WASHINGTON WATCH
FCC Proposes $211 Million to Help Katrina Victims - On Thursday, Federal Communications Commission (FCC) Chairman Kevin Martin proposed releasing up to $211 million from the Universal Service Fund to speed up the reconnection of schools, libraries, healthcare providers, consumers and telecommunications carriers to infrastructure damaged by Hurricane Katrina. Chairman Martin said the commission will provide 300 free telephone minutes for evacuees and people still without phone service in the area. Martin said the free minutes are designed to help those eligible for Federal Emergency Management Agency assistance finally connect with family or friends and make plans for housing and work. Details on how affected consumers can access these free minutes was not available from the FCC as we went to print. We will update this information on our website (www.trac.org) and in subsequent editions of TRACNotes as it becomes available. For additional information on efforts the FCC is taking to help hurricane victims, click here.
TRAC and UCC Host Successful Parker Event - On Tuesday, September 13, TRAC and the Office of Communication of the United Church of Christ (UCC) hosted the 23rd annual Everett C. Parker Ethics in Telecommunications Lecture and Awards Luncheon at the National City Christian Church in Washington, D.C. The event was a big success with over three hundred attendees on hand to honor the pioneering work of Dr. Everett C. Parker as an advocate for the public’s rights in broadcasting. Honorees at the event included distinguished members of the media, academia, and the private sector. Charles Firestone, Executive Director of the Communications and Society Program at the Aspen Institute presented Professor Angela J. Campbell of the Institute for Public Representation at Georgetown University with the Everett C. Parker Award. Herbert Wilkins, Sr., President of Syncom Management Company, received the Donald H. McGannon Award from former FCC chairman Bill Kennard in honor of his work to promote minority ownership in the media. This year a new award, the TRAC Consumer Education Leadership award, was given to Jean Chatzky of Money magazine by CNBC anchor Ron Insana. It will be presented annually to an individual, like Ms. Chatzky, or an organization that has a history of educating consumers or has enabled consumers to use technology as tools of individual or community empowerment. The Parker lecture was delivered by New York Daily News columnist and Democracy Now! co-host Juan Gonzalez. Excerpts from Gonzalez’s speech can read by clicking here. The Everett C. Parker Ethics in Telecommunications Lecture and Awards Luncheon is the only lecture in the country to examine telecommunications and the digital age from an ethical perspective. Past speakers include network presidents, Congressional leaders, FCC chairs and commissioners, as well as academics, cable and telephone executives and journalists. It is funded by the communications industry, particularly broadcasters, along with the communications offices of major faith groups.
BUCKS WATCH
Use Prepaid Cards and Special Plans to Avoid High International Charges, Says FCC - Due to persistent increases in basic international long distance rates, consumers should look to alternative calling methods such as prepaid phone cards or discount calling plans (such as 10-10 dial around services) for their international calling needs. According to the Federal Communications Commission (FCC), even the most expensive calling card rates are far lower than basic schedule rates for international calls. Most consumers only make calls to one international destination. Many prepaid card companies offer special discount cards for calls to a particular country. Consumers may save by comparing the rates offered by these country-specific cards versus the rates for cards that can be used for calls to any country. For more information on the FCC’s study, click here. Another possibility for moderate-to-heavy international callers with a home broadband connection is to examine VoIP calling services. While it is possible to save on international calling with prepaid cards and 10-10 dial around services, it is important to read the fine print before using these products. First, watch out for high connection fees and billing increments. Connection fees, usually ranging anywhere from 10¢-$1.00 per call are charged anytime the call connects, even if it is to a foreign answering machine or a bad number. Billing increments of any more than 60 seconds should be avoided. A common trick by prepaid carriers is to advertise an unbelievably low per-minute rate but pair it with a 3-5 minute billing increment. For example, a 2¢ per minute call with a 5 minute billing increment would cost 10¢ whether the call lasts for thirty seconds or 5 minutes. Watch out for expiration dates as well. Prepaid cards often expire 1-3 months after first usage, whether all of the minutes on the card have been used or not. When trying a new prepaid card service for the first time, don’t spend any more than $5 on the card. Once you get a better idea of how many minutes per month you’ll be using, you can buy larger increments of minutes, if needed. There is nothing worse than spending $20 or more for a card with a lot of minutes that don’t get used and expire after three months.
WIRELESS WATCH
Simplicity of Wireless Plans Driving Exodus from Wireline, Says Study - The complexity of bundled local, long distance, and wireless service packages has been driving consumers to rely to a greater extent on wireless phones exclusively, a new study says. The study by the Yankee Group, a technology market research firm, shows that the simplicity and familiarity of wireless service offerings has made them more attractive than often confusing complexity of the bundled plans. "Wireless substitution for wireline residential phone service is a significant and unstoppable trend," said Yankee Group’s Keith Mallinson. “Carriers should aim to capitalize on the movement toward personal communications through one device on an anywhere, anytime basis rather than resist the inevitable shift away from wireline communications.” Interestingly, the study noted that young adults, non-whites, and those with incomes below $25,000 have been the most eager consumers when it comes to substituting wireless phone usage for wireline minutes. For more information on the study, click here. What does this mean for consumers? TRAC has found that most telecommunications consumers are buying more minutes than they know what to do with. With unlimited local and long distance plans as well as large buckets of wireless minutes, consumers are often left with a large pool of unused minutes at the end of the month. The costs for all those minutes add up. TRAC recommends that consumers do a communications “checkup” once every 3-6 months. Check you local, long distance, and wireless phone bills to see how much of the services you pay for you actually use. Chances are, you will find that you are paying for many more minutes and features than you actually use. If you find that you are spending most of your time away from the home and using your wireless phone during that time, consider paring back your local and long distance service to a bare minimum or even “cutting the cord” all together. Most carriers offer metered service (where you pay by the minute for all calls) that may save light home phone users money at the end of the month over larger, “all you can eat” packages. If you only use your cellular phone for occasional calling, consider buying a prepaid phone. This way, you will only pay for the minutes you use. A communications “checkup” should only take you thirty minutes to one hour to complete and could save you hundreds of dollars over the course of a year.
INTERESTING LINKS
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/displaycommon.cfm?an=15
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