|
Telecommunications
news
Long Distance costs are
soaring for residential consumers
May
30, 2000, Washington, D.C. -- The Telecommunications Research and
Action Center (TRAC) released its May 2000 TeleTips™ Residential
Long Distance Comparison Chart which shows significant increases in
monthly consumer bills due to higher fees and surcharges.
"Most residential long distance consumers are paying between
20% to 50% more today than they were in December of 1999,” said Samuel
A. Simon, Chairman of TRAC. "While
ads promote lower rates per-minute, the amount people pay at the end of
the month is increasing. This
is because of skyrocketing rates for related services, such as directory
assistance and calling cards; and because the universal service fees
charged have also been increased."
In a comparison of plans from the May 2000 TeleTips™
Residential Comparison Chart to the December 1999 chart, the results
reveal that the bottom line costs at the end of the month have
significantly increased, especially for AT&T and MCI Worldcom (see
table below).
"The trend seems to show that while the larger carriers have
lower per-minute rates, they are increasing fees and charges for other
services. The smaller
carriers have generally more moderate increases and in some cases have
decreased their total costs," said KC Choi, senior research
associate of TRAC.
Despite the sharp upturn in cost among the major carriers,
consumers can still save by considering the plans offered by other long
distance companies. Compared
to last year, some plans by the smaller carriers cost less than they did
in December 1999, which is an even better incentive to switch.
"TRAC constantly emphasizes the importance of selecting a
long distance plan that fits a consumer's need," says Choi.
"With the increase in the fees and surcharges, it is even
more crucial for consumers to look at alternatives."
Potential relief is in sight for some consumers.
The FCC may adopt any day a plan that will result in sharp
reductions in costs for low volume consumers and drive per-minute rates
down even lower than they are today.
“With the adoption of this plan, TRAC hopes that this upward
spike in consumer cost will come to an end. We are pleased that the FCC
has acted to adopt a plan that will for most consumers result in an
immediate rate reduction of about $1.15 a month, and for the lowest
volume users as much as $4.00 a month,” said Simon
back
to FAQ
|
