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Press Release Friday, June 23, 2000 |
Contact: |
WASHINGTON, D.C. -- Gene Kimmelman, co-director of Consumers Union
in Washington DC, made the following statement today regarding
AT&T's newly-proposed calling plans aimed at "low volume users"
-- consumers who make relatively few long-distance calls:
"This is a step in the right direction compared to the rate
increases that AT&T adopted two weeks ago.
"However, given that AT&T is saving more than a billion
dollars a year as a result of regulatory costs reductions, it is
disappointing that the majority of consumers who do very little
calling are still not going to see lower per-minute rates for most of
their calling.
"AT&T has responded to public criticism by offering more
choices to consumers. But there is very little pressure among long
distance providers to compete for the business of low-volume users.
No other companies have stepped in to the fray to compete, so
AT&T has offered only modest adjustments.
"For consumers who make relatively few long-distance calls and
tend to call during the week instead of the weekend, AT&T's
sixteen-cents-a-minute-everyday plan can provide significant savings.
This new plan is better than the current 19-26 cents a minute
weekday rates. However, the rates for Saturday or Sunday may be
substantially higher.
"For low-volume users who tend to call only on the weekends, the
ten-cent-Saturday plan and the ten-cent-Sunday plan offer some
savings. However, to take full advantage of the potential savings,
callers must shift all of their long-distance calls to that one day,
either Saturday or Sunday. During the other six days of the week,
callers would be paying an increase of three to seven cents a
minute."
Consumers Union, publisher of Consumer Reports magazine, is an independent nonprofit testing, educational and information organization serving only the consumers. We are a comprehensive source of unbiased advice about products and services, personal finance, health, nutrition and other consumer concerns. Since 1936, our mission has been to test products, inform the public and protect consumers. Consumers Union is located online at www.consumersunion.org
