TRACNotes

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• Many AT&T Rate Increases Coming in May
• Spam Continues to Increase But Bothers Users Less
• Consumer Groups Criticize Telecom Mergers
• Telecom Mergers – Good or Bad?
• Wireless Spending Leveling Off

BUCKS WATCH

Many AT&T Rate Increases Coming in May - Tax day isn’t the only time that AT&T long distance subscribers will have to write some big checks this spring. Effective May 1, subscribers of thirty AT&T domestic and international long distance plans will see their monthly recurring charge increase by $1.00.

• The following AT&T state-to-state long distance plans will be affected: - One Rate 7¢ Plan, One Rate 7¢ Special Offer, One Rate 7¢ Plus, One-Rate Off-Peak V, One Rate Off-Peak II Plan
• The following AT&T international long distance plans will be affected: - AnyHour International Savings Bundle, AnyHour International Savings Plan, AnyHour International Savings Plus, AnyHour International Value Plan, AnyHour International Value Plan, AnyHour International Value Plan I, AnyHour International Value Plan II, AnyHour International Value Plan III, AnyHour Asia Value Plan, International Prepaid Minute Plan, International Value Plan, International Value Plan for Local, International Weekend Savings Plan, One Rate Global, One Rate Global Plus, One Rate International, One Rate International Plus, One Rate International Plus 2, One Rate International Plus Asia/Mexico, One Rate International Savings Plan, One Rate International Savings Plus, One Rate International Value Plan, One Rate International Value Plan for Online/Local, Simple Rate International, True Reach International Savings, True World Savings

In addition to the long distance and international increases, the monthly recurring charges on AT&T One Rate local and long distance bundled plans will be increasing by $4 in eleven western and midwestern states on May 6. See below for details on the new monthly recurring charges:

• Arizona: - One Rate USA - $47.95, One Rate Advantage - $52.95
• Idaho: - One Rate USA - $53.95, One Rate Advantage - $58.95
• Minnesota: - One Rate USA - $47.95, One Rate Advantage - $52.95
• Montana: - One Rate USA - $63.95, One Rate Advantage - $68.95
• Nebraska: - One Rate USA – $53.95, One Rate Advantage - $58.95
• North Dakota: - One Rate USA - $57.95, One Rate Advantage $62.95
• Oregon: - One Rate USA - $47.95, One Rate Advantage - $52.95
• South Dakota: - One Rate USA - $53.95, One Rate Advantage - $58.95
• Utah: - One Rate USA - $47.95, One Rate Advantage - $52.95
• Washington: - One Rate USA - $47.95, One Rate Advantage - $52.95
• Wyoming: - One Rate USA - $53.95, One Rate Advantage - $58.95

For more information on these rate changes, click hereⁱ.

Long distance subscribers who only make a few long distance calls per month should investigate dropping their long distance carrier altogether, especially if their plan includes a monthly recurring charge. Alternatives include prepaid phone cards, using unused wireless minutes to call long distance domestically (beware of overages, however), and 10-10 dial around services. For more information, consider purchasing TRAC’s TeleTips Residential Long Distance Chart, which compares 81 of the nation’s leading long distance and local/long distance bundled plans on price, features, and "fine print." The chart is available for purchase for $6 ($7 hard copy) by clicking hereⁱⁱ.

SPAM WATCH

Spam Continues to Increase But Bothers Users Less - Despite a dramatic increase in the number of spam e-mails being sent, Internet users are learning to live with it as an annoying, but tolerable fact of online life. According to a new poll by the Pew Internet and American Life Project, one year after the passage of the federal CAN-SPAM Act (which TRAC supported) e-mail users say they are receiving slightly more spam than before, but are minding it less. More than half of Internet users still consider spam to be a big problem, yet the ill effects of spam on e-mail habits and the overall Internet experience have declined. One reason that this may be the case is that pornographic spam, the type that generated by far the most complaints among e-mail users, has declined. However, the number of fraudulent “phishing” e-mails has increased. “Phishing” is the practice of sending e-mails requesting personal financial information that can then be used for such fraud as identity theft. The infamous “Nigerian money scam” e-mails are just one example of these sorts of “phishing” attacks. Improved spam filters appear to be at least partly responsible for the relatively small increase in spam, when compared to the overall volume of spam being sent. According to UK-based spam filtering company MessageLabs, during the average month in 2004, spam constituted 73% of e-mail, up from 40% in 2003. For more information on the Pew study, click hereⁱⁱⁱ . To get more information on “phishing” and identity theft, or if you have been the victim of fraudulent spam e-mails, visit the National Consumers League’s Internet Fraud Tips page by clicking here^iv or pointing your browser to www.fraug.org.

WASHINGTON WATCH

Consumer Groups Criticize Telecom Mergers - Some of the nation’s leading consumer advocate organizations this week called on the Federal Communications Commission (FCC) to examine closely the proposed telecom mergers between SBC-AT&T and Verizon-MCI. In a joint release, Consumers Union (CU), Consumer Federation of America (CFA), U.S. Public Interest Research Group (USPIRG), and the National Association of State Utility Consumer Advocates (NASUCA) criticized industry efforts to create a “cozy duopoly” for telecommunications service between the incumbent telephone and cable companies for most U.S. consumers. The groups claim that so-called “intermodal competition” from wireless phones and VoIP are either too expensive or not widespread enough to provide real competition with the incumbent telecommunications carriers. TRAC is does not share these groups concerns about the loss of ATT and MCI as separate companies. It is clear that both these long distance companies have stopped competing for residential consumers for some time. However, SBC and Verizon (or Qwest) need to establish that consumers will be better off if these companies come under their umbrella as opposed to some other buyer or simply going out of business.. TRAC thinks the buyers need to make clear, for example, how they will assure that consumers will be better off after the merger than before. For more information on CU/CFA/USPIRG/NASUCA efforts, click here^v .

TRAC AND YOU

Telecom Mergers – Good or Bad? - The past twelve months have seen a number of mergers and acquisitions in the telecommunications industry. On the wireless side, mergers have or will soon take place between AT&T Wireless-Cingular and Sprint-Nextel. On the wireline side, SBC and AT&T are merging and Verizon and Qwest are currently in a battle to see who will merge with MCI. What do you think of all of this industry consolidation? Is consolidation driven by changing industry economics and technology? Do you think one-stop companies will better serve your needs? Lower your bills? Increase the deployment of new technologies? Or do you think this is just the beginning of higher rates and less service? Let us know by e-mailing your thoughts to trac@trac.org.

WIRELESS WATCH

Wireless Spending Leveling Off - Americans are starting to arrive at the limit of what they are willing to pay for wireless service. The fourth quarter of 2004 marked the first decline in average household spending on wireless service in three years, according to new research from TNS Telecoms. The average American household now spends $50.59 per month on wireless service, representing 32% of the average household’s telecom budget, followed by video (cable and satellite TV), wired telephone services and the Internet. The report showed that wireless penetration has remained fairly constant at 71 percent. Local and wired long-distance penetration both showed slight declines in penetration. The report also found that despite heavy marketing, awareness among consumers of voice-over-IP (VoIP) remains low. According to the survey, only 26 percent of households in the U.S. with Internet access report having previously heard about VoIP service after it was described to them. Sixty-seven percent of total U.S. households have some type of Internet access. For more information on the study, click here^vi.

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 here^vii 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 here^viii.

©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"

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