Consumer Group Releases New Dial-Around Study and Asks Agencies to Target Dial-Around Companies for First Enforcement
How much does a one minute, three minute or ten minute call cost using a Dial Around service? A new study issued today by the Telecommunications Research and Action Center (TRAC) showed that the prices vary radically, from as little as eight cents for a one minute call (10-16-868) to as much as $6.94 (10-10-502/10-10-275). (See attached Chart for other comparisons.)
"While we applaud the new guidelines, TRAC urges the Commission to target the so-called Dial Around Services and their marketing practices for immediate enforcement actions," said Samuel A. Simon, Chairman of TRAC.
"If the marketing and advertising were truthful, many of these companies could not possibly stay in business. Why would an informed consumer pay 99¢ for a ten minute call, when they could make the same call for less than half that amount, or 44¢. The answer, of course, is because consumers are confused and mislead by the advertising and pricing practices of many of these companies," according to Simon.
TRAC's Dial Around Comparison Chart contains a snapshot of the major Dial Around plans for consumers. Each plan has a unique rate structure. Monthly fees, USF fees or Per Call Fees are often not included in the advertisements and Web sites. Recent plans included in the chart show per call minimums are being included in the new plans.
"Before using any Dial Around number make sure you know what the call is really going to cost you. Call the provider to get verification of the rate. Ask about minimums and fees. It is easy to do, simply dial the dial around number and hit "00" at the end. A dial around operator will come on the line and may be able to give the rates or an 800 number to call. Unfortunately, this can be time-consuming. While doing research for the Dial Around Chart, we put in long stretches of time and, in the end, operators were not always able to give us accurate information," said KC Choi, TRAC's Staff Associate.
TeleTips™ is the only independent, non-profit source of long distance rate comparison. For a copy of the Dial Around Chart, send $1 and a self-addressed, stamped (33¢) envelope (SASE) to TRAC, P.O. Box 27279, Washington, DC 20005.
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COMPARISON CHART OF DIAL AROUND SERVICES
| 1 minute | 3 minute | 5 minute | 10 minute |
10-10-321 | $ 0.16 | $ 0.48 | $ 0.80 | $ 0.80 |
10-10-220 | $ 0.99 | $ 0.99 | $ 0.99 | $ 0.99 |
10-10-345 | $ 0.20 | $ 0.40 | $ 0.60 | $ 1.10 |
10-10-432 | $ 0.27 | $ 0.80 | $ 1.34 | $ 2.67 |
10-10-502 | $ 6.94 | $ 7.04 | $ 7.14 | $ 7.39 |
10-10-834 | $ 0.10 | $ 0.15 | $ 0.25 | $ 0.50 |
10-15-992 | $ 0.40 | $ 0.40 | $ 0.40 | $ 0.40 |
10-10-566 | $ 5.04 | $ 5.23 | $ 5.42 | $ 5.89 |
10-10-297 | $ 0.96 | $ 1.16 | $ 1.36 | $ 1.86 |
10-10-457 | $ 1.36 | $ 1.36 | $ 1.36 | $ 1.86 |
10-10-399 | $ 0.90 | $ 0.90 | $ 0.90 | $ 0.90 |
10-10-636 | $ 0.16 | $ 0.16 | $ 0.26 | $ 0.52 |
10-16-868 | $ 0.08 | $ 0.25 | $ 0.41 | $ 0.82 |
10-10-811 | $ 0.52 | $ 0.52 | $ 0.52 | $ 0.52 |
10-10-719 | $ 1.38 | $ 1.54 | $ 1.70 | $ 2.09 |
*Rates effective March 1, 2000
TIPS FOR USING DIAL AROUND SERVICES
- Check for Surcharges and Fees
If a Dial Around plan charges a monthly fee, the savings of using that plan is limited, even at 5¢ a minutes. A few carriers also charge the Universal Service Fund (USF) fee like a pre-subscribed carrier. Be aware that using multiple Dial Around numbers with the USF fee as a flat rate will result in ALL USF fees being applied. Per call fees can also apply.
- Know Your Calling Pattern and Compare
Whether you can save money using a Dial Around service depends on your unique usage patterns. Know how long you talk on calls, how many total minutes you use and what services you may need. Compare the rates to the calling plans available from your dial-one providers.
TRAC suggests that it isn't the price per-minute, but the cost per-month for your long distance telephone service that is most important. Some of the best long distance plans have very low night and weekend rates, but high daytime rates. These plans often don't have monthly fees, or very low fees. Consider, then, a strategy for using a dial around service for the calls made during the peak, daytime hours, and using a pre-subscribed carrier for night and weekend calling.
Consider Dial Around services if you don't call often. Depending on where you live, you can eliminate your long distance carrier by asking your local company to "d-pic." This means you won't have to pay any monthly surcharges or minimums from your long distance carrier. (You still have to pay $1.04 or more to your local company). Then when you do need to make a long distance call, you can dial around using one of the services in the TRAC chart that has no minimums, and low per-minute fees.
