Rates and fees changing so rapidly it is likely consumers are not on the right plan

Washington DC -– The Telecommunications Research and Action Center (TRAC) today released a new edition of TeleTips? Residential Long Distance Rate Comparison Chart, comparing 41 plans, ten more than the last chart.

"Consumers can save big money by choosing the right plan and the right company," said Samuel A. Simon, Chairman of TRAC. "But it is much harder for consumers to make that choice. Since our last chart -- which was done only six months ago -- rates, fees and terms of services for most of the carriers have changed several times. It is unnecessarily complex today for consumers to know what service and plan is going to be the best for them for any length of time."

The chart compares different calling plans offered by the seven largest long distance carriers. TRAC uses a "calling basket approach," pricing 18 distinct baskets of calls that also compares calling cards, directory assistance and the different way each company treats FCC fees and charges. TRAC has been producing its rate comparison chart since 1984, when competition in the long distance market began.

A new wave of plans which favor moderate to high volume users by offering aggressive per minute rates with higher average monthly fees have replaced the best plans for consumers from the April 1999 chart. Plans such as AT&T One Rate Saver and Qwest 5? offer 5? per minute rate all the time with a $8.95 monthly fee.

Other plans now offer benefits to users of evening and weekend calling. Matrix Premier Residential offers 4.9? per minute for evenings after 7 p.m. and all day Saturday and Sunday, while charging 25? per minute for peak calling and no monthly fee. Sprint 1000 offers 1000 minutes of weekend calling free with a $25 monthly fee. Excel’s Three Penny Plan offers 3? per minute from 7 p.m. – 6:59 a.m. every day with a $5.95 monthly fee.

Alternative plans also offer other incentives to getting more aggressive rates. Qwest’s Countdown program begins at 9? per minute, but drops its price ½ a penny every three months until it reaches 5? per minute, while charging 5? a minute on weekend calling. For those looking to get Countdown’s $4.95 monthly fee waived, a credit card billing option is included for those who sign up through the Web.

"The number of choices are more than consumers want to deal with which is why TRAC works to help consumers get beyond the confusion of all these different plans," said Simon.

TRAC'S HOT TIPS FOR THE HOLIDAYS

• CHRISTMAS AND NEW YEARS MIGHT NOT BE CHEAPER: Check your carriers before assuming that Christmas or New Year's Day will be cheaper calling periods. It depends on your plan! For example, MCI standard rate plans with 5? Sunday will charge you normal weekend rates for Christmas and New Years Day. AT&T, for some plans, will treat both Saturday holidays as 5? Sundays.
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• NEW ATT PLAN FOR LOW VOLUME USERS: On December 1st, AT&T filed with the FCC for a new plans which is ideal for the very low volume user. IT IS THE ONLY ATT PLAN WITH NO MONTHLY MINIMUMS. The price is 19? a minute (in state and out-of-state), with no monthly minimums. (There are PICC and USF charges). If you are an ATT customer and spend less than 30 minutes calling in a month you may want to consider this plan.
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• CALLING CARD FEES: If you are an AT&T customer, and you may more than one calling card call in a month, it pays to join their $1.00 a month calling card plan. In December the per-minute charge for calling card calls when to 69? a minute. If you pay the $1.00 a month, it is 10? a minute! If you DON'T have an ATT calling card, DON'T pay the $1.00 a month charge.
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• CHECK OUT INTERNET SAVINGS: You can save using the Internet in a number of different ways. Go to TRAC http://www.trac.org and use directory assistance at no charge. We link to the sites that offer this. The big carriers offer some of the best plans only over the Internet. Go to their web sites. Finally, if your computer is properly equipped with a microphone and speakers, there are a growing number of "free" long distance services using the Internet.

Copies of the current TeleTips? Residential Chart 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.

TeleTips 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 TeleTips 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.

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