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

* Average of nationwide cable modem prices as defined by Kagan Research - 7/6/06.

AT&T’s “Simplified” Rates are Really Rate Increases - AT&T recently announced a new round of long distance rate increases. First, effective September 1, the monthly recurring charge on the AT&T One Rate Simple Plan will increase by $2 to $7 per month. Second, the effective rates that most people pay on the AT&T Price Protection Plan will be increasing. According to the company, the new rates will be “simplified” by charging a flat 15¢ per minute rate 24 hours per day. However, for many consumers who make most of their long distance calls during the nights or weekends, the rate will likely be going up. This is because prior to the change, AT&T charged a different rate for day, evening, night, and weekend calls, but they also calculated the rate based on the distance called. For night and weekend calling, the rate ranged from 10.2¢-14.45¢ per minute. Evening minutes ranged from 11.9¢-19.55¢ per minute and daytime costs were 20.4¢ to 28.9¢ per minute. In addition, AT&T will begin charging a $1.00 monthly recurring charge on the Price Protection Plan. Since most residential users tend to make their long distance calls in the evening or on nights and weekends, the effective rate that they pay once the flat 15¢ per minute rate and the $1.00 recurring charge take effect will be higher. Apparently, “simplified” means “more expensive” at AT&T. To read more about these changes, click here.

TRAC AND YOU

TRAC Remembers Sylvia Siegel - The consumer movement lost one of its leading lights last week when utility reform advocate Sylvia Siegel passed away at the age of 89. Siegel was the founder of the Utility Reform Network (TURN), a leading California consumer group which has successfully protected the rights of consumers in the state from anti-consumer practices by telephone, electricity, water, and gas companies. Among her many achievements as a tireless representative of California consumers before the California Public Utilities Commission, Siegel exposed overcharges totaling $345 million (more than $1.6 billion in 2007 dollars) by Pacific Gas and Electric, which was forced to refund its customers. Siegel was also instrumental in blocking efforts by Southern California Edison to charge consumers a monthly fee when they did not use any power. Battling all the way to the Supreme Court, Siegel got Pacific Telephone to refund $341 million to customers in 1979. Under Siegel’s leadership, TURN became one of the most influential consumer groups in the U.S. Thanks to California’s large role is helping set national utility policies, it is not a stretch to say that Siegel played a large role in helping protect utility consumers nationwide, not just in California. The consumer movement is forever indebted to the work of Sylvia Siegel and her legacy, one that will not soon be forgotten. To read more about the life and work of Sylvia Siegel, click here or visit www.turn.org.

TRAC IN THE NEWS

Lifestyle a Major Factor in Deciding to Cut the Cord, says TRAC - More and more consumers are considering cutting the cord these days. By some estimates, as many as 1 in 5 consumers are seriously considering cutting the cord with their old wireline phone companies. Before you switch, however, consider whether your lifestyle is a good fit for the wireless-only life. "A young person or an on-the-go businessperson who spends only a few hours of the day at home could be a good candidate since they are unlikely to be using their home phone line anyway," said TRAC Research Associate John Breyault recently in an article on CNNMoney.com. "A stay-at-home mom or a family with school-age children who are at home a lot will probably find that the added costs of extra wireless phone plans outweighs the cost of keeping an 'all-you-can-eat' local home phone line," said Breyault. The trend towards cord-cutting is partly attributable to the amount of investment that carriers are making in their networks, which is increasing customer satisfaction with their carriers and thus making them more likely to switch completely, said TRAC chairman Sam Simon. To read the full CNNMoney.com 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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