TRAC COMMENTS ON NEW MCI RATE PLANS

Read The Fine Print First

Washington, D.C. -- August 9, 1999 -- TRAC, the Telecommunication Research and Action Center, reacted today to the announcement by MCI/Worldcom of their new $.05 Everyday rate plans with the following statement:

• "Consumers need to read the fine print first. The plans sound great, but MCI/Worldcom has not been up-front in highlighting that there continues to be a $5.00 a month minimum charge associated with these new plans.

"The plans announced today involve a lower per-minute rate for night and week-end users. The charge is $.05 a minute for calls made between 7 p.m. and 6:59 a.m. week days and all day Saturday and Sunday. This per-minute rate is as good as it gets, but the question consumers must ask is: 'How much will I pay at the end of the month.'

"The answer to that question, as usual, depends on a consumers unique calling pattern. TRAC's initial assessment based on its TeleTips' Chart is that this plan saves money primarily for the heaviest users. Indeed, with the $5.00 minimum and $1.95 fee, MCI/Worldcom customers on the existing MCI One Savings plan may in fact save more.

"TRAC's analysis suggests that the following types of customers will save the most from this plan:

• Someone who is already an MCI customer and therefore already pays the $5.00 a month minimum.
• Someone who can call primarily during night and week-end time periods.
• Someone who spends $70 or more each month on interstate long distance calling.

"Consumers also have to be aware of the rates for day time calling on these plans. The basic $.05 Everyday plan charges $.25 a minute during the day, among the highest rates for this time period. This just reinforces the need to read the fine print, understand when and how you call and make a careful comparison before switching to a new plan"

This comment can be attributed to Samuel A. Simon, Chairman of the Board of TRAC. For more information, consumers can order TRAC's TeleTips' Residential Long Distance Comparison Chart. The Chart provides a detailed comparison of all major carriers and calling plans for consumers based on 18 different calling baskets of typical calling patterns. Copies of the chart are available from TRAC for $5.00, and a stamped self-addressed return envelope sent to Box 27279, Washington, DC 20005.

TRAC also sponsors the Web Pricer, and on-line call comparison guide powered by Salestar technology. Web Pricer is available at www.trac.org.

WebPricer is a free service of ©Telecommunications Research and Action Center, 1999, all rights reserved.

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