[comp.dcom.telecom] I'm AT&T and I'm Writing to Help You

clements@bbn.com (09/20/90)

I just got a couple of AT&T's Reach Out offers in the mail, for two of
my home phone lines (individually billed).

This offer is the one that says (paraphrasing) "We aren't sending this
offer to just anyone.  We're sending it to you because we've analyzed
your phone bill and you can save money by buying Reach Out, etc."

One of the lines is used only for local calls (mostly data) and has
not had more than one or two long distance calls in a year.  I'd sure
like to know how Reach Out is gonna save me money with a monthly fee
and no usage.  Unfortunately there's no phone number to call and ask
them to put their analysis in writing.


Bob Clements, K1BC, clements@bbn.com

PCHROMCZ@drew.bitnet (Alec) (09/26/90)

>This offer is the one that says (paraphrasing) "We aren't sending this
>offer to just anyone.  We're sending it to you because we've analyzed
>your phone bill and you can save money by buying Reach Out, etc."
 
If they wanted us to "save money" they would just lower their rates
rather than trying to sell us a "money saving plan."
 

       -*- Alec -*-               
       PCHROMCZ@drunivac.bitnet   
       PCHROMCZ@drunivac.drew.edu
       ...!rutgers!njin!drew!drunivac!PCHROMCZ

john@bovine.ati.com (John Higdon) (09/26/90)

On Sep 25 at 23:41, Alec <PCHROMCZ@drew.bitnet> writes:

> If they wanted us to "save money" they would just lower their rates
> rather than trying to sell us a "money saving plan."

I was wondering how long it would take for someone to realize the
absurdity of "calling plans". An associate of mine refers to this as
"charging for a discount". AT&T, Sprint, MCI, and all the other IXCs
aren't the only ones who play this game, but the LECs do it as well.

A Pac*Bell person explained that, "calling plans are not designed to
save anyone money. They are designed to guarantee a level of revenue
and to create the impression that the customer maximizes his savings
the more he uses the service. He tends to make more calls to take the
greatest benefit of that special plan that he is paying for."

If you think about it, why "WATS" or "ProWATS" or "ROA" or any of that
stuff? Why not just have a sliding scale where the rate gets cheaper
as usage increases? The "special" plans are nothing more than theater
to convince the customer that he is getting something "special".

Also, "plans" make it necessary for the customer to continually
re-evaluate his service to make sure that he has the right "plan".
What the service provider hopes all the while is that the customer
will forget about it and will end up paying for a plan that is
useless. A customer of mine paid AT&T hundreds of dollars over the
course of a couple of years for a LD plan and Sprint was the
customer's carrier!


        John Higdon         |   P. O. Box 7648   |   +1 408 723 1395
    john@bovine.ati.com     | San Jose, CA 95150 |       M o o !

levin@bbn.com (Joel B. Levin) (09/28/90)

 From: John Higdon <john@bovine.ati.com>

>I was wondering how long it would take for someone to realize the
>absurdity of "calling plans". An associate of mine refers to this as
>"charging for a discount". AT&T, Sprint, MCI, and all the other IXCs
>aren't the only ones who play this game, but the LECs do it as well.

I agree with all your comments.  Such evaluation is why I use Sprint
Plus over AT&T's ROA.  The reasons are: most calls are short distance,
NH to MA, so the fixed per-minute rate of ROA represents small
savings; and a lot of the calls are during the day, when ROA diesn't
help.  The savings would have to exceed the monthly fee before I could
break even.  Sprint Plus has no "cover charge," only a "minimum" of
$8/month (my phone bills almost always exceed $50), and even during
the day there is some small discount; so there is no question of
breaking even; I always do better than straight Sprint or AT&T without
ROA.

On the other hand, for calling card calling, I always choose AT&T
because of the straight 10% discount across the board for using my
Universal card.

When each LD company comes out with a new plan, I have to look at it
carefully and decide if maybe it's time to switch.  So far I think I
am doing as well as I can.


JBL