TRAC RESPONDS TO AT&T $3.00 MINIMUM FEE
Consumer Group Offers Tips on How to Avoid Fees
WASHINGTON DC -- The Telecommunications Research and Action Center (TRAC) reacted to AT&T's announcement that it will begin imposing a $3.00 a month minimum usage fee on all its customers as of July 1, 1999 with the following statement:
"Sadly, TRAC predicted this development when AT&T announced the $3.00 minimum for its new customers. MCIWorldcom imposed a similar fee on January 1, 1999, without a public announcement. These fees are worth millions, if not billions, of dollars to these long distance giants, but consumers who pay the new fees are getting nothing new in return. It is time for low-volume users to consider cutting the long distance cord and disconnecting their one-plus company." According to Samuel A Simon, Chairman of the TRAC Board.
Consumers who do not make many long distance calls in a month should begin to examine alternatives to these carriers. Here are some tips for avoiding paying the minimums now being charged by AT&T and MCI:
- Cut the Cord. Consider calling your local phone company and tell them that you do not want any long distance company. This means that when you dial 1+Area Code and Number you will not be connected, although you will still be able to make 800 calls. You need to check with your local phone company to make sure there are no hidden charges from them. There is usually a charge of $.53 per month for this service from the local phone company, but some local companies charge much more. You will still be able to make long distance calls, but you will need to use any of the following to make a call:
- Pre-paid calling cards.
- 10-10 Numbers
- Collect Calls
- Calling Cards
- Pick a Carrier That Does not Impose a $3.00 minimum. At this time, Sprint, Qwest, Maitrix and Frontier are among those carriers that do not have a minimum fee for basic customers.
- If you are a low-income household eligible for lifeline service, call AT&T and they will waive not only the $3.00 minimum, but also the $1.78 in other fees. AT&T says they will take your word for it. MCI has no similar plan.
- Make sure all of your lines are on a single bill/account. AT&T and MCI apply their fee per-account, not per-line.
TRAC is also pleased that the Chairman of the Federal Communications Commission shared TRAC's outrage at this development. In an official agency release, Chairman Kennard urged consumers to shop around and referred them to the TRAC web site. A copy of his statement is available on the FCC web page http://www.fcc.gov/
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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.
