Consumer Action News

Released: February 01, 1997

1997 Long Distance Phone Rates Pricing Survey

PLEASE NOTE: This 1997 publication is not current, and should be used only as historical information.

Survey Notes
Plans Under $10
Plans From $10-$25
Plans Over $25
Best Plan
International Calling Plans
The Story
Glossary
Plan Details

Survey Notes

The following chart shows the lowest per-minute rates on interstate calls from 14 phone companies, during the Daytime, Evening and Night/Weekend rate periods. (See glossary following chart for rate period hours.) Rates at the top of the chart are for callers with small monthly bills--under $10. The next section is for people with bills of $10-25, and the third section covers larger bills.

Most of the carriers offer more than one calling plan. The rates quoted are connected to specific calling plans. The rate shown for a carrier in the Daytime category may reflect a different calling plan than the rate shown for the same carrier in the Night/Weekend category. The key immediately after the chart notes which plans are described. This allows you to pick the carrier and calling plan with the best rates during the hours you make the most calls.

Some plans have monthly fees (AT&T, Excel, Trans National). Call the companies for more information. Rates do not reflect additional calling circle discounts offered by some carriers. Toll-free numbers for all the companies appear with the calling plan descriptions following the chart. Use the chart and listings only as a guide—rates and calling plans can change at any time.

Plans under $10

Carrier	Daytime (per minute)	Evening (per minute)	Night/Weekend (per minute)
AT&T	15¢	15¢	15¢
Express Tel	15¢	15¢	15¢
Frontier	25¢	10¢	10¢
LCI	15¢	10¢	10¢
Matrix	13.9¢	9.9¢	9.9¢
Sprint	25¢	10¢	10¢
TransNational	14.7¢	9.5¢	9.5¢
US Long Distance	22¢	12¢	12¢
Working Assets	30.5¢	18.5¢	16.5¢
WorldCom	25¢	10¢	10¢
Plans with monthly fees
AT&T	10¢	10¢	10¢
Excel Communications	17¢	9¢	9¢
MCI	15¢	15¢	15¢
TransNational	10¢	10¢	10¢

Plans From $10-$25

Carrier	Daytime (per minute)	Evening (per minute)	Night/Weekend (per minute)
AT&T	15¢	15¢	15¢
Express Tel	15¢	15¢	15¢
Frontier	25¢	10¢	10¢
LCI	15¢	10¢	10¢
Matrix	13.9¢	9.9¢	9.9¢
MCI	15¢	15¢	15¢
Sprint	25¢	10¢	10¢
TransNational	14.7¢	9.5¢	9.5¢
US Long Distance	22¢	12¢	12¢
Working Assets	28.9¢	17.5¢	15.6¢
WorldCom	25¢	10¢	10¢
Plans with monthly fees
AT&T	10¢	10¢	10¢
Excel Communications	17¢	9¢	9¢
TransNational	10¢	10¢	10¢

Plans over $25

Carrier	Daytime (per minute)	Evening (per minute)	Night/Weekend (per minute)
AT&T	15¢	14¢	12¢
Express Tel	15¢	15¢	15¢
Frontier	25¢	10¢	10¢
LCI	15¢	10¢	10¢
Matrix	13.9¢	9.9¢	9.9¢
MCI	12¢	12¢	12¢
Sprint	25¢	10¢	10¢
TransNational	14.7¢	9.5¢	9.5¢
US Long Distance	22¢	12¢	12¢
Working Assets	22.8¢	13.8¢	12.3¢
WorldCom	25¢	10¢	10¢
Plans with monthly fees
AT&T	10¢	10¢	10¢
Excel Communications	17¢	9¢	9¢
TransNational	10¢	10¢	10¢

Finding the best calling plan for you

Each person's calling pattern is different. Review several months' worth of your long distance bills. Look for patterns.
All two-rate plans are not created equal. Some carriers' plans begin to offer the lowest rate at 5 or 6 p.m. instead of at 7 p.m. If you make many calls between 5 and 7 p.m., these plans may result in a savings for you.
If the amount of your monthly bill is less than $25, consider a flat rate plan.
Do you make many calling card calls or use a cellular phone? Look for a plan that includes these calls.
You may find that the best plan for you is the one you already have. If you are happy with your plan, stick with it--it might not be available to new customers if you want to switch back later.
When you switch long distance carriers, your local phone company charges you a one-time fee, usually around $5. Some long distance carriers will reimburse new customers for this expense.

