BUCKS WATCH
TRAC State-by-State Local Phone Plan Comparison: Colorado - (Note: This is the sixth in a series of articles comparing local telephone rates in each of the 50 states) Local telephone subscribers in Colorado could save $100 per year or more by switching from a typical plan offered by the incumbent local phone company to a plan offered by a smaller competitive carrier or a VoIP service provider. TRAC’s local phone comparison compared 21 local and bundled local and long distance service plans from 12 carriers currently offering local phone service in the Denver, Colorado metropolitan area. The study focused on bare-bones local service plans and included the cost of the two most popular calling features – Caller ID and call waiting. TRAC’s study found that consumers with existing broadband connections could be in a position to save the most money versus traditional incumbent carrier-provisioned phone service by switching to a VoIP calling plan, such as those offered by AT&T, Packet8, or Vonage. Among traditional wireline carriers, the Basic Package offered by C-COM Affinity Telecom was the cheapest plan surveyed at $26.00 per month, excluding additional taxes, fees, and surcharges except for the $6.50 Federal Subscriber Line Charge. “Colorado consumers who are already comfortable using their existing broadband connections might want to consider switching to a VoIP calling plan in order to cut down on high local phone service bills,” said TRAC Research Associate John Breyault. “Those people who aren’t comfortable with VoIP technology or who don’t have a broadband connection can still save by exploring the plans offered by smaller local phone companies.”
A note on methodology: TRAC’s local phone plan survey takes in to account the prices for monthly service, the federal subscriber line charge, and the two most popular calling options – Caller ID and call waiting. Note that some local phone service plans are only offered as a bundle with long distance service, which skews the total cost comparison somewhat. TRAC’s survey covered plans being offered in the Denver metropolitan areas only. Plans surveyed may not be available in other areas of the state.
| TRAC Local Phone Plan Comparison: Colorado |
| Carrier |
Plan |
Monthly Service Fee |
Caller ID |
Call Waiting |
Federal Subscriber Line Charge |
Broadband Fee* |
Total |
| ACN |
Advantage Home w/Standard Long Distance |
$29.98 |
Included |
$6.50 |
N/A |
$36.48 |
| AT&T |
CallVantage Local Plan |
$19.99 |
Included |
N/A |
$39.45 |
$59.44 |
| AT&T |
CallVantage Local Plan
(without broadband fee) |
$19.99 |
Included |
N/A |
N/A |
$19.99 |
| C-COM Affinity Telecom |
Basic PAckage |
$19.50 |
Included |
$6.50 |
N/A |
$26.00 |
| C-COM Affinity Telecom |
Residential Line |
$14.19 |
$6.00 |
$3.80 |
$6.50 |
N/A |
$31.90 |
| Impact Telecom |
Basic Line |
$14.95 |
$5.95 |
$4.50 |
$6.50 |
N/A |
$31.90 |
| Impact Telecom |
Premium |
$26.99 |
Included |
$6.50 |
N/A |
$33.49 |
| Liberty Bell Telecom |
Silver |
$21.50 |
Included |
$6.50 |
N/A |
$28.00 |
| MCI |
Neighborhood Connect 200 |
$37.99 |
Included |
$6.50 |
N/A |
$44.49 |
| New Access Communications |
Colorado Prime Plan |
$36.95 |
Included |
$6.50 |
N/A |
$43.45 |
| Packet8 |
Freedom Unlimited |
$19.99 |
Included |
N/A |
$39.45 |
$59.44 |
| Packet8 |
Freedom Unlimited
(without broadband fee) |
$19.99 |
Included |
N/A |
N/A |
$19.99 |
| Pipertel |
The Mini-Monty |
$24.99 |
Included |
$6.50 |
N/A |
$31.49 |
| Qwest |
Choice Home |
$29.99 |
Included |
$6.50 |
N/A |
$36.49 |
| Qwest |
Choice Home Plus |
$34.99 |
Included |
$6.50 |
N/A |
$41.49 |
| Qwest |
Phone Line |
$14.88 |
$7.50 |
$6.00 |
$6.50 |
N/A |
$34.88 |
| Trinsic |
Trinsic Value |
$32.99 |
Included |
$6.50 |
N/A |
$39.49 |
| Vonage |
Premium Unlimited Plan |
$24.99 |
Included |
N/A |
$39.45 |
$64.44 |
| Vonage |
Residential Basic 500 Minutes Plan |
$14.99 |
Included |
N/A |
$39.45 |
$54.44 |
| Vonage |
Premium Unlimited Plan
(without broadband fee) |
$24.99 |
Included |
N/A |
N/A |
$24.99 |
| Vonage |
Residential Basic 500 Minutes Plan
(without broadband fee) |
$14.99 |
Included |
N/A |
N/A |
$14.99 |
* Average of nationwide cable modem prices as defined by Kagan Research - 7/6/06.
MCI Long Distance Subscribers In For Another Rate Increase – Many MCI long distance subscribers could be in store for more of a trick than a treat when the calendar turns over to October. This is due to the announcement from MCI that they will be raising the per-minute rate of the MCI Nationwide plan by 1¢ to 6¢ per minute. While 1¢ may not sound like a lot, consider the larger impact of the change. First, a typical 20 minute long distance phone call would now cost 20¢ more. Second, MCI charges a variety of percentage-based taxes, fees, and surcharges that are applied based on the amount of charges in a given month. For example, 10.5% of the total of all long distance charges and the monthly service is how MCI calculates the Federal Universal Service Fee (FUSF). The Nationwide Plan charges a $5.95 monthly service fee along with the 6¢ per minute rate. On a monthly bill with one hour of calling prior to the increase, the FUSF fee would have been 94¢. The 1¢ increase to 6¢ per minute increases the FUSF on that same bill to $1.00. In addition, MCI also charges a property tax surcharge equal to 2.5% of long distance charges. On the same sample monthly bill with one hour of calling prior to the increase, this surcharge would have been 22¢. With the 1¢ per-minute rate increase, the property-tax surcharge now increases to 24¢ per month. Additional percentage-based state and local taxes on subscribers’ bills could also increase the total bill thanks to the per-minute rate increase. While small per-minute rate or monthly service fee increases often seem fairly harmless on their face, it is the subsequent effect on other taxes, fees, and surcharges that can really take a bite out of consumers’ checkbooks. For more information on this change, click here.
TRAC IN THE NEWS
Industry Evolution Shouldn’t Leave Consumers Behind, Says TRAC – The telecommunications industry has experienced dramatic change over the past several years as it has evolved from a telephone-based to a multi-platform environment. However, this change doesn’t mean that consumer protections are outdated, said TRAC this week in an article the Columbus Dispatch. Ohio phone companies are currently lobbying to loosen many of the consumer protections in the state’s minimum service standards, which set certain rules that all telephone carriers must abide by. The Office of the Ohio Consumer Consumers’ Counsel is leading a coalition of government and consumer groups who are opposing the proposed changes. "The phone companies are absolutely right that the industry is changing dramatically,” the article quoted TRAC Research Associate John Breyault as saying. "From a consumer point of view, these changes shouldn’t mean consumers are less protected.” TRAC believes that in the face of a changing industry, consumer protections should not decrease. Rather, existing protections should be extended to new communications technologies such as wireless devices and VoIP services. To read the full Columbus Dispatch article, click here. To read more about the Office of the Ohio Consumers’ Counsel’s campaign, 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
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