Consumer Groups Press for Phone Savings

Consumer groups told the Federal Communications Commission that residential phone customers should receive the same savings that large businesses will when the government cuts fees for long-distance companies. The Consumers Union and the Consumer Federation of America asked the agency to require phone companies to pass along to all customers any savings stemming from reductions in “access” fees--payments long-distance companies make to local carriers to connect calls. Access fees, which are passed on to customers, account for about 40% of the average $22.50 monthly residential long-distance bill. Current regulations do not require long-distance companies to pass along access savings, though the companies say they do. An AT&T; Corp. spokesman said that having the government dictate how savings are used “is completely contrary to how a competitive marketplace works.”