WASHINGTON, D.C. - Texas consumers can save money on their telephone bills by carefully weighing the price they pay for phone service against the convenience of a single phone bill, according to a new survey of bundled local and long distance plans released today by the Telecommunications Research and Action Center, a non-profit consumer education and advocacy group. Bundled local and long distance calling packages are an increasingly popular choice for consumers hoping to eliminate the extra bills that usually come with using two different carriers for local and long distance telephone service. Additionally, telephone companies are eager to offer these packages to their customers since users of bundles tend to be less likely to switch to another carrier. However, consumers in Texas should be sure to consider all of the costs involved before signing up for a bundled plan. In particular, long distance usage played the largest role in determining what plans ranked best in the survey. Therefore, TRAC recommends that consumers review their last three months of long distance telephone bills to determine what plans best fit their calling patterns.

TRAC’s bundled plan survey compares nineteen plans offered by the four biggest local and long distance telephone service providers in Texas – AT&T, MCI, SBC, and Verizon. Plans were divided into four calling baskets: low-volume (30 minutes per month), medium-volume (100 minutes per month), and high volume (500 minutes per month), and unlimited. The estimated monthly cost includes monthly recurring charges, per-minute long distance charges, and any discretionary fees charged by the carrier. Taxes, fees, and surcharges collected directly by carriers on behalf of federal, state, or municipal government entities were not included in the analysis.

TRAC’s survey found that for Texas consumers looking for an “all you can eat” unlimited residential local and long distance bundled plan, SBC’s Personal Choice with National Connections plan was the least expensive overall at an estimated $41.95 per month. MCI’s Neighborhood Unlimited and AT&T’s One Rate USA plans were the two most expensive unlimited plans at an estimated monthly cost of $62.07 and $57.13, respectively.

The study found that for low and medium-volume long-distance users in Texas (30 and 100 minutes per month, respectively), SBC’s Personal Choice with JustCall 60 plan was the best value, costing an estimated $29.95 and $32.75 per month per calling basket. So-called “power users” who make 500 minutes or more of long distance calls per month should consider an unlimited plan, since even the cheapest bundled plans with large baskets of minutes -- SBC’s Personal Choice with JustCall 200 and MCI’s Neighborhood Connect 500 plans (estimated costs of $55.95 and $56.95 per month, respectively) -- were more expensive than most of the unlimited bundles surveyed.

To order copies of TRAC's TeleTips^TM Texas Residential Bundled Plan Comparison chart, please visit www.trac.org or send $2 check or money order for the TeleTips Residential Long Distance Comparison Chart to 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.