BUCKS WATCH
MCI Raising Rates on Three Long Distance Plans – Money for turkey and dressing could be a little bit tighter for legacy MCI long distance subscribers this Thanksgiving thanks to a trio of rate increases that were recently announced. These increases will be effective November 1, 2006. See the list below for details:
- One Savings II – Per-minute rate increases by 2¢ from 25¢ to 27¢
- One Extra - Per-minute rate increases by 2¢ from 25¢ to 27¢
- One Advanced - Per-minute rate increases by 2¢ from 25¢ to 27¢
In addition to the high per-minute rates on these three plans, all three also include a $6.99 monthly minimum charge. The monthly minimum charge is applied in lieu of per-minute charges when the subscriber fails to accrue at least $6.99 in charges in a given month. In effect, with the new 27¢ per minute charge, a plan subscriber who fails to make at least 26 minutes of calls per month will be hit with the charge. Subscribers on these three plans should take a look at other long distance plans. There are any number of available plans from MCI and other carriers that charge closer to 5¢ per minute with a similar monthly minimum charge or monthly service fee. For more information on these MCI changes, click here.
TRAC State-by-State Local Phone Plan Comparison: Delaware - (Note: This is the eighth in a series of articles comparing local telephone rates in each of the 50 states) Local phone service consumers in the First State should be prepared to pay in excess of $30 per month for unlimited local phone service with call waiting and Caller ID. TRAC’s survey of basic residential local phone plans available to Delaware consumers found that while there are a number of competitors offering service, none of the wireline providers stand out from the crowd as a money-saving option. Among traditional wireline providers, the cheapest plans were Verizon’s “Unlimited Service” plan at $30.96-$31.62 per month (depending on location) before additional taxes, fees, and surcharges (beyond the Federal Subscriber Line Charge) are added. The next cheapest option surveyed was Cavalier Telephone’s “Unlimited Local Calls” plan at $31.45 per month. For consumers with existing broadband connections, VoIP plans such as those offered by Vonage and Packet8 are very competitive for local phone service. Both companies currently offer bundled local and long distance service plans with unlimited (in the case of Packet8) or very large (500 minutes for Vonage) buckets of minutes for less than $20 per month. “If you are not comfortable with VoIP technology, then a basic local phone plan from Verizon or Cavalier is probably your best bet,” said TRAC Research Associate John Breyault. Subscribers to the most expensive wireline plan surveyed, Excel Telecommunications' "MyLine Basic Calling Plan," could save more than $200 per year by switching to the least expensive wireline plan surveyed, Verizon's "Unlimited Service" plan.
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 a variety of local service areas. Plans surveyed may not be available in every area of the state.
| TRAC Local Phone Plan Comparison: Delaware |
| Carrier |
Plan |
Monthly Service Fee |
Caller ID |
Call Waiting |
Federal Subscriber Line Charge |
Broadband Fee* |
Total |
| AT&T |
One Rate Local |
$28.95 |
Included |
$6.50 |
N/A |
$35.45 |
| Capital Telecommunications |
Loca Phone Service Plan |
$13.46 |
$6.75 |
$5.40 |
$6.44 |
N/A |
$32.05 |
| Cavalier Telephone |
Unlimited Local Calls |
$24.95 |
Included |
$6.50 |
N/A |
$31.45 |
| CloseCall America |
Local Package |
$27.94 |
Included |
$6.48 |
N/A |
$34.42 |
| CloseCallAmerica |
Residential Unlimited Service |
$11.83 |
$7.49 |
$5.99 |
$6.48 |
N/A |
$31.79 |
| Comcast |
Digital Voice Unlimited |
$54.95 |
Included |
N/A |
N/A |
$54.95 |
| Excel Telecommunications |
MyLine Basic Calling Plan |
$34.95 |
$3.95 |
Included |
$9.50 |
N/A |
$48.40 |
| IDT |
America Choice |
$28.95 |
Included |
$6.50 |
N/A |
$35.45 |
| 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 |
| SpectroTel |
Home Free Local Plus |
$32.95 |
Included |
$6.50 |
N/A |
$39.45 |
| USA Telephone |
Straight Talk, Great Rates Plan |
$26.95 |
Included |
$6.50 |
N/A |
$33.45 |
| Verizon |
Local Package |
$27.95 |
Included |
$6.50 |
N/A |
$33.45 |
| Verizon |
Two-County Calling Service |
$11.62 |
$7.50 |
$6.00 |
$6.50 |
N/A |
431.62 |
| Verizon |
Unlimited Service |
$10.96 - $11.62 |
$7.50 |
$6.00 |
$6.50 |
N/A |
$30.96 - $31.62 |
| 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.
Are You Really Getting All You’re Paying For With Caller ID? – According to a recent story on WCBS-TV New York, consumers might not be getting all they’re paying for with the $6-$10 typically spent on Caller ID every month. According to a test run by a consumer, 41% of calls to their home phone number were coming up as “unavailable” or “out of area” on her Caller ID. Tests run by WCBS showed an even greater percentage of phone numbers – 56% -- not appearing on Caller ID. The likely reason for this is that phone companies are not spending the money to keep their directories up to date. Consumers who are considering adding Caller ID as a feature on their local phone service should ask their carrier how up to date their directories are and if they have data on what percentage of calls come up as “unavailable” or “out of area” on a typical customer’s Caller ID. Anything more than 20-30% should raise alarm bells as to whether or not Caller ID is worth the often hefty price tag. To read the full WCBS article, 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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