International Calling Plans

International plans offer discounts or discounted flat rates on calls to certain countries at peak and off-peak time periods. The fact that rates and time periods vary by country makes it difficult to give anything more than general descriptions or advice about international calling plans.

Just because you are enrolled in a domestic (U.S.) calling plan does not mean you will get a discount on international calls. With most carriers, you need to sign up separately for domestic and international calling plans. (One carrier, Matrix, offers two plans with savings on both domestic and international calls.)

Seven of the 11 carriers surveyed that offer international plans charge a monthly fee, so it pays to use these plans only if you make enough calls overseas each month to offset that fee.

To choose the best plan, you will have to know which countries you call on a regular basis. Compare the rate periods to determine if the lowest rates (often called off-peak, value or economy rates) are offered at a convenient time for your calls. CA found that some carriers offer one flat rate good for 24 hours to specific countries, even thought they have two rate periods for other countries.

Many companies promise a certain discount off their basic international rates to people who sign up for a calling plan. However, the quoted percentage may be good only on off-peak rates, and a smaller discount may apply on calls during peak time periods.

To find the best international plan for you, compare each carrier's monthly fees, basic per-minute rates, how the rate periods correspond to your calling patterns, and how much savings the plan offers during each time period.

The Story - Basic Long Distance Phone Rate up about 25% sine 1992

(Excerpted from CA News)

Despite competition from smaller carriers and now a local phone company, the basic long distance rates charged by the three largest long distance carriers are about 25% higher than five years ago, according to a new survey by Consumer Action (CA).

The Big Three carriers—AT&T, MCI and Sprint—still dominate the long distance market, but there are many smaller carriers that are wooing new customers. These smaller companies, such as LCI, WorldCom, Matrix and Frontier, offer the same type of calling plans now favored by the Big Three.

(CA has tracked the basic rates charged by AT&T, MCI and Sprint for several years. The organization does not have access to the rates of other carriers over a five-year period.)

CA said that the rate increases make it more important than ever to sign up for a calling plan. Smart consumers can more than offset these increases by taking advantage of flat rate calling plans, now offered by virtually every carrier.

CA found that by using any one of the Big Three carriers' top plans, consumers whose calls are split between rate periods would save about 31% per month.

"Instead of stimulating differences, competition seems to have prompted every carrier to follow the same formula," said CA's Linda Sherry.

Thirteen of the 14 carriers surveyed by CA now offer flat rate calling plans. In these plans, long distance charges are based on a per-minute rate, not on mileage.

The consumer group found two variations on flat rate plans. One offers a single per-minute rate good at all times. The other has two rates: one higher per-minute rate for "peak" weekday hours and another, lower rate for "off-peak" times such as evenings, nights and weekends.

The new survey includes GTE, which entered the long distance market in January with a one-rate calling plan that undercut similar plans offered by MCI and AT&T by $.01 per minute.

CA noted that with only two types of calling plans to choose from, it's easy to pick one that's right for you.

"Most people will save a bundle on long distance calls by using one of the flat rate plans," said CA's Ken McEldowney. "If you make all or most of your calls during the daytime, use a one-rate plan that's good day and night. If you call a lot in the off-peak hours, look for a two-rate plan."

Using a format it developed last year, CA calculated the lowest per-minute rates available from the 14 carriers, factoring in their best calling plans where applicable.

The findings are presented in an easy-to-use chart that considers differences in calling patterns. It is divided into three sections, based on the amount of your monthly bills: less than $10, between $10-25, and more than $25. The chart gives the lowest rates for each company in the three rate periods: Day, Evening and Night/Weekend. These categories allow people to compare rates at a glance, based on their own long distance usage.

