Small Business Alert: Long Distance Costs Have Decreased
New Survey By Consumer Group Shows Small Businesses How They Can Save up to 42% on Their Long Distance Bills and Up to 20% over Last Year's Plans
Washington, DC -- A new survey of the seven largest long distance companies and their calling plans for small business shows that long distance costs for small business have come down dramatically in the last year and that the calling plans have been simplified. The new small business edition of TeleTipsTMΒΈ is published by the Telecommunications Research and Action Center (TRAC), a Washington, D.C. based consumer group that has produced price comparisons since 1984.
Small businesses are paying less today than they were one year ago for long distance according to TeleTips. The best possible deal in July of 1997 for a no-term commitment plan for a company spending about $500 a month in long distance was $462.84. Today, the same company can find a plan and pay $368.04 a month, about a $95 a month savings," said Samuel A. Simon, Chairman of TRAC.
"The key to getting the most savings, though, is to get on the right calling plan," added Simon. "Our new chart shows that savings as high as 20 to 40 percent are possible between the highest and lowest cost plans. The TRAC chart shows some dramatic disparity in rates and plans. For example, at our highest end, an AT&T One Rate for Business plan costs $4,565.70 per month, with no commitment. If the same customer were to sign up for 3 years with Cable & Wireless, they would spend $3,504.00 a month for the same calls, resulting in a $1,000 a month savings."
The latest edition of the Tele-Tips Small Business Chart compares interstate rates for 14 different calling plans offered by the nation's leading long distance companies. TRAC provides sample calling patterns that reflect different levels of monthly bills ranging from as low 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 and a "Features and Comparison" chart.
"Long distance companies may offer discounts based on the length of the term commitment or the volume of calls a small business makes. Although these discounts can result in significant savings, they may have penalties if the commitment is not met," Simon warned. "Always read the fine print and know exactly what you are committing to."
Tele-Tips is the only independent source of long distance rate comparisons for consumers. Copies of the Business Charts are available by sending $7.00 and a self-addressed, stamped ($.32) envelope to TRAC, P.O. Box 27279, Washington, DC 20005. TRAC also publishes a Residential Chart for individuals interested in comparing residential phone rates ($5.00 plus $.55 postage). TRAC is a non-profit, tax-exempt membership organization that works to protect consumer interests in all forms of communication. Useful tips can also be found on the TRAC Web site at www.trac.org.
# # #
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.
