BUCKS WATCH
Alabama to Wyoming: TRAC Compares Local Phone Plans - For many consumers in the United States, local phone service is still as important in today’s age of cellular phones and instant messaging as it was back when we had to ask Mabel the Operator to connect all our calls. Unfortunately, determining the cheapest options for local phone service has not become any easier since the local telephone market was opened up to competition in 1996. Therefore, this week’s edition of TRACNotes begins a year-long series of articles devoted to helping consumers in every state in the Union (and the District) compare the real cost of local phone service in their state. While most local phone companies offer “all you can eat” packages of local and long distance phone service with a basket of optional calling features such as three-way calling and call forwarding, TRAC has found that most consumers just want to have an unlimited local calling plan with the two (by far) most popular calling options – call waiting and Caller ID. Therefore, TRAC’s comparisons will only focus on plans that meet those three criteria. Since state and local taxes often vary from county to county, we will also only include the fee that carriers assess to pay for the Federal Subscriber Line Charge. With this methodology in mind, let’s begin with the first state in the alphabet: Alabama.
| Carrier |
Plan |
Monthly Service Fee |
Caller ID |
Call Waiting |
Federal Subscriber Line Charge |
Broadband Fee* |
Total |
| AT&T |
One Rate Local |
$29.95 |
Included |
Included |
$6.50 |
N/A |
$36.45 |
| AT&T |
Call Plan Unlimited - 2 Features Enhanced |
$28.95 |
Included |
Included |
$6.50 |
N/A |
$35.45 |
| BellSouth |
Basic Residential Line |
$16.30 |
$7.95 |
$5.50 |
$6.50 |
N/A |
$36.25 |
| BellSouth |
Preferred Pack Plan |
$29.95 |
Included |
Included |
$6.50 |
N/A |
$36.45 |
| BellSouth |
Complete Choice Plan |
$34.00 |
Included |
Included |
$6.50 |
N/A |
$40.50 |
| MCI |
Neighborhood Connect 200 |
$37.99 |
Included |
Included |
$6.50 |
N/A |
$44.49 |
| MCI |
Neighborhood Connect 500 |
$43.99 |
Included |
Included |
$6.50 |
N/A |
$50.49 |
| MCI |
Neighborhood Unlimited |
$49.99 |
Included |
Included |
$6.50 |
N/A |
$56.49 |
| Vonage |
Residential Premium Unlimited Plan (with broadband fee included) |
$24.99 |
Included |
Included |
N/A |
$39.45 |
$64.44 |
| Vonage |
Residential Premium Unlimited Plan (without broadband fee included) |
$24.99 |
Included |
Included |
N/A |
N/A |
$24.99 |
* Average of nationwide cable modem prices as defined by Kagan Research - 7/6/06. "Naked" DSL is not available to most Alabama broadband users.
Note that the MCI and MCI plans also include a long distance plan, which skews their total cost somewhat. That said, for basic local phone service in Alabama, AT&T’s “Call Plan Unlimited – 2 Features Enhanced” and BellSouth’s “Basic Residential Line” plans stand out. While the MCI plans also include long distance calling, it is likely that a consumer can a cheaper standalone long distance plan to pair with either the AT&T or BellSouth local plans than to invest in one of the MCI bundles. While VoIP service with Vonage is an attractive option for consumers who are comfortable with this new technology, the total cost of the broadband connection should be factored in to cost calculations.
VOIP WATCH
Watch Out For Falling VoIP Quality, Says Study – VoIP service providers seem to be failing to keep up with the demands of more and more subscribers, according to a new study released recently by Brix Networks, a seller of network service equipment. Using data from more than 1 millions uses of the company’s “TestYourVoIP.com” quality testing website, Brix has concluded that typical VoIP telephone call quality has declined by nearly 20% over the past 18 months. VoIP technology is very susceptible to problems with latency (time delay in data delivery), packet loss, and other quality issues. Since voice communication is so time-sensitive, it is very difficult to carry on a conversation when clipping and other issues arise. Consumers considering making the switch to VoIP should keep the results of the Brix study in mind when making the decision. For consumers who already use their broadband connection for other uses, VoIP continues to be an attractive option from a cost point of view. However, a vary eye should be kept on service quality, as it can quickly render any cost savings meaningless if one pays for a service that doesn’t work. When shopping for VoIP service, consumers should be sure to ask their customer service representative what their company’s average ACQ (acceptable call quality) is. Anything below 80% should raise a red flag. For more information on the Brix study, click here.
TRAC AND YOU
What Features Would You Like to See on TRAC.org? – Here at TRAC, we are constantly searching for new ways to help telecommunications consumers navigate the often-confusing market for telecommunications devices and services. That said, we would like to ask for your input on what information you’d like to have at your fingertips on TRAC.org. More rate comparisons? Shopping tips? Contact information for your local phone companies? Let us know! E-mail your wish lists to trac@trac.org.
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"
