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TRACNotes

Vol. 3  # 14 -- April 8, 2005
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BUCKS WATCH


MCI To Begin Charging 99¢ Fee For Paper Bills - The cost of receiving an “old-fashioned” paper bill is about to go up for MCI subscribers. Effective May 1, 2005, MCI subscribers will begin having to pay a 99¢ Paper Billing Option Fee for the luxury of receiving their monthly bills in the mail. The new fee is a subtle way for MCI to get subscribers to use their online account management tools. Unfortunately, MCI subscribers who do not have access to the Internet must pay the fee or opt to either have their credit or debit cards automatically charged for the cost of their monthly usage. This new fee comes in the footsteps of a series of fee increases that MCI has enacted since the beginning of the year. Last month, MCI began charging its local service subscribers a new $1.90 Carrier Access Charge to help pay for leasing its network equipment. In February, the company changed the way the Carrier Cost Recovery Charge was calculated which effectively raised the fee for many of MCI’s non-local service subscribers. Along with the Carrier Cost Recovery Charge change, the company also began applying its $6.99 monthly minimum usage charge on almost all of its long distance plans at that time. For more information on these fee increases, click herei.

New Telephone Rate Study Finds That Mergers Are Driving Up Costs - Long distance calling costs on basic rate plans have increased by 3.1% since 2004 according to a new study released by California-based consumer group Consumer Action. Additionally, the cost savings that consumers realized when the so-called Baby Bell companies entered the long distance market have largely disappeared, thanks in part to rampant consolidation in the consumer telecommunications industry, noted the study. Consumer Action’s study also mirrors TRAC’s findings that discretionary fees and other monthly charges have exploded. "The bigger carriers never met a fee they didn’t like," said Consumer Action editorial director Linda Sherry. Among optional calling plans, the study found that prepaid long distance plans from OneSuite and Tel3Advantage can save callers money versus a "pay as you go" or “bucket of minutes” plan. These prepaid plans require subscribers to pay in advance (via credit or debit card) for minutes used. Additionally, these plans allow subscribers to roll minutes over from month to month, unlike more traditional “bucket of minutes” plans. In addition to long distance rates, the study also examines calling cards, VoIP, international calling, directory assistance, and collect calling services. To read the entire "Interstate Telephone Rates Survey 2005," click hereii.

WIRELESS WATCH


Cell Phone Ban on Airplanes Should Continue, Says Survey - Airline passengers value their relative peace and quiet and don’t want it interrupted by wireless phone use in-flight, according to a new survey released this week by the Association of Flight Attendants/Communications Workers of America and the National Consumers League. Sixty-three percent of the survey participants wanted to keep cell phone restrictions in place, while only twenty-one percent said that it's time to let people talk on their phones during flights. Thanks in part to new tests that show in-flight wireless phone use could be safe, the Federal Communications Commission in December 2004 began requesting comment on lifting the ban on in-flight wireless phone use. Despite the advances, most airline passengers would rather the ban stay place, says Susan Grant, vice president of public policy with National Consumers League. “This survey and the popularity of the Do-Not-Call Registry for telemarketing illustrate the growing desire of many consumers to put up the “do-not-disturb” sign and have some peace and quite,” said Grant. For more information on this survey, click hereiii.

TRAC AND YOU


Got a Question? Ask TRAC! - With this week’s issue of TRACNotes, we are inaugurating an occasional section called “TRAC and You,” where we will be asking you, the reader, to send us your thoughts on what you’d like us to cover in TRACNotes. Having a hard time finding the best long distance plan to suit your needs? Let us know! What’s the best wireless plan for my family of four (one of whom is a college student)? We can help! What do I make of all of these new telecommunications technologies I keep hearing about and can using them help me lower my phone bills? Send us your question! Each week we will choose one question from our readers and answer it in TRACNotes. No telecommunications question is too complicated for our crack staff of researchers. What are you waiting for? Have a question? E-mail it to trac@trac.org and you could get it answered in TRACNotes.

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!

TRACNotes 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 hereiv and let us know. 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 with 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 herev.

©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