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Resellers, Cards Offer Good Deals On Calls ; Consumer Survey Urges Users To Shop, Avoid Basic Rates

Posted on: Tuesday, 1 July 2003, 06:00 CDT

Small "no-name" resellers such as Everdial and prepaid cards such as the Sam's Club AT&T card still offer the cheapest long-distance telephone rates, according to the annual survey by Colorado's utility watchdog.

Cellular telephone plans that include long-distance minutes also are becoming an attractive option to many.

The important thing is for consumers to shop around and choose a plan based on their usage and calling patterns, according to the Office of Consumer Counsel.

The worst thing is to sign up with one of the major carriers - AT&T, MCI and Sprint - but fail to specify a discount plan. In that case, consumers will be automatically "defaulted" to the carrier's basic rate - which can be as high as 35 cents a minute.

"The basic rates are the worst rates; people should get on discount plans," said Dian Callaghan, administrative director of the Office of Consumer Counsel.

Callaghan also said consumers should be aware that AT&T, MCI and Sprint have added new fees since last year.

Nationally, long-distance rates continue to fall with the average customer payment now at around 8 cents a minute and $12 a month, according to the most recent study by the Federal Communications Commission.

A reseller is usually a small company that doesn't have its own network so it resells the services of a major network. The voice quality is the same, but the rates are usually cheaper, Callaghan said.

She said her office found that the "Everdial 1" plan is the best all- around deal at 4.9 cents a minute for interstate calls and 7.9 cents a minute for in-state long-distance calls with no monthly fee or minimum.

If a customer makes only interstate calls, ECG Long Distance becomes the best choice with its 3.5 cent or 3.9 cent per minute plans, she said.

In general, companies charge more for in-state long-distance than for interstate long-distance.

The best prepaid card is the Sam's Club AT&T card, which is only 3.47 cents a minute with no hidden fees and no expiration date, Callaghan said.

AT&T spokeswoman Timi Aguilar said the country's largest long- distance carrier agrees that customers should choose one of the company's discount plans based on their needs rather than automatically paying the high basic rate.

But she said AT&T would "beg to differ" that customers get the same quality from a reseller as they would from AT&T. Customers, she said, need to consider service, billing accuracy and other factors.

A big development since last year is that local phone provider Qwest Communications won permission to re-enter the long-distance market in Colorado.

"I think we have very competitive rates," said Mark Pitchford, Qwest senior vice president of consumer marketing.

Qwest, in fact, took issue with some of the figures in the Office of Consumer Counsel report, saying that they didn't reflect rate cuts made in May. For example, Qwest announced a 5-cent-a-minute saver plan for high users as well as unlimited long-distance for $20 a month for customers with a phone package.

Major carriers are increasingly "bundling" local, long-distance and Internet services.

Callaghan said the various plans are relatively comparable.

The Colorado Office of Consumer Counsel's long-distance rate comparison report is available on its Web site at www.dora.state.co.us/occ/Consumer_News_062403.pdf or by calling the office at (303) 894-2121.

INFOBOX

Cheapest long-distance plans

(cents per minute)

* Low-to-average usage (30-120 minutes a month): Everdial (4.9), C-COM (5.5), Total Call International (4.4)

* High usage (300 minutes a month): Everdial (4.9), C-COM (5.5), MCI (5, plus fees)

* Interstate calls only: ECG (3.5), Pioneer Telephone (3.5), Total Call International (4.4)

* In-state calls only: Everdial (7.9), Telecom Affiliates (7.9), C-COM (7.9)

Source: Colorado Office of Consumer Counsel

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