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TRACNotes

Vol. 5  # 28 -- July 13, 2007
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African-American Broadband Adoption Outpacing General Population - The Pew Internet and American Life Project this week released its latest figures on home broadband adoption. According to the group, 47% of all adult Americans have a broadband connection at home, a 5% increase over the previous year. Users who reported making a phone call from their home computer continues to make up a small portion (3% of broadband users, 2% overall) of the total population. This suggests that PC-to-PC calling applications like Skype continue to be a product limited to a small number of users. Adoption among African-Americans grew at a faster rate (9%) than the general population, though only 40% of African-Americans have broadband at home. Over the past two years, home broadband connections among African-Americans nearly tripled, from 14% to 40%, according to Pew’s statistics. Only 29% of Latinos have a home broadband connection. While dial-up connections continue to be replaced by home broadband, more than 1 in 5 (23%) of Americans still connect to the Internet the “old-fashioned” way. Internet users in rural areas continue to lag behind their urban counterparts in broadband connectivity, with only 31% of rural residents having broadband at home. Home broadband continues to correlate closely with age, education levels, and income according to Pew’s figures. 63% of 18-29 year olds have home broadband versus 15% of those 65 or older. 70% of Americans with a college degree have broadband connections compared to 21% of those without a high school degree. 76% of Americans with an annual income above $75,000 have broadband compared to 30% of those making $30,000 or less per year. To read the full report, click here.



TRAC State-by-State Local Phone Plan Comparison: Texas - (Note: This is the forty-third in a series of articles comparing local telephone rates in each of the 50 states.) Residents of the Longhorn State are fortunate to have some of the least expensive local phone service in the country. In most major metropolitan areas of the state, AT&T is the incumbent local phone provider. Their Primary Residential Line plan is their basic level of service. With Caller ID, call waiting, and the $6.50 Federal Subscriber Line Charge included, we estimate that a month of local service will cost $21.50. Compare this to states like Oklahoma, California, and Colorado where the same plan costs an estimated $22.75, $24.47, and $33.31 per month, respectively. Verizon also offers local service is the old GTE service areas (primarily around the Dallas-Fort Worth metroplex), but charges more for their basic local service with the same features ($25.85-$37.10, depending on location, for their “Flat Rate Service” plan). As in other state with vast rural stretches, Texas has a large number of rural cooperative and independent phone companies. Our survey found that customers of these plans tended to pay more for local service than their counterparts in the AT&T or Verizon service areas – typically between $25 and $35 per month for unlimited local service with Caller ID and call waiting. AT&T’s service was so competitive, in fact, that Texas is one of the few states we have surveyed where local phone service from the dominant incumbent carrier was close in price to third-party VoIP carriers. Of course, the VoIP carriers such as Packet8 and Vonage also include long distance calling in their monthly service fees, so one can’t make an exact “apples to apples” comparison. Still, for customers who make mostly local calls and who are considering getting VoIP in place of wireline service, the total price difference is not as great as in other parts of the country. Cable providers like Charter Communications and Time Warner are offering telephone service in Texas (generally bundled with unlimited long distance), but it does not currently offer any substantial price savings off of wireline phone.

