[comp.dcom.telecom] Lower Prices

dhk@teletech.uucp (Don H Kemp) (12/20/89)

 More Propoganda from the Mother of all Bells :-)
 
 
FOR RELEASE TUESDAY, DEC. 19, 1989

    WASHINGTON -- AT&T today said it plans to lower prices by $300
million annually on interstate and international long- distance
services used primarily by consumers and small business customers.

    The price decrease would take effect Jan. 1, 1990, and apply to
AT&T's basic long-distance service, most international calls and Reach
Out(R) America, the company's optional long-distance plan for
consumers.

    The decrease, AT&T's 10th since 1984, would bring total reductions
in long-distance prices to 40 percent in the six years since the
breakup of the Bell System.  When the Jan. 1 decrease takes effect, a
10-minute AT&T call, at any time of day to anywhere in the continental
United States, will cost $2.50 or less.  Placed during the
night/weekend calling period, such a call will cost $1.32 or less.

    The price cuts, filed late Monday with the Federal Communications
Commission, reflect reduced expenses, primarily from lower fees AT&T
will pay in 1990 to local telephone companies for access to customers'
lines.  Under FCC guidelines, those cost savings lower the "price cap"
on AT&T long-distance services.

    AT&T's proposal includes:

o   A 1.3 percent drop in prices for basic long-distance
    service during the weekday calling period (8 a.m. to 
    5 p.m. Monday through Friday) and a 2 percent drop during 
    the evening calling period (5 p.m. to 11 p.m. Sunday 
    through Friday).

o   Greater discounts for subscribers to the Reach Out 
    America 24-Hour plan.  Customers of the plan will receive 
    a 10 percent discount, up from 5 percent, on weekday 
    calls, and a 25 percent discount, up from 20 percent, on 
    evening calls.  Reach Out America's evening calling 
    period is from 5 p.m. to 10 p.m. Sunday through Friday.
    In addition, AT&T on Friday, Dec. 15, proposed to extend 
    its waiver of the sign-up fee for new Reach Out America 
    subscribers through Jan. 31, 1990.

o   A $104 million price reduction on international calls 
    from the U.S. mainland to 25 of the most frequently 
    called countries and overseas areas including Canada, 
    Mexico, Japan, the United Kingdom, France, Italy, Israel, 
    Brazil, Australia, the Philippines, Taiwan and Korea.  
    The percentage reduction varies by country and time of 
    day.

o   Lower prices for AT&T World Connect(sm) Service to 39 
    countries or territories.  AT&T World Connect Service 
    gives frequent international callers a discount on 
    direct-dialed calls from the U.S. mainland.

o   Reductions in basic long-distance prices from Puerto Rico 
    and the U.S. Virgin Islands to 95 countries and 
    territories.
 
                           # # #



Don H Kemp			"Always listen to experts.  They'll
B B & K Associates, Inc.         tell you what can't be done, and
Rutland, VT			 why.  Then do it."
uunet!uvm-gen!teletech!dhk	  	               Lazarus Long