Telecommunications Research and Action Center (TRAC), the nation's only telecommunications-focused consumer group has filed reply comments at the Federal Communications Commission (FCC) in support of the National Association of State Utility Consumer Advocates' (NASUCA) truth-in-billing petition for declaratory ruling regarding monthly line items and surcharges imposed by telecommunications carriers.

"Consumers are writing checks for local and long distance telephone service at the end of the month that are significantly higher than the advertised rate," said Dirck A. Hargraves, TRAC Counsel. "Instead of advertising low-rates and adding operating costs after customers purchase the telephone service, carriers should incorporate all of their fees, taxes, and surcharges into the rates they advertise. The current system can be likened to seeing a gallon of milk advertised for 99¢ and then having to pay a 10¢ 'homogenization fee' along with a 25¢ 'FDA compliance surcharge' at the checkout counter," said Hargraves.

TRAC recommends that the FCC prohibit telecommunications carriers from advertising their rates to the public in such a manner as to not fully disclose to consumers the true financial cost of the service including these additional surcharges. TRAC shares NASUCA's view that the carriers should be able to recover important operating and regulatory costs. However, these operating costs should not be added as line-item fees after the consumer has committed to a distorted or incomplete price plan.

It is TRAC's contention that selected telecommunications carriers are participating in a "bait and switch" operation, listing one set of lower prices to lure customers in, and presenting them with a higher total bill that incorporates surcharges and regulatory fees. TRAC urges the FCC to mandate that all telecommunication carriers' advertisements present their actual rates incorporating these additional costs of doing business.

TRAC's filing can be accessed by clicking on the following link: http://gullfoss2.fcc.gov/prod/ecfs/retrieve.cgi?native_or_pdf=pdf&id_document=6516285656

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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.