"Because of the many flat rate plans available, we found that people whose monthly bills are less than $10 can save more money than ever before," noted McEldowney. "Until a couple of years ago, most popular calling plans offered volume discounts on monthly bills. Many of these discounts were not available to consumers who spent less than $10 on long distance calls."

CA's surveyors discovered that the basic rates charged by AT&T, MCI and Sprint have sharply increased by almost identical percentages since 1994.

CA applied the discounts available through each of the Big Three carriers' current calling plans to a "calling basket" of four interstate calls of varying duration made in each of the standard rate periods. The organization found that all three offered the same savings of 31%. (The plans used are AT&T's One Rate, MCI One and SprintSense.)

This year, without discounts, AT&T charged $25.52 for the calls, MCI, $25.40 and Sprint, $25.52. Using a calling plan, the totals dropped to $17.55 for AT&T, $17.54 for MCI and $17.55 for Sprint.

The calling plan savings in 1997 are far greater than five years ago. In 1992, consumers would have saved only 3% off the price of these same calls if they had been enrolled in the half-hour version of AT&T's Reach Out America plan. Callers who subscribed to MCI's PrimeTime or SprintPlus plans in 1992 would have saved about 18%.

"At CA, we've always advised consumers to use a calling plan," said Sherry. "Now that advice is more valuable than ever."

Glossary of long distance terms

Domestic calls: Long distance calls made within the United States.
Calling circle: Callers receive lower rates when they call a customer of the same long distance company they are signed up with.
Flat rate: Long distance charges based on a per-minute charge, not on mileage.
Interstate: Between states.
International: To another country.
Intrastate: Within the same state.
Rate period: Standard rate periods for long distance calling are: Day, the most expensive; Evening, less expensive; and Night/Weekends, the least expensive. Unless otherwise noted, Day Rates apply from Monday-Friday from 8 a.m.-5 p.m.; Evening Rates, Sunday-Friday from 5 p.m.-11 p.m. and Night/Weekend Rates, 11 p.m.-8 a.m. and all day Saturday and on Sunday.
Volume discount: A percentage is deducted from your overall long distance bill.

Plan details

AT&T (chart details)

Under $10, no monthly fee: all rate periods are for AT&T's One Rate plan.
Under $10, with monthly fee: all rate periods are for AT&T's One Rate Plus plan.
$10-$25: daytime and evening rates are for AT&T's One Rate plan.
$10-$25: nighttime rates are for AT&T's True Reach Savings plan.
$25 plus: daytime rates are for AT&T's One Rate plan.
$25 plus: evening and night/weekend rates are for AT&T's True Reach Savings plan.

AT&T (Domestic Calling Plan Descriptions)

(800) 222-0300

One Rate

Type of plan: Flat rate
Monthly fee: No
Rate periods included: All
Plan description: One Rate customers pay $.15 per minute on all interstate calls.

One Rate Plus

Type of plan: Flat rate
Monthly fee: $4.95
Rate periods included: All
Plan description: One Rate Plus customers pay $.10 per minute on all interstate calls.

True Reach Savings

Type of plan: Volume discount
Monthly fee: No
Rate periods included: All
Plan description: True Reach Savings offers a 10% discount on monthly long distance bills of between $10 and $24.99 and a 25% discount on bills of $25 or more. Covers all domestic calls carried by AT&T, including calling card and cellular calls.

AT&T (International Calling Plan Descriptions)

(800) 222-0300

AT&T One Rate International

Type of plan: Flat rate international
Sign up required: Yes
Monthly fee: $3
Rate periods included: One rate period only.
Plan description: This plan offers a single per-minute flat rate for each country, regardless of when you call. (The rate applies only to direct-dialed calls.)

Excel Telecommunications (chart details)

All daytime rates are for Excel's Premier Plus II plan.
All evening and night/weekend rates are for Excel's Simply One plan and are effective from 7 p.m. to 7 a.m. weekdays and on weekends.

Excel Telecommunications (Domestic Calling Plan Descriptions)

(800) 875-9235

Simply One

Type of Plan: Flat Rate
Monthly fee: $1
Rate periods included: Day (7 a.m.-7 p.m.), weekdays and evening, all other times.
Plan description: Interstate calls are $.25 per minute during the day, and $.09 per minute during the evening.

