AT&T announced new basic long-distance rates that removes a $3 minimum monthly charge and eliminates the $1.51 PICC charge, although per-minute rates rise. AT&T also will offer its 28 million basic subscribers a choice of three calling plans: a 10-cent a minute Saturday, 10-cent Sunday or a flat 16-cent rate. AT&T plans to launch a newspaper ad campaign touting the new rates starting on Monday, along with manning a 1-800 number to answer questions. These rates will go into effect on July 1, 2000:
The following statement can be attributed to Samuel A. Simon, Chairman of TRAC, the Telecommunications Research and Action Center:
“The new ATT rates mean that the lowest volume, basic rate ATT customers are going to get a break, provided they make very few calls. TRAC strongly opposed the $3.00 a month minimum charge, and we are pleased that the minimum fee has been removed.
The new ATT basic rate package now also offers low volume users choices. It is possible, for example, to be on ATT basic rates and have a $.10 a minute Saturday or Sunday rate and have no monthly minimums or fees. We are pleased that ATT has committed to notifying all of its basic rate customers of these lower priced basic rate choices.
While ATT plans give consumers new choices, they also add to consumer confusion. If an ATT basic rate customer does nothing, their ATT bill could go down as much as $4.51. But if they make a lot of calls, they could be paying more than they do today because of increases in the “default” basic rate charges. But the same consumer can also save, if they switch to one of the new basic rate options.
TRAC urges all ATT basic rate customers and all long distance customers, to compare and pick the right calling plan for their unique calling patterns. Here are a few tips for ATT basic rate customers:
TIP # 1: In early July, call ATT and ask to have the ATT service representative evaluate your account and put you on the best calling plan for your actual calling pattern. Check their web site too (http://www.att.com) for possible help if the lines are busy.
Tip # 2: If you make very few long distance calls in a month (less than 30 minutes) and you can call regularly on Saturday or Sunday, call and pick the calling plan that gives us $.10 a minute rate.
Tip # 3: Look very carefully at all time-of-day restrictions on rates. One of ATT’s new plans ($.05 a minute off-peak) charge on-peak rates during weekend daytime periods.
A new TRAC chart comparing the ATT rate changes will be available during the first week in July.
The TeleTips™ Residential Chart carries a complete listing of the national long distance residential plans. The expected availability is April 30th. For consumers to attain a copy of the chart, send $5 and a self-addressed, stamped envelope (SASE) with 55cents to TRAC, P.O. Box 27279, Washington, DC 20005.
