MCI has announced a second and more significant set of rate increases. MCI, the nation's second largest long distance company, announced rate increases on many plans two weeks ago, increasing those by 25 to 80%. Today the Telecommunications Research & Action Center (TRAC), the nation's leading telecommunications-focused consumer group, warns all MCI customers that the cost of their phone service is rising even higher.

All MCI long distance customers will see higher bills in 2003 resulting from greater universal service charges, higher monthly minimums, increases in calling card and casual calling rates, and new fees. The new charges for the New Year include:

• $2.50 per month if MCI Consumers receive their long distance bill with their local phone bill.
• A $5.00 monthly minimum will be imposed on ALL calling plans.
• Customers will be paying 10.5% of their bill, up from 9.9%, in Universal Service charges.
• Casual callers, those without an MCI account that place occasional long distance calls, will be paying $3.95 per call surcharge and $0.75 per minute.
• State-to-state calling card calls will cost $1.25 per minute with a $1.75 direct dial per call surcharge.
• NEW FEE! February 1, MCI will begin levying a new "tax" of 0.5% - a "Carrier Cost Recovery Charge." This fee is imposed by MCI, not the government, and will account for an additional 0.5% of your monthly bill.

"The most recent rate increases will affect 100% of MCI customers, not just those enrolled in specific calling plans," said Kate Dean of TRAC. "Our worst fears seem to be realized - TRAC believes that these rate increases are a direct result WorldCom's accounting and legal woes."

In June 2002, TRAC wrote the Federal Communications Commission (FCC) on behalf of local and long distance telephone consumers in light of WorldCom's bankruptcy filing. TRAC asked that residential consumers not bear the burden of increased long distance rates and other charges as a response to the company's financial trouble.

TRAC, once again, reminds consumers to be aware of their calling habits, and to evaluate their long distance bills. "Be sure that you are not spending too much, or getting too little from your long distance service," added Kate Dean. "TRAC urges consumers to investigate competitive calling options, as well, including wireless phones, prepaid calling cards and dial around services, many of which do not include monthly fees, surcharges and universal service fees."

Need help evaluating? Order TRAC's Tele-Tips Residential Long Distance Comparison Chart, or one of TRAC's consumer guides. TRAC charts can be sent in PDF or hard copy. Go to http://trac.org/publications to order online.

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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.