payne@tcgould.tn.cornell.edu (Andrew Payne) (03/21/90)
I hope this subject hasn't been beaten to death before, but
why are in-state calls SO expensive?
I got my last phone bill and it had a charge for a 15 minute
in-state call (AT&T, daytime rates) for over $7! That's more than 40
cents a minute which is far more than the highest mileage rate
(4251-5750 miles) listed on my AT&T rate schedule. And my state (West
Virginia), isn't even a big state.
I called AT&T and the person I spoke to had no idea why
in-state calls are so expensive. A Sprint salesperson said it was due
to "state taxes". MCI was even less helpful. A person from AT&T
called to see if everything was ok with my service and I told him
about the in-state rates. He didn't even know in-state calls were
charged at a different rate!
I guess my questions are:
- Why are in-state calls so expensive?
- Do the in-state rates vary from state to state?
I'd guess they would.
- Why does the issue seem to get swept under the carpet?
None of the people at the various long-distance companies
seemed very educated about the matter. I asked AT&T for their
in-state rates and they sent me their standard rate schedule. It has
a footnote: "Add 3% Federal excise tax and applicable state surcharges
to all prices in this brochure." Their Reach Out America plan
includes "a full hour of weekend/night calls to __anywhere__ [emphasis
mine, of course] in the country..." After calling, I found that AT&T
seems to define anywhere as anywhere but West Virginia.
- How long will this rate structure continue to be reasonable?
I realize states have the power to govern and regulate all
trade within their borders, but with networks criss-crossing the
country, it is reasonable to expect an in-state call to be carried on
out-of-state networks. I know for a fact that my in-state call in
question is carried almost entirely out of the state of West Virginia.
- Is there any way to get around this?
My parents live less than 5 miles from another state
(Maryland). I live less than 15 miles from other states (Ohio &
Pennsylvania). Both of us have out-of-state exchanges in our local
calling areas. Its almost worth it for me to get a phone in Maryland
with call forwarding, put some sort of box on it so I can set the call
forward remotely, and use that setup to make in-state calls.
I am puzzled. Comments appreciated.
= = = = = = = = = = = = = = = = = = = = = = = = = = =
Andrew C. Payne, N8KEI UUCP: ...!cornell!batcomputer!payne
INTERNET: payne@tcgould.tn.cornell.edu
[Moderator's Note: Intra-state rates are generally higher because Bell
is more successful at getting their way with local regulators in most
cases. Over the years, chances are likely your local state utility
commissioners have gotten friendly -- real friendly -- with the folks
on the board of the local telco. Of the fifty plus Reach Out Plans
offered by AT&T (Reach Out America; Reach Out <state name>; etc., a
few, such as Reach Out Illinois offer an 'interstate transparency'
deal. For instance, I get intrastate Illinois calls in my plan; but
technically I don't subscribe to Reach Out America; I subscribe to
Reach Out Illinois, and I pay 85 cents per month for the 'interstate
option'. Not all state regulators have okayed this neat little
addition. And let me tell you, Reach Out is no big deal if you live
in the central part of the United States: my most expensive nighttime
calls would only be about 13-14 cents per minute anyway! Its a good
deal for folks on either coast who tend to call the opposite coast, or
to Alaska/Hawaii a lot, etc. PT]