TRAC Comments on new AT&T Calling Plan
Consumers Should Carefully Compare Plan and Rates
Washington, DC -- The Telecommunication Research and Action Center (TRAC) the leading non-profit consumer group that provides comparisons of long distance rate information, issued the following statement on the new ATT "Personal Network" to be launched Sunday during the Super Bowl. It can be attributed to Samuel A. Simon, Chairman of the Board of TRAC.
"The new ATT plan advertises a single price for wireless local calls and wire-line long distance service of $29.99 a month plus $.10 a minute. Consumers need to carefully compare this plan with the existing options that exist from AT&T and other companies. Clearly, this plan only works for people who use wireless service and are also subscribers to AT&T residential long distance.
A quick comparison of each element of the plan suggests that dollar savings may be hard to find. AT&T existing cellular rates are often less expensive than the new plan. For example, for consumers in the Washington DC area, the following comparison suggests that the Personal Network rates may be more expensive:
ATT CALLING PLANS (Current ones)
Monthly Fee Included Mins. Total
$24.95 60 Minutes $24.95
$39.95 200 Minutes $39.95
$49.95 500 Minutes $49.95
PERSONAL NETWORK PLAN (New Plan)
Monthly Fee Cost for Mins. Total
$29.99 $6.00 $35.00
$29.99 $20.00 $49.99
$29.99 $50.00 $69.99
It is apparent that the higher the local usage, the more expensive the new plan is relative to the current calling plans. This does not factor in long distance calls, which would be extra and at higher rates under the ATT calling plans. Similarly, the $.10 a minute rate, twenty-four hours a day for home long distance service isn't the best rate that ATT has to offer. Using ATT calling plans, it is possible to get $.10 a minute during the week and $.05 a minute on Sundays from the home for a monthly fee of $4.95. Even when the $4.95 is factored into the analysis above, it appears that it is still better for ATT consumers to not switch to the new Personal Network Plan.
At the lowest calling level, the current ATT customer would spend a total of $30 a month for 60 minutes of cellular calling and access to a home rate of $.10 a minute twenty-four hours a day, plus $.05 a minute on Sundays. The Personal Network for the same number of calls would cost $35 and it appears that the rate on Sunday is $.10 a minute! "
# # #
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.
