Washington, DC -- Two new studies from the Telecommunications Research and Action Center (TRAC) show ways that consumers can save money on long distance services. During the heavy calling period of the holiday season, TRAC urges consumers to do a long distance "check- up." "A long distance 'check-up' today can mean big savings on your long distance bill," said Samuel A. Simon, Chairman of the Board and founder of TRAC.

TRAC found that in some cases, consumers can cut their monthly rates in half by signing up for long distance service via the Internet. These plans require consumers to pay their long distance bills with a credit card. Also, by using the Internet for directory assistance, consumers can avoid some of the highest costs. "If you really want to save, " said Simon, "you need to be on the Internet, but that alone can add another $10 to $20 a month in costs. "

The TRAC study also warns that consumers are likely paying more today than they were nine months ago because of increasing fees for services such as calling cards and long distance directory assistance and new fees including the Universal Service Fund (USF).

Today, TRAC released a dial around comparison survey in conjunction with the Tele-Tips Residential Long Distance Comparison Chart. Dial around plans offer consumers an access number (e.g. 10-10-321,10-10-345, etc.) to "dial around" their pre-subscribed long distance carrier and get onto another carrier's system. In its survey, TRAC found that some dial-arounds offer very competitive rates, but many have hidden fees that can end up costing consumers more money. "The good news is that many of the dial around companies have become more competitive. The bad news is that a lot of the advertising for dial arounds is confusing and, in some cases, misleading," warned Simon.

Tele-Tips provides side-by-side comparisons of 31 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 Use," "Heavy Night and Weekend Use" and a composite section, "Average Daily Use." It covers a spending range from less than $4.00 to more than $350.00.

The 12-page study provides 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.

For the first time in its 14-year history, Tele-Tips does not include any information from MCI. The Tele-Tips process requires the companies whose rates and services are listed in the chart to provide information and to confirm the accuracy of the information that is included. MCI refused to cooperate in this process. TRAC regrets MCI's decision and believes consumers are not best served when they cannot get information on MCI rates in the Tele-Tips format. TRAC hopes that MCI will agree to participate in the future.

Tele-Tips is the only independent source for information on long distance calling plans. TRAC is a non-profit, tax-exempt consumer organization that works to help consumers make informed decisions regarding their long distance options. TRAC has published Tele-Tips for the past fourteen years. TRAC also provides an Internet-based long distance call comparison tool called WebPricer on its web site at www.trac.org.

Copies of the current Tele-Tips residential chart and the Dial Around Comparison Survey may be obtained by sending a stamped (two first class stamps), self-addressed, business sized envelope and a $5 check to TRAC at PO Box 27279, Washington, DC 20005. Members of the press can contact Becky Sachs at the number above for a free copy.

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MEDIA CONTACT:

John Breyault, TRAC, johnb@trac.org, 202-263-2943

ABOUT TRAC:

The Telecommunications Research and Action Center (TRAC), founded in 1983, is a non-profit membership organization based in Washington, DC that promotes the interests of residential telecommunications customers. TRAC staff researches telecommunications issues and publishes rate comparisons to help consumers make informed decisions regarding their long distance and local phone service options. TRAC can be found on the web at http://www.trac.org.