BUCKS WATCH
AT&T Rate and Fee Increases Hits Seniors and Low-Income Consumers Hard - Starting with bills issued on or after April 1, 2005, AT&T long distance customers will see their Regulatory Assessment Fee increase by 50¢ to $1.49 per month. Additionally, participants in the Federal Communications Commission’s Lifeline program for low-income users will no longer be exempted from paying the Regulatory Assessment fee, so their monthly telephone bills will increase by $1.49 per month. Lifeline is a federal program that promotes universal telephone service by providing low-income individuals with monthly discounts of between $5.25 and $10.00 (varies by state) on the cost of receiving telephone service. Residents of tribal lands may be eligible for an additional $25 in savings on their basic monthly phone bill. The Regulatory Assessment Fee is a wholly discretionary fee that AT&T uses to pay for state-to-state and international connection charges, property taxes, and expenses associated with regulatory proceedings and compliance. For more information on the Lifeline program, click herei. For additional information on AT&T’s Regulatory Access Fee increase, click hereii. Additionally, subscribers to AT&T’s Basic Rate plan will also be seeing their rates increase on April 1. Weekday calls made from 7:00 a.m. to 6:59 p.m., Monday through Friday will increase from 35¢ to 39¢ per minute. Off-peak calls (7:00 p.m. to 6:59 a.m., Monday through Friday) will increase from 29.5¢ to 33.5¢ per minute. Calls made on Saturday and Sunday will increase in cost from 18.5¢ to 23.5¢ per minute. The Basic Rate plan is the default long distance plan that an AT&T long distance subscriber is placed on when they do not choose a specific plan. Many seniors are on the AT&T Basic Rate plan, shaving never switched long distance subscribers after the AT&T breakup in the early 1980’s. According to a 2000 survey by AARP, more than three of every four seniors age 65 and older are on a basic rate plan. For more information on the Basic Rate Plan change, click hereiii. “If you have an older friend or relative that is still on a basic rate plan, you should discuss alternative long distance calling options with them,” said TRAC Research Associate John Breyault. “Even though they’re called ‘basic rates’ they are usually the most expensive plans a long distance company offers,” noted Breyault. A great way to compare long distance calling plans is with TRAC’s TeleTips Residential Long Distance Comparison Chart, which compares eighty-one of the nation’s leading long distance calling plans. The chart is available for purchase on TRAC’s website for $6.00 ($7.00 for a hard copy by mail) by clicking hereiv.
Universal Service Fee Increase Will Impact Most Telephone Users - On April 1, the FCC will be raising the contribution factor for the Universal Service Fund from 10.7% to 11.1%. Most telephone carriers will pass this increase directly on to their subscribers. For a long distance subscriber who makes $20 worth of calls per month, this will represent an increase of approximately 8¢ per month on their bills. The Universal Service Fund is a federal program that helps pay for telephone service for low-income users, subscribers who live in high-cost (usually rural) areas, schools and libraries, and rural health centers. All telephone companies that provide state-to-state service, including long distance, local, and wireless carriers are required to pay into the Fund, so bills for customers of all these services are likely to increase slightly thanks to this change. For more information on the Universal Service Fund, click herev.
Reader Feedback: TRAC Helps Consumer Save - Every so often, TRAC receives a letter or e-mail from a consumer that we’ve helped to save money on telephone service. It always gives us a lot of satisfaction. Here is one e-mail we received this week from a satisfied TRAC customer in Arizona: “Thanks to TRAC information, we have closed our Long Distance account with Global Crossing after paying almost $5.00 per month for service. After auditing our account we found we made 4 calls last year. We closed our Global Crossing account and bought a pre-paid card at Costco for $19.95 for 670 minutes. So far so good. We use the Internet to keep in contact with a far-flung family and haven't used the pre-paid card as yet. It has no connection fees or expiration date. The price of the information more than paid for itself. Thanks.”
SCAM WATCH
Modem Hijacking Relief for Verizon Customers in Pennsylvania - Victims of “modem hijacking” in Pennsylvania may be eligible for relief from fraudulent charges thanks to an agreement reached this week between Verizon Long Distance and the Pennsylvania Office of Consumer Advocate. “Modem hijacking” is an Internet scam by which malicious software containing a modem dialer is inadvertently downloaded onto a dial-up Internet user’s computer. This often happens when a user clicks in the wrong place when trying to close down a pop-up window while surfing the Internet. The software then uses the victim’s modem to dial high-rate international locations such as the Cook Islands or Sao Tome, with a scammer pocketing a portion of the calling charges. The victim is often unaware of the scam until they receive their next bill, by which time charges of as much as $7,500 may have been racked up. Current and former Verizon long distance subscribers in Pennsylvania who believe that they have been victims of “modem hijacking” should contact Verizon Pennsylvania at (800) 660-2215 or the Pennsylvania Office of Consumer Advocate at (800) 684-6560 (within Pennsylvania) or (717) 783-5048 (outside Pennsylvania). For more information on this agreement, click herevi.
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
What do you think? Got a tip you want to share? Nominate your "Scam of the Week" and your "Tip of the Week" - If we select your submission, we'll give you a one-year free membership in TRAC and acknowledge your contribution by name in TRACNotes. Send an e-mail to trac@trac.org to submit your ideas!
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©2005 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"
Endnotes
