Three Months After the FCC's Adoption of the CALLS Plan, TRAC Research Indicates Residential Consumers Have More Competitive Choices

 August 30, 2000, Washington, D.C. - - The Telecommunications Research and Action Center’s (TRAC) latest update to its May residential long distance comparison chart shows that recent FCC-adopted reforms have lowered long-distance telephone costs.  The plan, adopted by the Federal Communications Commission on May 31, 2000,  took effect on July 1, 2000.

"In almost all calling baskets, long distance costs have gone down since TRAC's last comparison in May," said Sam Simon, Chairman of TRAC. "The elimination of minimum usage charges, the removal of some flat monthly fees and the creation of new plans has created even more options for the low-volume long-distance user."

The TRAC study found that among the largest long-distance providers, AT&T and Worldcom eliminated the $3 minimum usage charge for its basic rate plans.   Frontier created a plan with no monthly fees or minimums. Sprint, AT&T and Qwest already had such plans for basic schedule customers. Several carriers lowered monthly fees by $1.00: Worldcom on its 5 Cents Everyday Plan and Qwest on its 5 Cent Calling Plan.  Sprint lowered its Universal Service Fee (USF) from 8.4 %  to 6.8%.  “All of these changes are good news for consumers and translate into direct money savings for millions of people,” said Simon.

New plans also offer good options to consumers.  Frontier and Worldcom each created a new plan with a low per-minute rate and a nominal monthly fee ($1.99 and $3.95 respectively).  AT&T's Saturday Basic and Sunday Basic Plans allow consumers to select which day of the weekend they would like to receive the lowest per minute rate.  Frontier's new plans allow you to get the lowest per minute rate on specified holidays, regardless of whether they occur on a weekday or weekend.

            "Although there are many new low-price choices, some consumers on Dial 1 Standard Plans have seen prices go up.  That's why it's so important for consumers to order a copy of this study and get off those basic, high cost plans.  With so many carriers and so many plans, consumers need to know what they're paying and examine less expensive alternatives,” said Simon.

For a copy of the TeleTips Residential Long Distance Comparison Chart and update, send $5.00 check or money order and a SASE with 55¢ postage to TRAC, P.O. Box 27279, Washington, D.C. 20005.  You may purchase the updated chart online in PDF format for $4 (or hard copy to be delivered for $6) at www.trac.org.