Consumers can save 75 percent or more on their monthly telephone bills by comparing long distance calling options with the new edition of TeleTips^TM residential and small business comparison charts, released today by the Telecommunications Research & Action Center (TRAC), the nation's leading telecommunications-focused consumer group. For example, eighteen calls totaling 129 minutes of talk time in the "Heavy Day Use" category ranges from an estimated $15.40 to $90.90 per month. Since certain plans are often targeted at customers' calling habits (e.g. heavy weekend calling, low-volume calling, etc.), using the wrong plan for a certain calling pattern could be a costly mistake.

"Residential and small business users often make their decision on which long distance carrier to use based solely on a carrier's heavily advertised per-minute rates," said Samuel A. Simon, TRAC's founder and Chairman, "however, taking into account additional costs such as per-call surcharges and other fees can quickly eliminate savings from a low per-minute rate. TRAC's TeleTips^TM comparison charts help consumers calculate the true costs of each plan based on a 'shopping-basket' tailored to their particular calling habits." For example, once the monthly fee, calling card surcharge, payphone surcharge, and other taxes are removed from the average monthly bill on Qwest's 5¢ Calling Plan the total cost is 23 percent lower than a bill assessed based on per-minute rates alone. Fees, taxes, and surcharges make up 21 percent of the average monthly bill on MCI's Nationwide plan as well. This trend continues in varying degrees across the great majority of calling plans.

An Essential Tool for Comparing Rate Plans

"With the increasing popularity of wireless phones, especially those which include long-distance calling, carriers have been raising their calling card and payphone rates and surcharges to make up for the lower revenues," said John Breyault, TRAC Research Associate.

The TeleTips^TM Comparison Charts provide a comparison of 66 different plans - 19 for small businesses users and 47 for residential users looking for the most cost effective way to meet their long distance telephone needs. Both contain a comparison based on usage patterns, as well as a break-down of features and services for the leading interstate calling plans from all of the major long distance carriers.

Tips for Choosing Long Distance Service

• Don't Be On a Basic Rate Plan: "Basic rate plans" continue to be among the most expensive offered by carriers. Consumers should always pick a "plan" that best suits their actual calling pattern.

• Bundled Services: TRAC recommends doing the math first for "bundled" plans that may include long distance, local telephone, wireless, and data services in a single plan. While many users may enjoy the convenience of a single bill for these services, it may save money to purchase these services individually. A bundled plan was cheapest in only one category, and that was for a high volume, day-time users.

• Term Commitments: Small business users are less frequently required to agree to a multi-year term commitment to get long distance service from a particular carrier. However, carriers may offer discounted rates or waive certain fees if a subscriber agrees to a commitment.

• Best Value: In general, long distance buying decisions should be based on who can provide the best value as opposed to choosing a carrier based on a low per-minute rate alone. With small business users increasingly turning to e-mail, wireless phones, and instant messaging for many of the services that they might have previously accomplished over the phone, long distance carriers have raised their rates for features such as three-way calling, calling cards, directory assistance, and toll-free numbers to make up for the lost revenue.

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