Excel Plus II

Type of plan: Volume Discount & Calling Circle
Monthly fee: $1
Rate periods included: Day (Monday-Friday 7 a.m.-6 p.m.), Evening (Monday-Friday 6 p.m.-11 p.m.) and Saturdays and Sundays from 5-11 p.m. Night/weekend, all other times.
Plan description: Customers receive a 30% discount on all interstate calls, and a 50% discount on interstate calls to other Excel customers.

Premiere Plus II

Type of plan: Flat Rate & Calling Circle
Monthly fee: $3
Rate periods included: Standard rate periods apply, except that evening rates also apply on Saturdays and Sundays.
Plan description: Interstate calls are billed at per-minute rates of $.17 during the day, $.14 evening and $.12 nights and weekends. Callers also pay less per minute when they call other Excel customers ($.12 day/$.09 evening/$.08 nights and weekends). After the first minute, billing is in 6-second increments.

Excel Telecommunications (International Calling Plan Descriptions)

(800) 875-9235

WorldNet

Type of plan: International discount
Sign up required: Yes
Monthly fee: $3
Rate periods included: Peak and off-peak time periods vary by country.
Plan description: Subscribers receive a 30% or higher discount off the company's basic international rates.

Express Tel (chart details)

All rates are for Express Tel's Flat 15 plan.

Express Tel (Domestic Calling Plan Descriptions)

(800) 748-6350

Flat 15

Type of plan: Flat rate
Monthly fee: No
Rate periods included: All
Plan description: Calls between the 48 contiguous states are billed at $.15 per minute. (Calls to and from Alaska, Hawaii, Puerto Rico and the U.S. Virgin Islands are billed at higher rates.) Calls are billed in 6-second increments.

Frontier Communications (chart details)

All rates are for Frontier's HomeSaver plan.

Frontier Communications (Domestic Calling Plan Descriptions)

(800) 783-2020

Homesaver

Type of plan: Flat rate
Monthly fee: No
Rate periods included: The plan's two rate periods are Day, from 8 a.m.-5 p.m. Monday through Friday, and all other times.
Plan description: Interstate calls are billed at $.25 per minute during the day and $.10 per minute other times. After the first 30 seconds, calls are billed in 6-second increments.

Frontier Communications (International Calling Plan Descriptions)

(800) 783-2020

International Connections

Type of plan: Flat rate international
Sign up required: Yes
Monthly fee: None
Rate periods included: 12-hour rate periods (peak and off-peak) vary by country. Saturday and Sunday are off-peak.
Plan description: Plan offers discounted flat rates for calls made during off-peak rate periods. Rates vary by country. The plan includes some countries that can be called at any time for a single per-minute rate.

GTE (chart details)

Evening and night/weekend rates in the $25 plus category are for GTE's Easy Savings plan.
All other rates are for GTE's One Easy Price plan.

GTE (Domestic Calling Plan Descriptions)

(800) 483-3737

One Easy Price

Type of plan: Flat rate
Monthly fee: No
Rate periods included: All
Plan description: Interstate calls are $.14 per minute.

Easy Savings Plan

Type of plan: Volume discount
Monthly fee: No
Rate periods included: Two rate periods: peak, 7 a.m.-7 p.m. weekdays and off-peak, all other times.
Plan description: Easy Savings Plan customers who spend at least $25 per month receive a discount of 25% off GTE's standard rates for interstate calls. Standard rates are $.27 per minute during peak hours and $.14 at all other times. (New customers receive a 50% discount off monthly bills of at least $25 for the first six months.)

GTE (International Calling Plan Descriptions)

(800) 483-3737

International Calling Plan

Type of plan: Flat rate international
Sign up required: Yes
Monthly fee: $3
Rate periods included: One rate period only for most countries.(A few, including Mexico, have peak and off-peak time periods.)
Plan description: This plan offers a single per-minute flat rate for each country, regardless of when you call.

