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TeleTips: Twice a year, TRAC produces the TeleTips Residential Long Distance Comparison Chart, the only independent source for information on residential long distance calling plans.

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June 17, 1999


TRAC UPDATE: SPRING TIPS FOR SAVING MONEY

Washington, DC -- July 1st is an important date in the telephone world. It is the date each year that a number of major changes normally take place. This year there will be several events that will catch the pocket book of most consumers. These are:

ATT $3.00 Minimum. If you are a low volume, ATT customer, you received the notice in the mail that you are going to have to pay at least $3.00 a month just to be an ATT customer. This is on top of about $1.78 in new fees charged by ATT. Together, these two fees mean that if you are an ATT customer and don't use long distance in a month, you will pay about $4.78 for no service. Here are some tips on how to avoid some of these costs:

  • Switch to a long distance company that doesn't have a minimum or a fee. Send for a copy of TRAC's TeleTips(TM) Residential Long Distance Comparison Chart for full information ($5.00 and stamped self-addressed envelope to TRAC, Box 27279, Washington, and DC 20005). In the meantime, check out Frontier One (1-800-482-4848); Matrix Just 9.9 (1-800-282-0242); Qwest Q.Home (1-800-860-2255). When talking to the carrier, make sure the plans have not been changed and that there are still no fees or minimums.

  • "D-PIC" Your Carrier. What this means is that you call your local phone company and tell them you do not want to have a "dial one" company. (Primary Interexchange Carrier). If you D-PIC, then all your long distance calls, other than 800 number calls, must go through a dial-around company or you must use a pre-paid calling card. You will still be charged about 53 cents per month by the local company. Check carefully when you call to make sure the local company doesn't intend to raise that rate.

  • Analyze three to six months of your long distance calling. You might be surprised and find that in most months you do meet the minimum. Remember that if you make $2.00 worth of calls, you pay only an additional $1.00.

  • If you can't afford the $3.00 minimum and are otherwise on assistance, call ATT and they will waive the $3.00 minimum. (1-800-222-0300)

Directory Assistance Confusion: Are you confused by all the new directory assistance charges and advertising. Be careful! You can easily end up paying too much for directory assistance. Here are some ideas to help you save money:

  • Stop using 555-1212. This is especially true for MCI and ATT customers. When you dial 1- (AC) 555-1212 it now cost you $1.40 per call, with two numbers given on each call. There are less expensive options to this fee.

  • ATT customers should dial "00" for directory assistance instead of 555-1212. It costs $.99 and you can be connected at no additional costs.

  • MCI customers should consider dialing 10-10-9000. This costs only $.99 and this includes two numbers per call. Your call will be connected free of additional costs. If you are not an MCI customer you can still use this service, but if you are connected to the call you pay MCI's highest rates.

  • National 411 may be available from your local phone company. With this service you can get access to national long distance by dialing 411. The cost varies from company to company, but is typically $.95 per call, with two numbers given during the call. The local Phone Company cannot connect your long distance call.

  • Always use 411 for local directory assistance. You may see advertising touting "00" or 10-10-9000 for "all your directory assistance" local and long distance. But don't do it for local. If the number you want is a local number, use 411. Local directory assistance is cheaper than long distance (unless you pay the extra-charge for connecting a call).

Save on Second Lines: Are second phone lines worth it? Increasingly the answer is going to be no! The reason is the growing number of fixed fees, surcharges and taxes that are associated with having a phone line. While the monthly "rate" for a second phone line might be a nominal $12.00 a month, the actual cost could be as high as $25.00 by the time taxes and fees are added on, and closer to $40.00 with many features added on. Here are some ideas for getting along better with just one line:

  • Second lines today are often used for accessing the Internet. Instead of two regular phone lines, consider using a wireless phone as a "first" or voice line, and using your second or wireline mainly for Internet and fax uses. Many of the wireless plans provide for flat rates for both local and long distance calling for a fixed number of minutes. And if you already have a cellular phone, you can increase the number of minutes for talking on your current plan, and still save money by canceling your second land line.

  • Look at using telephone company voice mail in lieu of a second line for the computer. For $7.00 to $10.00 a month, calls automatically go to voice mail when you are "on-line."

  • Check out wireless and cable modems as options for a second line for your computer. Depending on where you live, you might be able to get full access to the Internet for as low as $29.00 a month, including the connection with a cable modem or a wireless modem. This is in lieu of a second phone line for about $20.00 and Internet access for about $20.00 a month.
  • If you are a very heavy user of Internet services, consider using advanced services that let you have data over voice on a single telephone line. While these services are expensive, they provide very high speed access and they let you have "always on" connectivity.

WHAT'S YOUR TIP? Send your tips to TRAC, trac@trac.org, and we will share the best of the tips in our next update!

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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.