Press Release
November 4, 1997

Contact:
Kathleen McShea, mcshka@consumer.org
(202) 462-6262
Consumers Union Washington D.C. Office

Broken Promises from AT&T and FCC to Yield Higher Phone Bills

New AT&T Rate Plan Could Mean Higher Rates on Night-time Weekday Calls

 

WASHINGTON Gene Kimmelman, the co-director of the Washington Office of Consumers Union issued the following statement reacting to changes announced Tuesday for AT&T's basic interstate rate schedule for residential direct-dialed calls:

"While we applaud simplicity, we are fearful that AT&T's pricing includes a significant rate hike for weeknight callers. With their old pricing plan, calls placed between 11 PM and 8 AM cost the same as weekend calls. Now consumers face potential rate hikes for weeknight and early morning calls.

"Earlier this spring, AT&T and the Federal Communications Commission made a promise to consumers to cut the fat out of long distance pricing and deliver lower long distance phone bills. This promise appears to be unraveling.

"Although AT&T originally delivered the assured 15 percent reduction in basic rates for night time and weekend calling, it appears under this new pricing scheme they are going back on their word and some of these price reductions will soon disappear. Consumers Union is also concerned that the FCC may not have followed through on its end of the bargain to cut the fat out of long distance pricing. When the FCC fails to cut the fat out of long distance pricing, companies like AT&T face greater difficulties in reducing rates.

"Consumers Union calls on the FCC to immediately investigate why consumers will receive a rate increase from AT&T and demands the FCC deliver on its promise to cut the fat out of long-distance pricing."

###

 


[ Health ] [ Finance ] [ Food ] [ Product ] [ Other ]
[ About CU ] [ News ] [ Tips ]
[ Home ]


Please contact us at: http://www.consunion.org/contact.htm
All information ©1998 Consumers Union