New Jersey residential telephone consumers could save between $22 million and $167 million on long distance costs after one year of increased competition according to a study released today by the Telecommunications Research and Action Center (TRAC), the nation's oldest and largest consumer group devoted exclusively to consumer interest in telecommunications.

Across New Jersey, consumers could reasonably expect to save between $1.8 million and $13.9 million per month. For each consumer that switches, this could result in a monthly saving ranging from $2.46 to $18.44 per month. These potential savings could most significantly affect lower-income consumers and older Americans. TRAC has been comparing long distance plans and rates for consumers since 1984. Its TeleTipsSM Residential Long Distance Comparison Chart provided the basis for the predicted savings. Using TRAC's exclusive sample "calling baskets" of typical monthly phone bills, it is able to estimate actual and potential savings for typical consumers.

"Consumer savings from Verizon entry into the long distance market in New Jersey demonstrates the importance of increased competition and consumer choice in the telephone market," said Samuel A. Simon, Chairman of TRAC. "The evidence is in the numbers. We have seen this in New York, where increased competition has saved consumers over $200 million since further competition was introduced over 12 months ago," concluded Simon.

Over the past two years, TRAC has monitored the impact of state telecommunications regulatory activity on consumers in six states. As with each of these previous studies, the New Jersey report was conducted to ascertain if greater competition in the long distance telephone market would yield financial savings to consumers.

"This New Jersey study further reinforces the findings of the previous TRAC examinations - expanding the competitive landscape results in lower telephone prices, and consumers win," said Simon.

A TRAC study completed in April 2001 concluded that one year after Verizon's entry into the New York long distance market more than 1.7 million residential customers had switched to Verizon's long distance offerings. Those customers were projected to save between $79 million and $284 million annually on their long distance telephone bills. A September 2001 TRAC report estimated that consumers in Pennsylvania, Illinois, Florida and Georgia could collectively save between $200 million and $730 million a year. A November 2001 TRAC study of the California market revealed potential consumer savings of $89 million to $354 million annually if increased competition were allowed.

This TRAC New Jersey report uses the most up-to-date rate information included in the soon-to-be-released TRAC's TeleTips(sm) Residential Long Distance Comparison Chart.

A complete copy of the study is available at www.trac.org.

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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.