TRACNotes
Vol. 4 # 24 --
June 16, 2006
 |
 |
BECOME A TRAC MEMBER
By joining TRAC, you will be joining thousands of consumers who want to learn and be involved with telecommunication issues that affect all of us. In addition, you will also receive free TRAC publications during your membership.
|
|
 |
BUCKS WATCH
Verizon Set to Raise Costs on 10 Legacy MCI Long Distance Plans - Ex-MCI long distance subscribers may not be in the mood to celebrate this 4th of July thanks to a flurry of rate increases set to take effect July 1. Verizon long distance customers who are still subscribed to their ex-MCI long distance plan should check the list below to see if their plan is affected by the increases:
- MCI Anytime Classic – Monthly recurring charge (MRC) increases by $1.00 to $6.95.
- MCI Anytime Connection – Per-minute rate increases by 2¢ to 16¢ per minute.
- MCI Weekends – MRC increases by $1.00 to 7.95.
- MCI All Week - MRC increases by $1.00 to 7.95.
- MCI Everyday Plus - MRC increases by $1.00 to 7.95.
- MCI Everyday Savings - MRC increases by $1.00 to 4.95.
- MCI One Advantage - MRC increases by $1.00 to 6.95.
- MCI Anytime Calling - Per-minute rate increases by 4¢ to 15¢ per minute.
- MCI Mundosimple de MCI – Per-minute rate on interstate calls increases by 3¢ to 10¢ per minute.
- MCI Mundosimple for Local - Per-minute rate on interstate calls increases to 15¢ per minute.
Ex-MCI long distance subscribers should periodically call Verizon customer service to ensure that they are on the best long distance plan to meet their calling needs. Both before and after the Verizon merger, TRAC has noticed a persistent tendency for the company to raise rate and fees on MCI long distance plans. A great way to shop around for the best long distance plan for your calling needs is to purchase TRAC’s TeleTips Residential Long Distance Comparison Chart, which compares 89 of the nation’s leading residential long distance and integrated local and long distance bundled plans on price, features, and “fine print.” It is available online for $6 ($7 for a hard copy) by clicking here or visiting www.trac.org/charts. For more information on the MCI rate and fee increases, click here.
WASHINGTON WATCH
FCC Action Could Mean Higher Wireless and VoIP Bills – Under the terms of a proposal currently before the Federal Communications Commission (FCC), wireless consumers and VoIP telephone subscribers could face significantly higher telephone bills. The proposal, which has the support of FCC Chairman Kevin Martin, would make VoIP telephone companies like Vonage pay in to the federal Universal Service Fund, which subsidizes telephone service in rural areas as well as for schools and libraries. The fund is facing a serious shortfall due in part to the migration of telephone users away from traditional wireline long distance to wireless and VoIP phones. VoIP service providers like Vonage do not currently pay in to the Fund. The new rules would subject 65% of a VoIP services revenues to the USF tax, currently set at 10.9%. Should the proposal pass, it is likely that this tax would be passed directly along to consumers. For a typical Vonage customer subscribed to the company’s $24.99 Residential Premium Unlimited Plan, such a move could mean a monthly fee increase of around $1.77. Wireless consumers could also see their USF taxes go up under the proposal. Under current rules, 28.5% of a wireless carrier’s revenues are subject to the tax. This tax is also typically passed directly along to consumers in the form of a line item charge on their monthly wireless service bills. Under Chairman Martin’s proposed rules, the so-called “safe harbor” number would increase from 28.5% to about 37%. Again, this would mean a significant increase in wireless users’ monthly bills. While TRAC typically does not support phone tax increases, we do support Chairman Martin’s proposal since it spreads the burden for paying for much-needed universal service programs more equitably over all providers who make use of the public switched telephone network. For more information on this issue, click here.
WIRELESS WATCH
Family Plans Gaining in Popularity, Says Study – Over half of postpaid wireless phone users are on family plans, according to new research released this week by the Yankee Group, a market research firm. This continues a trend in the wireless industry toward family plans, which typically offer 2 or 3 lines of service with a shared “bucket” of minutes. Teens are especially likely to be on a family plan, with 81% of 13-to-17 year old postpaid cellular phone users reporting that they are on a family plan. The popularity of family plans is in part due to the price and coverage sensitivity of American users. The Yankee Groups study has found that these two factors consistently outweigh customer service among wireless users. Consumers should keep these findings in mind when shopping for a new wireless plan. Remember, however, that your family may not need the comparatively large number of minutes in a typical family plan. As with non-family plans, be sure to evaluate how many minutes are actually being used each month to avoid overbuying. Unlike pay-as-you-go prepaid wireless or wireline long distance plans, postpaid mobile service subscribers pay for the entire bucket of minutes whether they use them or not. Consumers who find that they are leaving 200 minutes or more per month unused should consider switching down to a plan with fewer minutes. For more information on the Yankee Group study, click 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!
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 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.
©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"
