Talkin’ Real Big Bucks : If You’re Making or Taking a Phone Call From Abroad, Be Wary

It started innocently enough. A relative who was visiting Mexico called Tom C. collect from a pay phone and engaged in a brief conversation. A month later, Tom got the bill: $64.41--about $6 a minute.

Had the call gone through his own long-distance carrier, it would have cost $12, Tom says. But the U.S.-based outfit that services the pay phone in Mexico ignored Tom’s complaint about gouging. Tom accepted the call, so he’s on the hook for the charges--no matter how excessive they may appear, the company told him.

Tom’s experience should serve as a warning to anyone who has relatives or friends visiting or living abroad, particularly in Mexico, where public pay phones and phones at hotels are often owned or leased by private companies.

Long-distance calls originating from a foreign country often go through “operator service providers” that can charge astounding rates. These charges are not prohibited by U.S. laws. If you accept the call, there is little you can do about the bill--aside from complaining.

Over the last several months, consumer groups and local phone companies have been inundated with complaints mirroring Tom’s.

Such problems are not completely new--isolated reports began cropping up about two years ago, says Nelson Santiago, a spokesman for Consumer Action in Los Angeles. But the complaints appear to be escalating rapidly. The Mexican government deregulated its telecommunications industry in January. But because the complaints have been coming in for some time, experts aren’t sure if deregulation has played a role.

But late last year, Santiago noticed that a host of little blue boxes--resembling freeway call boxes--had popped up along the streets in Tijuana. Because these boxes were emblazoned with such phrases as “U.S. operator direct” and “Direct connection to U.S. operator,” Santiago suspects that callers think they are connecting to one of the big U.S. long-distance carriers, such as AT&T;, Sprint or MCI. But, in fact, the calls go to U.S.-based operator service companies.

When Santiago picked up one of these phones, he got an operator for Capital Network of Orlando, Fla. Asked about the rate, the Capital Network operator said that if Santiago made a call, he’d be

charged $4.99 for the first minute and $4.49 for additional minutes, plus a $1.35 “international transport” fee. In addition, the company levies a $5 “location surcharge” and a $4.95 operator assistance fee in addition to imposing a three-minute minimum charge on all calls.

“With this company, a 15-minute call would cost $98.05,” Santiago says. “Calling the moon would probably be cheaper.”

Could you dial around and avoid these fees? No. The only number on the keypad that worked was the zero, Santiago says. And the Capital Network operator refused to transfer the call to another carrier.

In fact, the only way callers can avoid these fees is to hang up and find another phone. Many of the pay phone operators in Mexico, including Ladatel, allow you to connect to your preferred long-distance carrier. But if you use a phone that doesn’t, you may be unpleasantly surprised by the cost.

U.S. pay phone users have complained about high rates too. However, all U.S. pay phone operators must allow consumers access to their preferred long-distance carriers. That’s not the case with pay phones in Mexico, where the operator may deny access to any other long-distance carrier.

“It’s gotten to the point where we wanted to go public and tell people to be proactive about protecting themselves from these excessive charges,” said Pamela Corante, a spokeswoman for Pacific Bell in Los Angeles, which has fielded several hundred such complaints.

Corante urges consumers to report problems to their local phone companies, which can’t reverse the charges but can often provide assistance. If the long-distance carrier refuses to reduce the charges, consumers can also complain to Consumer Action, (213) 624-8327, or call the Federal Communication Commission’s consumer complaint line at (202) 632-7553.

Such complaints may help regulators and consumer advocates act to prevent similar problems in the future. In addition, the FCC passes on complaints to the offending companies, and these companies are required to respond to consumers within 30 days. FCC officials said that although they are not required to, some companies have reduced their charges.

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How They Rate

Long-distance calls originating in Mexico and other foreign countries often go through private companies known as operator service providers that can charge astounding rates. These charges are not prohibited by U.S. laws. The following are rates for a standard 15-minute collect call from Tijuana to Los Angeles:

Sprint: $7.88

AT&T;: $17.50

MCI: $25.58

Capital Network: $98.05

NOTE: These rates do not account for any specialized calling plans. Calling-plan rates may be substantially cheaper.

Sources: Phone companies, Consumer Action