LCI International (chart details)

All daytime rates are for LCI's Single Rate Option plan.
All evening and night/weekend rates are for LCI's Two Rate Option, effective from 6 p.m. to 6 a.m. weekdays and on weekends.

LCI International (Domestic Calling Plan Descriptions)

(800) 524-4685

Note: Under the following LCI calling plans, after the first 30 seconds all calls are billed in 6-second increments.

All America Plan: Standard

Type of plan: Flat rate
Monthly fee: No
Rate periods included: Standard rate periods apply.
Plan description: All America Plan offers flat rates on interstate calls of $.19 per minute during the day, $.14 in the evenings (including Sundays), and $.12 at night and on weekends (including Friday evenings). On eight holidays, 30 minutes of calls cost $.30.

All America Plan: Two Rate Option

Type of plan: Flat rate
Monthly fee: No
Rate periods included: Two rate periods: peak, 6 a.m.-6 p.m. weekdays and off-peak, all other times.
Plan description: Calls made during peak hours are $.25 per minute; $.10 per minute all other times.

All America Plan: Single Rate Option

Type of plan: Flat rate
Monthly fee: No
Rate periods included: All
Plan description: Calls are $.15 per minute.

LCI International (International Calling Plan Descriptions)

(800) 524-4685

Tell The World International Plan

Type of plan: Flat rate international
Sign up required: Yes
Monthly fee: None, but callers must make more than $50 worth of international calls each year.
Rate periods included: One rate period only.
Plan description: This plan offers a single per-minute flat rate for more than 75 countries, regardless of what time the call is placed. Billing is in 6-second increments after the first 30 seconds.

Matrix (chart details)

All daytime rates are for the Matrix SmartWorld Advantage plan.
All evening and night/weekend rates are for the Matrix SmartWorld plan, effective from 7 p.m. to 7 a.m. weekdays and on weekends.

Matrix (Domestic Calling Plan Descriptions)

(800) 282-0242

SmartWorld

Type of plan: Flat rate
Monthly fee: No
Rate periods included: Two rate periods apply: peak 7 a.m.-7 p.m. on weekdays and off-peak, all other times.
Plan description: SmartWorld charges $.199 per minute during peak hours and $.099 during off-peak hours.

SmartWorld Advantage

Type of plan: Flat rate
Monthly fee: No
Rate periods included: All
Plan description: This plan charges one flat rate of $.139 per minute.

Matrix (International Calling Plan Descriptions)

(800) 282-0242

Both Matrix domestic calling plans, Smart World and SmartWorld Advantage, offer discounted flat rates to other countries. SmartWorld offers discounted peak and off-peak international rates that vary by country. SmartWorld Advantage offers a flat international rate for each country effective 24 hours per day, with the exception of Mexico. SmartWorld Advantage rates to Mexico vary by peak and off-peak hours and also by distance from the U.S.

MCI (chart details)

All rates are for the MCI One plan, which has a $5 per-month minimum.

MCI (Domestic Calling Plan Descriptions)

(800) 444-3333

MCI One

Type of plan: Flat rate
Monthly fee: There is a $5 minimum monthly billing requirement.
Rate periods included: All
Plan description: For subscribers who spend less than $25 per month, interstate calls are $.15 per minute; for bills of higher than $25 per month, the charge is $.12 per minute. (MCI offers other services such as paging, cellular, wireless, international flat rates and Internet access as a package with MCI One.)

MCI (International Calling Plan Descriptions)

(800) 444-3333

MCI One International

Type of plan: Flat rate international
Sign up required: Yes
Monthly fee: $3
Rate periods included: One rate period only.
Plan description: Discounted flat rates vary according to the country called.

Sprint (chart details)

All rates are for the SprintSense plan.

Sprint (Domestic Calling Plan Descriptions)

(800) 746-3767

SprintSense

Type of plan: Flat rate
Monthly fee: No
Rate periods included: peak, 7 a.m.-7 p.m. weekdays and off-peak, 7 p.m.-7 a.m. weekdays and on weekends
Plan description: During peak hours, callers are charged $.25 per minute on interstate calls. During off-peak hours, the rate is $.10 per minute and includes weekend calls to Canada.

