New Survey By Consumer Group Shows NYC Residents That Choosing

A Local Service Provider Can Lower Their Local Phone Bills

NEW YORK – Today at a press conference held in front of AT&T World Headquarters, Telecommunications Research and Action Center (TRAC) Chairman Samuel A. Simon and New York City Public Advocate Mark Green released the first ever comparison survey of local service options for New York City residents. According to TRAC, a Washington, D.C. based consumer group that has published price comparisons since 1984, New York City consumers can lower their local phone bills by shopping around for the best calling plan.

"New York City consumers can now choose their local service provider just as they would their long distance provider. As competition continues to grow and providers offer more and more options, it is essential that consumers make good comparisons in order to get the best deals possible," said TRAC Chairman Samuel A. Simon.

To compare the local service plans and features offered my major providers, TRAC developed sample calling patterns reflecting both the time of day and the number of calls typical customers make per month. These patterns range from the "minimal user" whose few calls are made mostly at night and on weekends (least expensive) to the "heavy user" whose calls are placed mostly during weekdays (most expensive).

Among the TRAC survey’s money-saving findings:

• An average user who makes an average portion of calls on weekdays - when tolls are highest - would pay as little as $31.19 a month with MetTel and as much as $45.71 with AT&T -- a savings of $14.52 a month and $174.24 a year.
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• A heavy user who makes calls mostly at night and on the weekends - $52.05 per month with Bell Atlantic and $45.38 with MCI, a savings of $6.67 a month and $80.04 a year.
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• Even minimal users can save by switching. A minimal caller whose occasional calls are made in the evenings and on weekends could pay $10.19 with Broadview Networks (assuming the customer also signed up for Broadview=s long-distance and regional services), $11.16 with Bell Atlantic’s Cents Per Minute plan (over $11 a year more than Broadview) or $24.20 with AT&T (over $168 a year more).

"There are several types of local service plans being offered that can save consumers money but only if they choose a plan that’s right for them. Some of the calling plans surveyed are clearly intended for certain types of users. For instance, flat rate plans, while great for high-volume users, can be costly for those who make fewer calls per month," Simon warned. "The key is to understand exactly what each plan is offering and determine if it makes sense for you."

Green commented: "Competition is finally coming to local calling. But to make competition really work, consumers will have to shop around and reward the lowest price plans with their business. TRAC’s survey gives consumers the information they need to do this."

Tele-Tips™ is the only independent source of long distance rate comparisons and now local service rate comparisons for consumers. Copies of the Local Residential Chart is available by sending $2 and a self-addressed, stamped $.33 envelope to TRAC, P.O. Box 27279, Washington, DC 20005. TRAC also publishes Small Business ($7) and Residential Charts ($5) for individuals interested in comparing long distance telephone rates. 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.

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