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: Texas
Carrier Plan Monthly Service Fee Caller ID Call Waiting Federal Subscriber Line Charge Broadband Fee* Total
ACN Standard Long Distance (includes local) $27.99 Included $6.50 N/A $34.49
Alenco Communications Inc. Basic Service $17.00 - $19.00 $6.50 $1.40 $6.50 N/A $31.40 - $33.40
Americom Simplicity Local $18.99 $9.95 $2.80 $6.50 N/A $38.24
AT&T Primary Residential Line $15.00 Included $6.50 N/A $21.50
Brazonia Telephone Company Residential Line $20.00 - $30.00 $4.50 $1.75 $6.50 N/A $32.75 - $42.75
Cameron Communications Local Service $19.76 $4.95 - $7.50 $3.50 $6.50 N/A $34.71 - $37.26
Cedar Valley Communications Enhanced Plan $45.00 Included $6.50 N/A $51.50
Central Texas Telephone Cooperative Local Calling Plan $15.00 $3.50 - $6.50 $1.50 $6.50 N/A $26.50 - $29.50
Cleartel Cleartel Simple $19.95 Included $6.50 N/A $26.45
Charter Communications SIMPLE Plan $49.99 Included N/A $39.45 $89.44
Comanche County Telephone Co. Local Telephone Service $22.00 $4.95 $1.75 $6.50 N/A $35.20
Community Telephone Co. Local Telephone Service $25.00 $6.50 $2.50 $6.50 N/A $4.50
Dell Telephone Coop. Basic Plan $30.00 - $35.00 $5.00 - $6.50 $1.50 $6.50 N/A $43.00 - $49.50
Eastex Telephone Cooperative New Service Plan $20.00 - $25.00 $4.95 - $6.50 $1.00 $6.50 N/A $32.45 - $39.00
Embarq Basic Home Phone Service $29.95 Included $6.50 $N/A $36.45
Five Area Telephone Local Service $20.00 $4.95 $1.50 $6.50 N/A $32.95
GVTC Communications Local Calling $7.10 - $7.75 $7.00 $2.25 $6.50 N/A $22.85 - $23.50
Hill Country Telephone Cooperative Local Access $6.25 - $9.50 $3.50 $1.75 $6.50 N/A $18.00 - $21.25
Lake Livingston Telephone Company Basic Local Plan $15.00 $7.00 $2.25 $6.50 N/A $30.75
Nortex Communications Local Phone Plan $7.64 - $9.00 $6.25 $1.75 $6.50 N/A $22.14 - $23.50
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
Riviera Telephone Company Residential Basic Local Service $17.65 $4.95 $1.50 - $2.00 $6.50 N/A $30.60 - $31.10
Sage Telecom Simply Savings Essential $24.99 Included $6.50 N/A $31.49
Santa Rosa Telephone Cooperative Basic Service $24.63 $5.95 $1.60 $6.50 N/A $38.68
Southwest Texas Telephone Company Local Phone Plan $8.00 $4.95 $1.50 $6.50 N/A $20.95
Time Warner Digital Phone $39.95 Included N/A $39.45 $79.40
Trinsic Home Connection 500 $35.99 Included $6.50 N/A $42.49
Trinsic Home Connection Unlimited $38.99 Included $6.50 N/A $45.49
Valley Telephone Cooperative Basic Service Plan $10.65 - $12.65 $4.00 - $6.00 $1.00 $6.50 N/A $22.15 - $26.15
Valley Telephone Cooperative Save-A-Bundle $19.99 Included $6.50 N/A $26.49
Verizon Local Package $29.99 Included $6.50 N/A $36.49
Verizon Flat Rate Service $7.10 - $18.35 $9.25 $3.00 $6.50 N/A $25.85 - $37.10
Verizon Nassau Bay Flat Rate $16.00 $9.25 $3.00 $6.50 N/A $34.75
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.


TRAC IN THE NEWS


Seniors Should Not Be Afraid of Cell Phones, Says TRAC - Today’s cell phones seem to be made to do just about everything. They can be used to snap photos, surf the Web, play music, text friends, and seemingly hundreds of other things. While feature-rich handsets may appeal to some, for many, especially seniors, the complexity of the modern generation of handsets can be intimidating. Increasingly, cell phone makers are designing simple to use handsets that appeal to seniors and others who just want a simple phone that makes calls with as little fuss as possible. The marketing, aimed directly at seniors, represents a new niche in the cell phone industry and recognition of the technological needs of seniors, said TRAC Research Associate John Breyault in Thursday’s edition of the Salinas, California Californian newspaper. "Certainly seniors could be overwhelmed," he said. "On the other hand, a lot of these phones that have extra bells and whistles can still be used just to make a phone call." Consumers who have elderly relatives that may be put off by a cell phone’s complexity should sit down and show them the basics to make sure they know how to use the device in an emergency. Also, if you’re planning to buy a cell phone for a relative who may be hard of hearing or who has a hard time manipulating small objects (like the keypad on a cell phone), consider taking them with you to the cell phone store to try out handsets prior to buying. There’s nothing worse than buying a handset (and paying for service) that never gets used. To read the full Californian 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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