shows that they do not fare as well as they did in March’s issue. For example, Matrix was chea pest in three baskets, down from seven in March’s chart.
The TRAC study also revealed an array of new charges and service changes that are costing consumers more money. "Consumers are being nickel and dimed to death with these new fees and adjustments," said Geoff Mordock, TRAC Staff Associate. "Long distanc e directory assistance has gone up for some carriers from $.95 per call to $1.10 per call. Some calling card fees have gone up as well. Sprint even changed the length of their less expensive evening period and reduced their cheapest night/weekend calling periods. The result of these changes led to overall increases in charges to Sprint customers in nearly every category when compared to TRAC's March study -- as well as for customers of other carriers such as WorldCom and MCI."
Tele-TipsTM provides side-by-side comparisons of 28 calling plans, including the newest and cheapest flat-rate plans and the most expensive standard rates. The chart analyzes 18 call baskets that account for "Heavy Day U se," "Heavy Night and Weekend Use," and a composite section, "Average Daily Use." It covers a spending range from less than $7.00 to more than $350.00.
The 10 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 covering everything from calling card rates and surcharges to Internet and paging services.
Tele-TipsTM is the only independent source for information on long distance calling plans. It includes comparisons of rates, plan descriptions, and calling time periods. The study covers seven major long distance carrier s: 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://ww w.trac.org.
Copies of the current Tele-TipsTM residential chart may be obtained by sending a stamped (two first class stamps), self-addressed, business-sized (#10) envelope, and $5 to TRAC, PO Box 27279, Washington, DC 20005. TRAC also publishes a Tele-TipsTM comparison chart for small businesses, available by sending $7 to the same address.
