The Telecommunications Research & Action Center released a survey today that found a slight increase in cost for most long distance plans since September. The more important finding, though, is that there are large rate differences between plans and companies and consumers who shop carefully can save big money on their long distance bills. TRAC, the nation's leading non-profit group in telecommunications, has been publishing rate comparisons for consumers and small businesses since 1984.

The TRAC study shows that the least expensive plans continue to be offered by the smaller carriers, such as Matrix, Excel, and Frontier. "A smart consumer can save hundreds of dollars a year if they go with the right plan and right carrier," said Samuel A. Simon, Chair of TRAC. For example, the lowest rate for a heavy night and weekend user in our 18-call basket is $17.66 a month, using Matrix Premier Residential. The lowest comparable plan for AT&T is $26.30, for MCI it is $25.32 and for Sprint it is $30.68. You can save $91.92 to $156.24 a year by selecting the lowest rate plan and carrier! The TRAC chart is filled with similar savings opportunities for consumers.

Plans are also changing. Sixteen of the plans featured in TRAC's last study (September 2000) have been phased out. There are a total of 8 new plans offered now that were not available last September.

"The long distance industry is ever-changing," said Simon. "There are a number of new twists in this chart. For example, some carriers are offering lower rates for 'e-billing,' that is, having your bill sent electronically and charged to your credit card. But our chart shows the discounts offered for e-billing only save for some rate plans, and cost more for others! This just means it is important for consumers to carefully analyze the plans, and make smart choices."

About The TRAC Chart: TeleTips™ has been published by TRAC since 1984 when competition first became available in the long distance industry. TRAC compares costs and terms of service for the top facilities based long distance companies and for two of the largest resellers. TRAC's methodology is spelled out in the chart. TRAC relies upon a shopping basket of services that reflect what typical callers might make during a typical month. The rates and information are provided by the carriers themselves or are calculated by TRAC staff and then checked by the carriers. TRAC is pleased that MCIWorldCom has agreed to participate in the Chart preparation process again.

To obtain a copy of TRAC's Residential Long Distance Comparison Chart, send a $5 check or money order and a self addressed stamped envelope (55 cents postage) to TRAC, P.O. Box 27279, Washington, D.C. 20005. You can also order an electronic or hard copy with a credit card on TRAC's website, http://www.trac.org.

TRAC HOT-TIPS FOR CONSUMERS

1. Get the right calling card!

Most carriers offer a flat, low rate calling card option, if you agree to add a $1.00 or so a month to your local bill. If you make even one calling card call in a month, it is worth it. For example, a 3 minute calling card call from a pay phone with AT&T can be either $4.22 with basic plans; or $1.05 with the calling card plan ($1.00 per month to your local bill). You just have to ask for the plan with the lower calling card rates. Another way to save is to get a pre-paid calling card. These cards do not carry the big surcharges and often have attractive rates. You don't need to pay the extra $1.00 a month either.

2. Cut the cord?

If you have a wireless phone with a plan that includes nationwide long distance, consider using that for your long distance calling and "de-pick" your regular phone. If you call the local phone company and say you don't want to have a "1-plus" carrier, you can save some money and taxes. You can still reach a carrier by using a 10-10 number if you find that your wireless plan is at its limit.

3. Dial 411!

Watch your directory assistance costs. Two long distance carriers (MCI WorldCom and Sprint) have increased their rate to $1.99 from $1.40 and $1.50 respectively. In almost every state, it will be cheaper to use 411 for national directory assistance (usually $.99). And it is free if you have access to the Internet. Check out TRAC's web site for on-line Directory Services.

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