AT&T Customers Gobble Up Thirteen Rate Hikes in 2004

With Thanksgiving upon us, the Telecommunications Research and Action Center (TRAC), the nation's only telecommunications-focused consumer group, today bestowed its first-ever Golden Turkey award. In the spirit of the season, TRAC is pleased to present our first-ever Golden Turkey award to the telecommunications carrier that took the cake in giving consumers indigestion this year - AT&T.

The company practically made the choice for us, thanks to the thirteen separate occasions so far in 2004 (by our count) that they raised discretionary fees and surcharges on local and long distance plans and services. For users of everything from AT&T's basic rate plans to its calling cards to its local and long distance bundled packages, being an AT&T subscriber has became a more expensive proposition in 2004. This trend has become especially notable since the company announced on July 22 that they would be getting out of the residential market.

"Starting on January 1, when AT&T began charging its Basic Rate Plan subscribers a $3.95 monthly charge we thought that 2004 could be a banner year for rate increases from AT&T," said John Breyault, TRAC Research Associate. "As this award shows, they have proved us right." Since the beginning of the year, AT&T has raised the fee for state-to-state collect calls to $4.99, the monthly charge for the AT&T Unlimited Plan to $22.95, and the monthly fee for bundled local and long distance plan subscribers in ten states, just to name a few. Additionally, AT&T continue to charge its long distance subscribers a 99¢ Regulatory Assessment Fee to pay for, among other things, the company's property taxes. "Is it any wonder that consumers are increasingly turning to wireless phones for their local and long distance calling needs?" said Breyault.

AT&T customers trying find a better deal may wish to take advantage of the resources available at www.trac.org. There, consumers can get tips on choosing a long distance plan, review past issues of our weekly consumer e-newsletter, TRACNotes, or purchase one of our popular TeleTips rate comparison charts, such as the TeleTips Residential Long Distance Comparison Chart which compares over forty of the nation's leading long distance plans.

# # #