Low Volume Users Warned Not to Switch to Plans with Fees

Washington, D.C. -- "If you don't make many long distance phone calls most months, then don't be lured by the new ATT calling plans to switch. But, if you do make $25 or more in interstate long distance and you make a fair number of day time (7 a.m. to 7 p.m. week-days) or peak calls, then this plan may be the one for you," said, Samuel A. Simon, Chair of the Telecommunications Research and Action Center, a non-profit consumer organization that has been educating consumers on long distance choices since 1983.

ATT's One Rate 7 Cents plan provides consumers who pay either a $5.95 a month fee or a $4.95 a month fee with a 7 cents a minute rate. If you also sign up with ATT for your "local toll" or "intralata toll" calls, then the $4.95 a month fee applies. In recent weeks, MCI and Sprint have introduced new plans as well. MCI is currently marketing its $.05 Everyday plans and Sprint is advertising a Nickel Nights plan.

"TRAC urges consumers never to just switch to a new plan without first analyzing whether the plan will work for them. In order to do this, consumers need to examine their calling patterns. Here are some tips for figuring whether the 7 Cents plan or the other newer plans are better:

• ATT 7 Cents looks good if you make significant daytime or peak calls. Before picking ATT for your local toll calls, though, make sure their rates are competitive with either your local phone company or other competitors in the market.
• Consider MCI 5 Cents Everyday Plus if you make only a few daytime calls.
• Don't use MCI 5 Cents Everyday regular plan unless you know that you will make very few daytime or peak calls.
• Sprint's Nickel Nights plan is comparable to MCI's 5 Cents Everyday Plus, but the nickel rate doesn't apply between mid-night and 7 a.m. If the choice is between MCI Everyday and Sprint Nickel Nights, the Nickel Nights plan has the better daytime rates.

Remember, these plans are good only if you are a heavy user of long distance, spending $25.00 a month or more every month. If you don't spend much on long distance, you may want to consider these tips:

• If you make very few long distance calls in a month, you might consider signing up for Frontier's Dial -1 Plan or Sprint Standard. Both have high per-minute rates, but no monthly fees or minimums (the last time TRAC checked).
• Consider D-PIC, or getting rid of your Dial 1 carrier Call your local business office and tell them you don't want a Dial 1 long distance service. After that, you need to use a dial around company 10-10-XXX. You will be charged $1.04 a month (and that will go up next year) by your local phone company.
• Consider Excel Dime Deal. It has only a $1.00 a month fee. It offers a flat rate of $.10 a minute all the time.

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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.