Sprint (International Calling Plan Descriptions)

(800) 746-3767

SprintSense International

Type of plan: Flat rate international
Sign up required: Yes
Monthly fee: $3
Rate periods included: 12-hour rate periods (peak and off-peak) vary by country. Saturday and Sunday are off-peak.
Plan description: Discounted flat rates vary according to the country called and the time of call. (Calls to Canada on weekends cost $.10 per minute.) Customers receive an annual rebate equal to 10% of international charges.

TransNational Communications (chart details)

All rates without monthly fees are for TransNational's Simple Savings plan. Evening hours begin at 7 p.m. and daytime rates begin at 7 a.m.
All rates with monthly fees are for TransNational's Dime Anytime plan.

TransNational Communications (Domestic Calling Plan Descriptions)

(800) 653-2669 or (800) 435-6832

Simple Rate

Type of plan: Flat rate
Monthly fee: No
Rate periods included: All
Plan description: Simple Rate customers pay $.147 per minute for all interstate calls.

Simple Savings

Type of plan: Flat rate
Monthly fee: No
Rate periods included: Peak, 7 a.m.-7 p.m. and off-peak, 7 p.m.-7 a.m.
Plan description: Simple Savings customers pay $.289 per minute during peak hours and $.095 during off-peak hours for interstate calls.

Dime Anytime

Type of plan: Flat rate
Monthly fee: $3.95
Rate periods included: All
Plan description: Dime Anytime customers pay $.10 per minute for all interstate calls.

SensePlus

Type of plan: Flat rate
Monthly fee: The $2.99 "low usage" fee is waived for bills of $25 or more.
Rate periods included: Peak, 8 a.m-5 p.m. and off-peak, all other times
Plan description: SensePlus customers pay $.219 per minute during peak hours and $.099 at all other times.

TransNational Communications (International Calling Plan Descriptions)

(800) 653-2669 or (800) 435-6832

World Advantage

Type of plan: Flat rate international
Sign up required: Yes
Monthly fee: $2.95
Rate periods included: Off-peak rate periods only.
Plan description: Plan offers discounted flat rates for calls made during off-peak rate periods. Rates and rate periods vary by country.

US Long Distance (chart details)

All rates are for the FamilyLine plan.

US Long Distance (Domestic Calling Plan Descriptions)

(800) 460-1111

FamilyLine IV

Type of plan: Flat rate
Monthly fee: No
Rate periods included: Peak, Monday-Friday from 8 a.m.-5 p.m. and off-peak, all other times.
Plan description: Interstate rate is $.22 per minute during peak hours and $.12 at other times.

VarTec (chart details)

All rates are for VarTec's CommonLine plan.

Var Tec (Domestic Calling Plan Descriptions)

(800) 583-6767

CommonLine

Type of plan: Flat rate
Monthly fee: No
Rate periods included: All
Plan description: CommonLine customers are charged $.15 per minute on calls to all 50 states. The rate applies 24 hours a day, every day.

Working Assets (chart details)

No discounts are available to Working Assets customers who spend less than $15 per month. Working Assets gives a 5% discount on monthly bills of $15-$24.99; 25% on bills of $25-$49.99; and 30% on bills of more than $50.

Working Assets (Domestic Calling Plan Descriptions)

(800) 788-8588

Volume Discounts

Type of plan: Volume discount
Monthly fee: No
Rate periods included: All
Plan description: The following discounts apply to monthly total billing on interstate calls: 5% discount on calls totaling $15-24.99; 25% discount on calls totaling $25-$49.99; 30% discount on totals of $50 or more. Working Assets donates 1% of monthly charges to 36 nonprofit groups working for peace, human rights, economic justice and the environment that are chosen by customers during an annual vote on prescreened applicants.

Friendship Discount

Type of plan: Calling circle
Monthly fee: No
Rate periods included: All
Plan description: When you call someone in the Working Assets long distance network, you save 25%. If both Volume Discount and Friendship Discount apply, the greater of the two discounts is used.

Working Assets (International Calling Plan Descriptions)