TRAC Notes is distributed to TRAC members and those who have signed up on the TRAC website "Newscenter." If you do not want to receive TRACNotes, simply click here and let us know(i). You won't receive these in the future. We hope you choose to remain a part of our network, and that you find TRACNotes helpful. Our goal is to provide you useful information about what is happening in the telecommunications marketplace for consumers and to keep you up to date on TRAC's policy advocacy. If you like what you see, please consider becoming a member of TRAC by clicking here(ii). BUCK$ WATCH
VoIP a New Way to Deliver Telephone Service - The news has been full of stories(iii) of big telecom carriers teaming up with cable providers to offer voice-over-IP (VoIP) service as a way to compete with local phone companies.
VoIP is a technology that lets consumer hook a telephone into a box that is then connected to a cable modem, DSL line or other high-speed internet connection. The calls are then carried over the Internet instead of the traditional switched telephone network.
Is VoIP a good choice for consumers? Most commentators predict that VoIP will lead to lower costs to consumers. TRAC isn't so sure, at least not right away, and like anything not necessarily for everyone. If you are interested in VoIP, make sure you understand how it works, and all the costs associated with having it. For example, a consumer should take the cost of broadband service into consideration when estimating the true cost of VoIP. If you are a cable subscriber and already have high speed Internet from your cable company, you might save money if you get VoIP and drop your regular phone line. However, if you don't have a broadband connection and buy the service just to get VoIP, then you must factor that cost into your budget as well. Here's an example: Assuming $39 per month for cable modem service (which is on top of your video programming cost) and $35 per month for VoIP service, the true cost is $74 per month for service which may or may not include long distance service. If you have local phone service and opt for DSL and then get VoIP, you will have your local phone company line cost, DSL cost and VoIP costs. Also be aware that VoIP won't work with every phone or cable jack or every service such as TiVo. Check it out before making the switch. VoIP might end up saving a bundle, or costing an arm and a leg!
Avoid "Overbuying" of Telecom Services - Many telecommunications consumers can save money by doing a yearly "checkup" of their telecom buying habits. The best way to do this is to compare your bills from the previous three months and decide how much you actually use the telecom services you are paying for. For example, are you using all of the extra features, such as three-way calling, call forwarding, or caller ID that you signed up for on your local service? How many long distance calls are you actually making with your "unlimited" long distance service? Doing a "checkup" should only take a few minutes and could save you hundreds of dollars a year. Click here(iv) for a number of useful tips to help save money on your long distance bill.
WIRELESS WATCH
Porting Customers Faced with Long Delays - Customers who have attempted to port their wireless number to a new carrier since the FCC's rules on wireless local number portability (LNP) took effect have often faced delays of a week or more in getting their requests processed. Consumers experiencing delays porting their numbers to a new service should consider requesting a refund on their first month of service. Wireless carriers are unusually keen to keep new customers due to the new rules on number portability and may be more inclined to offer you an incentive to stay with their company. Click here(v) to send us your porting story!
TRAC IN THE NEWS
Consider "Cutting the Cord" To Save Money - Consumers could save money by making their long distance calls on their wireless phones instead of via traditional long distance carriers, said John Breyault, TRAC Research Associate, in the December issue of Better Homes and Gardens. Since you're already paying for the minutes, it makes sense to take advantage of the free long distance calling that is often included in wireless plans. Don't use your wireless phone to make international calls, however. Rates for overseas calls on your wireless phone tend to be very high.
INTERESTING LINKS
Telecom Carriers Raising Rates to Move Subscribers to Bundled Services - Thursday's Wall Street Journal contains a very interesting article on the trend by long distance carriers to raise rates and fees to try and move existing customers to newer bundled services. With the explosion of alternative communications options such as wireless phones, e-mail, and discount long distance services, traditional long distance carriers are trying to gain the "elite" customers who will spend $35 or more per month on service. This comes at the expense of losing customers who bill nothing or only a few dollars per month. Click here(vi) to access the article (subscription required).
FCC Main Page - http://www.fcc.gov
FCC Complaint Form - http://svartifoss2.fcc.gov/cib/fcc475.cfm
List of State Regulatory Commissions - http://www.naruc.org/resources/state.shtml
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©2003 Telecommunications Research and Action Center. TRAC grants unlimited rights to reproduce TRACNotes or any information contained in it provided attribution is given as follows: "Source:Telecommunications Research and Action Center. http://www.trac.org"
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