Survey: Comparing Phone Rates Pays Off
Long-distance calling options are many and prices are competitive, but residential consumers as well as small and larger businesses still can save money by shopping around, according to a private survey.
The report by the Telecommunications Research & Action Center shows that most of the long-distance companies offer various calling plans, each benefiting different calling patterns.
The nonprofit consumer group recommends that residential consumers periodically compare available options--annually for those whose long-distance costs are less than $10 a month and more often when monthly bills are more than $25.
Although cost gaps between competing companies and plans have narrowed, “the risk in picking the wrong plan can result in paying substantially more in long-distance service,” said Samuel A. Simon, a consultant to the consumer group.
Savings of 25%
The survey outlined the options available from eight of the largest long-distance carriers and the costs, calculated in various call volumes, of the plans.
The survey also compared costs for businesses that spend up to $8,000 a month on long-distance calling. For these business callers, some of the calling plans available--including new “virtual WATS” plans--can save 25% over standard rates of even the lowest cost companies, TRAC says.
Unlike traditional WATS service, the new “virtual WATS” plans offered by all the major companies require no special installation or dedicated lines.
The residential and small business comparisons include the option of access-code dialing, or casual calling, which allows a caller to reach a long-distance carrier other than their chosen one by dialing an access code, 10 plus a different three-digit number for each company. This option can be cheaper than some “dial 1” plans at lower call volumes, but volume discounts are generally not available with code dialing.
A comparison of the costs for a sample residential monthly bill--20 calls totaling 380 minutes, 70% of which are calculated at night-weekend rates--showed AT&T;’s Reach Out America bonus plan was the cheapest at $53.84.
Samples of Rates
MidAmerica standard service followed at $54.06, US Sprint standard service at $54.60, AT&T;’s Reach Out America basic plan at $55.14, US Sprint 10333 and 10777 access at $55.24, and MCI standard rates at $55.62.
When a sampling of 33 calls were priced, US Sprint standard rates were least expensive, followed by US Sprint 10333 and 10777 access, MCI standard rates, MCI’s Prime Calling Option and the AT&T; Reach Out America plans.
Another sample of 20 calls, with 70% of the 380 minutes calculated at daytime rates, was analyzed to assess the costs a small business might pay. In that comparison, MCI standard rates were least expensive at $88.88, followed by US Sprint standard rates at $89.32, Allnet standard service at $89.95, TDX standard service at $90.08 and MCI 10222 access at $90.03.
The survey’s residential and small business results are available in a chart for $1, the business chart for $10. Include a stamped, self-addressed, business-size envelope and mail to TRAC, P.O. Box 12038, Washington, D.C. 20005.
