Extra Charges Raising Cost of Interstate Calls : Firms Allow Fewer Free Requests for Information

Although most basic interstate telephone rates have remained unchanged since spring, extra charges for directory assistance and other adjustments have raised overall long-distance calling costs, according to a new survey of phone rates.

The consumer survey by the Telecommunications Research and Action Center, a nonprofit group that tracks long-distance rates for residential and business callers, found that some carriers have reduced the number of free information calls and cut the hours of the cheapest calling period.

“Rates haven’t been going down, and there have been all sorts of adjustments that have been nibbling at the edges to maximize revenue from each subscriber,” said Samuel Simon, a consultant to the center.

“This is a pattern we expect to see in the future,” he added.

Interstate long-distance rates are due for another round of reductions soon to reflect savings from a 60-cents-a-month increase in the line charge that subscribers pay to help maintain the local phone network. The charge will be added to the existing $2.60 monthly line charge on Dec. 1.

Fewer Free Calls

American Telephone & Telegraph Co. has proposed to the Federal Communications Commission that its rates drop by an average 3.8% to reflect the line charge increase. AT&T; competitors do not have to cut their rates, but they often do to remain competitive with the industry leader.

TRAC’s survey found increases ranging from 1% to 5% for most long-distance carriers since its last survey on March 31.

Among the increases reflected in the group’s rate comparison chart were a reduction by AT&T; and MCI in the number of free long-distance information calls from two to one and MCI’s increase in the cost of such calls to 58 cents from 55 cents, TRAC said.

Also, Allnet has begun applying evening rates rather than the cheaper night-weekend rates to its Saturday 5 to 11 p.m. calling period, and the company is applying a 5% surcharge on callers using its equal access service if they don’t have an account with Allnet, TRAC said.

In addition, Western Union raised its rates by about 5% since the last survey, TRAC said.

TRAC advises residential and business subscribers to re-evaluate their long-distance service periodically to see whether there are lower cost alternatives.

“The problem is that consumers made their decision once, and have settled into one company and plan,” said David Wagenhauser, a TRAC lawyer who managed the survey.

US Sprint Cheapest

The TRAC survey compares the cost of long-distance monthly bills with 33, 123 and 303 interstate calls of various distances. The cost of three long-distance directory assistance calls was also figured into the bills.

For the 33-call comparison, the cheapest plan was US Sprint standard rates at $33.60, US Sprint 10333 and 10777 access rates at $34.20, MCI standard rates and 10222 access at $34.88, AT&T;’s Reach Out America Day Option at $35.09 and AT&T;’s Reach Out America Evening Option at $35.27.

ITT standard rates were next at $35.37, followed by AT&T;’s Reach Out America Basic Plan, $35.45; Allnet standard rates, $35.78; AT&T; standard rates and MidAmerican standard rates, $35.97; ITT 10488 access longer distance, $36.04, and Allnet 10444 access, $37.51.