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TRACNotes

Vol. 3  # 5 -- February 4, 2005
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BUCKS WATCH


AT&T Monthly Minimums to Rise by Two Dollars - The minimum amount of calls that AT&T long distance subscribers must make per month is about to rise again. Starting March 1, 2005, the monthly minimums on eighteen AT&T long distance plans will be increasing; in most cases by two dollars per month. The Minimum Monthly Usage Charge is a fee that AT&T charges its long distance subscribers in lieu of their long distance charges if they do not make a certain amount of in-state, state-to-state, or international long distance calls per month (taxes, fees, and surcharges excluded). In effect, this represents yet another rate increase for AT&T long distance subscribers. The Minimum Monthly Usage Charge will be increasing to nine dollars on the following plans: AT&T 5¢ Evenings Plan; AT&T 5¢ Nights; AT&T Cash Back 12¢ Offer; AT&T One Rate; AT&T One Rate 10¢; AT&T One Rate 7¢; AT&T One Rate 9¢ Global Plan; AT&T One Rate Off-Peak; AT&T One Rate Off-Peak III; AT&T One Rate Plan; AT&T Simple Minutes; AT&T True Reach; Seven Cents Plan. Also effective March 1, 2005, the Minimum Monthly Usage Charge associated with the following plans will increase to five dollars: AT&T 5¢ eWeekends; AT&T Corporate Appreciation Plan; AT&T One Rate Basic Plan; AT&T One Rate On-Line; AT&T Simplified Plan. For more information on these increases and the affected plans, please click herei. With a potential merger with SBC on the horizon, AT&T long distance subscriber would do well to consider their options with regards to long distance service. A great place to start is TRAC’s TeleTips Residential Long Distance Comparison Chart, which compares more that eighty of the nation’s leading long distance plans on price, features, and “fine print.” For more information or to purchase the chart, click hereii.

BellSouth Payphone Surcharge Going Up - Making a call with a BellSouth calling card from a payphone is about to become more expensive. Effective March 1, 2005, BellSouth will be increasing the rate for the Pay Telephone Surcharge from forty-five cents to sixty-five cents per call. Consumers looking to get a better deal on payphones may want to consider using a prepaid phone card. Cards sold in major wholesale warehouse stores such as Costco, BJ’s, and Sam’s Club usually give a good “bang for the buck” on long distance when calling from a payphone. For more information on the BellSouth payphone surcharge increase, click hereiii.

WASHINGTON WATCH


Wireless 411 Directory Appears to be Dying - Thanks to consumer hostility as well as two more major carriers backing out of the system, the national wireless 411 directory is on life support and appears headed for an early grave. Sprint PCS and ALLTEL Wireless, who collectively represent about thirty million subscribers, recently joined Verizon Wireless in refusing to participate in the system, leaving only Nextel, T-Mobile, and Cingular to attempt to complete the implementation of the system. This action comes on the heels of legislation in several states which limit wireless carriers’ abilities to include their subscribers’ wireless phone numbers in a directory. Additionally, federal legislation in the form of the Wireless 411 Privacy Act proposed by Rep. Joseph Pitts (R-Pa) would require companies to secure users' verbal permission and allow customers to opt out of the database for free, effectively putting into law the provisions that the wireless carriers had originally agreed to on a voluntary basis. In October, the reaction of TRACNotes readers to the proposed directory was mostly negative. Wrote a reader in Killeen, Texas: “I for one agree with Verizon [in opting out of the wireless 411 directory]. I am sure that pretty soon after the service goes into effect the list will be sold to marketers.” A reader from The Dalles, Oregon had a more favorable impression of the directory, however. “If the billing method changes or I get rid of the landline altogether and I use my cell phone regularly, then I might consider wanting my number available in 411,” she wrote. For more information on the proposed wireless 411 directory, click hereiv.

TRAC IN THE NEWS


SBC-AT&T Merger Could Hurt Competition, Says TRAC - The recently announced merger of SBC and AT&T could have a troubling effect on competition in the telecommunications industry, said TRAC Research Associate John Breyault in Tuesday’s edition of the New Jersey Star-Ledger. “As far as choosing long distance, AT&T hasn't been a very good choice in awhile,” Breyault said. “But from a larger industry point of view, we're a little concerned about the decrease in competition. If AT&T is going to merge with anyone, we'd like them to merge with somebody smaller.” To read the full article, click herev.

Consumers are Overbuying on Telecommunications Services - A January 29 article in the Fredericksburg (VA) Free Lance-Star had a nice write-up of TRAC’s recently released TeleTips Residential Long Distance Comparison Chart. "While bundled packages appear attractive, for most consumers their value lies more in the convenience of having a single bill rather than as a true money-saver," said Samuel Simon, TRAC's founder and chairman. Companies are offering bundled plans because customers are demanding the simplicity of multiple services on one bill, said John Breyault, research associate for TRAC. To read the full article, 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

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©2004 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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