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TeleTips: Twice a year, TRAC produces the TeleTips Residential Long Distance Comparison Chart, the only independent source for information on residential long distance calling plans.

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April 22, 2003


Prices Jump for 10-10 Callers

TRAC warns consumers about added surcharges and fees

Do you use a dial around to place long distance calls? If so, it's time to check out the new costs of calling with the latest Dial Around Comparison Survey released today by the Telecommunications Research & Action Center (TRAC). TRAC, the nation's leading telecommunications-focused consumer group, found that many 10-10 numbers have increased in price since the New Year. While per minute rates remain the same, many dial around services have started to impose monthly fees on top of the universal service fee that users will incur at the end of the month.

Dial around services are typically used as an alternative calling method for consumers without a pre-subscribed long distance service, and are most suitable for low volume callers. TRAC suggests that 10-10 callers carefully select the right dial around service for their needs, and continue to check with the provider for rate changes.

"With the addition of monthly fees and a laundry list of surcharges, 10-10 numbers can be as expensive as traditional long distance service. Some companies are now charging consumers more in extra fees and surcharges than the total cost of their state-to-state calls," said Kate Dean of TRAC. "TRAC's latest chart highlights the hidden charges and overall cost of select dial-around numbers so that consumers might still achieve savings." TRAC found that the estimated cost of 6 phone calls totaling 53 minutes (2 calls at 5.5 minutes and 4 calls at 10.5 minutes) now ranges from $2.84 to $9.59. This category of calling appears in TRAC's TeleTips residential long distance comparison chart.

  • AT&T 10-10-345 would cost an estimated $7.69 per month versus $5.00 for AT&T 5 Cent Nights.
  • MCI customers subscribed to the Anytime Connection plan pay approximately $8.60 per month and therefore could save money by using Worldcom's 10-10-220 or 10-10-321. Callers would pay an estimated $6.48 and $4.22, respectively.
  • Excel subscribers that make very few calls could potentially save up to $4.00 each month by using their 10-10-457 or 10-10-297 services.

New fees for 10-10 calling :

  • 10-10-345, AT&T's Lucky Dog service, now charges a universal service fee.
  • A $1.00 carrier recovery charge was added for all calls by Excel Communications, the company that offers 10-10-297, 10-10-457 and 10-10399.
  • A $2.95 monthly fee and $1.00 carrier recovery charge was added to ClearChoice (10-10-636) and Fiveline (10-10-811) by Vartec Telecom.
  • Most long distance carriers changed their universal service fees to 9.1% in accordance with new FCC guidelines. Check with the provider to prepare for an increase or savings on your monthly bill.
To order TRAC's latest dial around comparison chart, please visit www.trac.org or mail $2.00 to TRAC at PO Box 27279, Washington, D.C., 20005.

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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.