Consumer Groups Seek Collaboration with AT&T and FCC on Transition of Sent-Paid Coin Service

Today, TRAC, the Telecommunications Research and Action Center, sent a letter co-signed by the National Association of Community Action Agencies, to the CEO of AT&T, Mr. C. Michael Armstrong, challenging AT&T's May 18th, 2001 application to the Federal Communications Commission (FCC) requesting a discontinuance of AT&T Sent-Paid Coin Service. This service allows consumers to make long-distance calls from payphones by depositing coins.

In its application to the FCC, AT&T proposed to eliminate Sent-Paid Coin service on 30 days notice. This action has the potential of leaving millions of the nation's most vulnerable populations without access to long distance telephone service, or no access at times when they most need to make calls.

In today's letter, TRAC requests that AT&T withdraw its application and engage in a collaborative process with the FCC, consumer groups and other appropriate regulators to establish a plan for removing Sent-Paid Coin Service that assures a smooth transition to alternative solutions.

While TRAC recognizes that Sent-Paid long distance service is not as popular as it once was, today it still remains an essential service for many segments of our society. Millions of lower income consumers do not have any home phone service and are not likely to have credit or other calling cards. Moreover, our brief investigation into the Sent-Paid Coin Service issue suggests that consumers in rural parts of the country rely more heavily on these types of calls and have the fewest options.

"These Americans are among the consumers who will be negatively affected if the FCC approves the application," said Dirck Hargraves, Counsel for TRAC. "TRAC is working to ensure that the interests of these consumers are acknowledged."

TRAC urges AT&T to abandon its current strategy and engage in a collaborative process with the FCC, consumers and pay phone providers, to develop a serious plan ensuring continued access by consumers to long distance service.

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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.