TRAC RESPONDS TO MCI'S RATE HIKE
CONSUMERS ASKED TO PAY FOR THE COMPANY'S LOSSES
MCI Communications this week lost it's chief executive and increased rates for a number of their services including long distance calling, directory assistance, and international calling. According to news reports, MCI, a segment of WorldCom Inc., claims that the rise in prices was set in motion months ago and is unrelated to recent reorganization within the company. The Telecommunications Research & Action Center (TRAC), the nation's leading telecommunications-focused consumer group, has been monitoring long distance rates since 1984.
As of June 1, the latest price increases will affect an anticipated 10 percent of MCI's customers, leaving the service provider's two most popular calling plans unchanged. Consumers should also note that some of the company's international calling charges increased as of May 1, 2002.
- Consumers who place long distance calls on Sundays will find MCI's per-minute rate has doubled from 10 cents per minute to 20 cents per minute.
- Each directory assistance call will now cost consumers $2.49 up from $1.99.
- NEW FEE! Customers who receive their local and long distance bills together will now be charged an extra $1.50 per month. AT&T and Sprint already impose this fee on their customers.
MCI is the nation's second largest long distance carrier and has been increasingly moving into the local market. Last month, TRAC applauded MCI for vertically integrating local and long distance calling with enhanced features, offering one-stop-shopping for some of the market's heaviest users. Whereas that plan is not affected by the increase, the latest rate hike demonstrates that the company is courting heavy consumers who spend more than the average household on telephone services. "Long distance carriers continue to cater to heavy users while the average consumer spends less than $10 per month on long distance," said Sam Simon, Chairman of TRAC. "These rate increases are passed on to the average user, forcing them to pay for the company's difficulties."
TRAC staff was unable to locate information about the higher rates on MCI's web site, and therefore urges consumers to contact the carrier directly to ascertain if the rate hike will affect next month's bill. TRAC publishes a number of consumer resources like residential and small business long distance comparison charts, dial-around comparison chart (10-10 numbers), and a variety of consumer guides. Visit http://www.trac.org to order and for more information.
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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.
