The Telecommunications Research and Action Center (TRAC), the leading national source of telephone related consumer information, announced today the release of its latest Residential TeleTips^TM Long Distance Comparison Chart to help consumers save in the New Year. While this issue of TeleTips^TM reveals that long distance rates have remained relatively stable, the chart shows long distance carriers have launched new plans and services to attract customers and remain competitive with wireless carriers.

This latest issue of TeleTips^TM features a total of 27 new long distance plans. In addition, TRAC has added a new carrier to its comparison chart: Verizon. Verizon is now the fourth largest long distance carrier in the country. TRAC has also found that more and more carriers now are offering "block of time" plan offerings similar to wireless phone plans.

"This is in response to the overwhelming popularity of these plans used by wireless providers. Consumers like establishing a pre-set amount for a certain number of minutes. They have a better idea of how much their bill will be each month, and it allows them to better budget their money," said TRAC Researcher Karen Walls. Sprint led the trend of offering block of time style pricing plans and now MCI, Qwest and Verizon have followed.

"Be careful though," said Samuel A. Simon, Chairman of TRAC. "Some of these plans offer a block of off-peak minutes for a certain fee per month. For most providers, off-peak typically means evenings and weekends. For daytime calls, consumers will pay per minute, therefore it is critical to understand a carrier?s definition of peak and off-peak before selecting a pre-set plan."

For instance, MCI Select 200 offers 200 off-peak minutes, but peak time calls are charged at a rate of 7 cents per minute. Consumers also will find this with Qwest?s 10 for 10 and Sprint?s 1000 Nights plans. TRAC recommends confining calls to off-peak times if consumers select one of these plans.

Some block of time plans work differently. For example, Qwest?s 250 plan offers a rate of 4 cents per minute for the first 250 minutes, regardless of the time of day or the day of the week the calls are made. Once consumers use 250 minutes, they are charged 7 cents per minute. "This is a good example of where having the opportunity to view an account online may come in handy. Consumers can track how close they are to using those first 250 minutes. It is also important to know the per minute rate the carrier will charge once the initial minutes have been used," suggested Walls.

Other Consumer Savings Tips

1. Prepaid long distance without the card ? Consumers who have a hard time judging how many minutes they will need, can opt for Verizon?s Smart Touch plan. Consumers decide how many dollars they want to spend on long distance calls per month, and Verizon notifies them when they have reached that limit. Consumers can always add dollars to their account to increase the plan. This is a good plan for consumers who are trying to control their long distance spending.
2. Get better calling card rates - Frontier now has a discount calling card that can be added to any of its plans for 99 cents per month with a rate of 17 cents per minute, plus a 30 cents per call surcharge. TRAC encourages consumers who use calling cards frequently to pay the extra dollar or two per month to get better rates on calling cards. AT&T, MCI and Sprint also are offering discounted calling cards.
3. Go "all online" - Many carriers already offer reduced monthly fees for subscribing or receiving the monthly bill online. Now, there are opportunities to save by going "all online." With a one year commitment to Sprint 7 Cents Anytime, consumers can reduce their monthly fee to zero by subscribing online. Customers also can save by paying their bill online and using online customer service. Those consumers who utilize this option can receive a rate of 7 cents per minute and no monthly fee.
4. Watch out for increases in those more obscure fees - TRAC has learned that AT&T plans to increase its Universal Service Fee to 11.5% (from 9.9%) on January 1, 2002. TRAC urges consumers to be mindful of these fees when choosing a long distance plan and carrier.

TRAC has been researching and publishing its TeleTips? Residential Long Distance Comparison charts for 14 years. To obtain a copy, go to www.trac.org and order with a credit card, or send a $5 check or money order to TRAC, P.O. Box 27279, Washington, D.C. 20005. Please include a self addressed, stamped envelope with 55 cents postage when ordering by check or money order.

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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.