BUCKS WATCH
New $4.00 Fee to Affect Many AT&T Subscribers - Prior to its merger with SBC, AT&T offered local phone service nationwide in competition with the incumbent regional Bell companies. In July 2004, AT&T announced that it was exiting the local residential telephone business, though it stated that it would continue to service its existing local service subscribers nationwide. It is these “legacy” AT&T local service subscribers who will be affected by a new charge that AT&T is levying, effective March 26. On that date a new Local Connectivity Charge (LCC) will be applied to all AT&T local service customers with the exception of those inside the pre-merger, 13-state SBC territory, as well as New York, Florida, and Georgia. The new charge, affecting subscribers in 36 states, will be as much as $4.00 per line of service. Subscribers in Alabama, California (former GTE local service area), Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, and Tennessee will get socked with the full $4.00 charge. Subscribers in the 28 other states affected by the new charge will see a smaller fee ranging from $1.40 to $3.50 per month. Consumers can check the amount of the charge in their state online by clicking here. According to postcards sent to subscribers affected by the new charge, AT&T says that the new charge will help the company recover “increased connectivity charges associated with providing local service,” and that the fee is not a tax or charge required by any government body. However, BellSouth spokesman Mel Richardson told TRAC that BellSouth has not raised or changed any connectivity charges that they assess AT&T for access to BellSouth’s local telephone network. For more information on the March 1 rate increases, check out the February 17, 2006 edition of TRACNotes.
When comparing local telephone service prices outside of the 13-state former SBC region, AT&T rarely is the most cost-effective option available. For example, take the options available for standalone local service (not including long distance) in Winston-Salem, North Carolina:
- AT&T One Rate Local Plan (Includes unlimited local calling and 2 calling features): $29.95 service fee + $4.00 LCC = $33.95 per month
- BellSouth Preferred Pack Plan (Includes unlimited local calling and up to 5 calling features) = $26.00 per month
The case is much the same in other areas of the country as well, such as Boise, Idaho:
- AT&T One Rate Local Plan (Includes unlimited local calling and 2 calling features): $31.95 service fee + $1.40 LCC = $33.35 month
- Qwest Choice Home (Includes unlimited local calling and 3 calling features): $29.99 per month
The cost difference in Arlington, Virginia, (part of Verizon’s local territory) is similar as well:
- AT&T One Rate Local Plan (Includes unlimited local calling and 2 calling features): $27.95 service fee + $3.20 LCC = $31.15
- Verizon Local Package (Includes unlimited local calling and 3 calling features): $29.95
Note that this comparison is only for AT&T versus the incumbent local phone provider. Consumers have many other choices for phone service available to them including cable VoIP providers, third-party VoIP providers such as Vonage or Packet8, wireless phones, and PC-to-PC calling services such as eBay's Skype. Any one of these services may be cheaper than traditional wireline local telephone service.
In light of AT&T's new fee, and with so many communications options available, TRAC’s advice to subscribers to AT&T’s local service in the affected areas is “bail now!”
WASHINGTON WATCH
New York Cell Phone Bill of Rights Introduced - A new “Cell Phones User’s Bill of Rights” was recently introduced in the New York State Assembly and aims to help consumers make more informed choices when purchasing cell phones service. This bill comes on the heels of the passage of a more watered-down Telecommunications Consumer Bill of Rights in California earlier this month. The California measure focused more on consumer education, faster complaint resolution, and fraud prevention than on requirements that would have affected the operations of the carriers themselves. The New York bill of right is a much more stringent measure. The bill, introduced by New York State Assemblyman Daniel O’Donnell, would require cell phone companies to disclose all taxes, fees, and surcharges and provide an estimated total monthly bill before a consumer commits to service. Currently, some wireless carriers provide estimated bill totals as part of the introductory packet that new subscribers receive, but only after they have signed a service contract. Additional provisions of the law would allow consumers to cancel their cell phone contracts 15 days after receiving the first bill without penalty, require cell phone companies to provide more detailed coverage maps, and disclose to customers the E-911 capabilities of their new handsets. The bill this week was endorsed by the AARP. “New York consumers who find themselves roped into long-term cell phone contracts, filled with hidden fees and bad service, clearly need a law on their side,” said Lois Aronstein, AARP New York State Director. To read the full text of the bill, click here. To read AARP’s statement on the bill, click here.
What do you think of the New York “Cell Phone User’s Bill of Rights?” What kind of provisions would you like to see in consumer protection laws affecting cellular phone service? E-mail your thoughts to trac@trac.org.
TRAC AND YOU
FCC Offers Convenient Contact Information for Over 5,000 Phone Companies – Consumers who have ever gotten frustrated trying to find contact information for a phone company received a gift from the Federal Communications Commission (FCC) this week. The FCC’s updated Telecommunications Provider Locator report lists phone numbers and mailing addresses for more than 5,600 companies offering local, long distance, wireless, payphone, operator, prepaid calling card, and other toll telephone services. The report is available for free online from the FCC by clicking here.
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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©2006 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"
