Washington, DC - The Telecommunications Research and Action Center (TRAC) today released the 38th edition of its popular residential long distance rate comparison chart TeleTips™. The chart includes new fees and charges being passed on to consumers by long distance companies. TRAC is a Washington, DC based non-profit group that has tracked long distance rates for 15 years.

"What is clear from this new study is that the cost of having and using long distance service has skyrocketed for most consumers," said Samuel A. Simon, founder and chairman of TRAC's board of directors. "Consumers need to ask, 'How much is it going to cost me at the end of the month for long distance service with this company and the plan that I use?' The price-per-minute of a phone call is not the only issue. Today, fees and surcharges are rapidly becoming a large part of the long distance bill and are having a major effect on the bottom line for consumers."

The residential long distance comparison chart uses calling baskets to create sample monthly bills for the nation's leading long distance companies. Each basket includes long distance phone calls and additional services, such as calling cards, pay phones and directory assistance. New consumer charges, the Presubscribed Interexchange Carrier Charge (PICC) and the Universal Service Fund (USF), were added this year because the rates charged by each company are now settled and must be paid by consumers each month.

These fees are discretionary and charged regardless of the number of calls a residential customer makes. They vary from company to company. For instance, all AT&T plans have a PICC fee of $.85 per month and a USF charge of $.93 per month. MCI includes a PICC fee of $1.07 and a USF charge of 6% on its bills. Sprint residential customers are charged a PICC fee of $.85 and the USF charge is 5.8%.

When the residential calling basket costs for April 1999 are compared to the calling basket costs in April 1998, it is clear that costs have gone up substantially, more so for low volume users than high volume users. It is also clear that the fees are the primary culprits in the increase. These fees can constitute nearly 20% of the bill for the low volume users.

TeleTips™ also features a description of the different calling plans offered by the long distance companies.

"The TRAC Chart is the only one-stop shop for consumer education on how to pick a long distance company, " said KC Choi, TRAC senior research associate. "There is no other single source for consumers for information on the major long distance plans."

"Consumers may be able to save money by using one or more of TRAC's Hot Tips," said Choi. Top money saving ideas include switching to a plan that offers $.05 per minute calls on Sunday, checking out calling plans offered by the smaller long distance companies including Qwest, Matrix, Excel and Frontier, and by signing up for a plan on the Internet.

"Consumers should look at their calling patterns to determine if one of TRAC's Hot Tips makes sense for them," said Choi.

A description of TRAC's Hot Tips is attached.

For a copy of the April 1999 Residential Long Distance Comparison Chart, send a self-addressed stamped ($.55) envelope and $5.00 check to TRAC, PO Box 27279, Washington, DC 20005.

About TRAC

TRAC, a Washington, DC based consumer group, has been charting and comparing long distance rates for consumers since 1983. TRAC is the publisher of TeleTips™, a Residential Long Distance Rate and Small Business Long Distance Rate Comparison Chart. TRAC also produces a free Internet service at http://www.trac.org which features WebPricer, a joint service with San Francisco based Salestar, which allows consumers to get an instant call analysis by entering the calls from their bills onto a form and have the calls compared among various carriers.

MEDIA: To receive future press releases and updates, please sign up through TRAC's News Room Manager via the Internet on www.trac.org.

TRAC'S HOT TIPS FOR APRIL 1999

Call on Sundays if you can. There is no cheaper time of day for calling and less expensive rate than $.05 per minute. AT&T and MCI both offer $.05 Sunday calling plans, even for low volume users.

Big Spenders Look at Sprint Unlimited. If you spend $25 a month or more on long distance and can call on weekends, check out Sprint Unlimited for weekend calling. For a $25 a month fee, you get unlimited weekend calling, and pay $.10 a minute for all other times. The more you talk on weekends, the lower the price!

Check Out the "Other" Companies. The TRAC chart shows that the big three long distance companies, which account for most of the market, tend to be the most expensive. Qwest, Matrix, Excel and Frontier are often the least expensive options for most of the calling baskets.

Directory Assistance Blues. AT&T and MCI customers should NEVER dial 1-area code- 555-1212 for information. It now costs $1.40 per call. Using 00 for AT&T or 10-10-9000 for MCI, the charge is $.99. In most parts of the country you can now also dial 411 for long distance and local information, but you are charged about $.99 for the long distance information.

Check Out the Internet for Plans. All the long distance companies offer special plans if you sign up on the Internet and are billed via a credit card. Your bills are delivered on the Internet, too. These are often the least expensive plans for the carriers, but not always. You need to compare.

Consider Selective Use of 10-10 Numbers. The TRAC chart does not compare 10-10 services in its baskets because the 10-10 numbers don't offer a complete picture of the cost of long distance service at the end of the month. Nearly all consumers pre-subscribe to a plan and must pay the costs of that plan, plus taxes and fees. 10-10 numbers are called and charged in addition to those fees and rates. Nevertheless, consider using those 10-10 numbers that offer rates around $.10 a minute for you in daytime calling to supplement your regular plan.

MEDIA: To receive future press releases and updates, please sign up through TRAC News Room Manager via the Internet on www.trac.org.

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