KSELLING@eagle.wesleyan.edu (Kenneth Selling) (04/20/89)
Some new AT&T long distance rates puzzle me. In the new April 1989, tariff,
certain short-haul rates (around 80 - 100 miles, night rates here) are:
First Minute = 11 cents (e.g., Middletown, Conn, 203 - 344 to
Addtl. Minute = 12 cents NYC 212 , or Springfield, Mass 413)
Note the first minute costs LESS. I thought that the reasoning in the past for
having the initial minute *more* expensive than the rest was to theoretically
charge for making the connection. Operator-assisted calls still tack a hefty
charge on the initial minute, then charge direct-dial rates for addtl. minutes.
Does anyone out there have ideas as to what strategy AT&T is following here?
I can only think of one reason, which is to end up being more competitive with
other interstate carriers in 1 - 3 minute comparison tests used in advertising.
The pattern above seems widespread with AT&T. For some longer distance calls
(e.g., coast-to-coast), AT&T rates are now the same for first and additional
minutes. Ignoring competitive strategy for a moment, perhaps AT&T now
considers the cost of "making the connection" negligible.
Interestingly, it is only on relatively short-haul rates that AT&T is slightly
more expensive than major competitor US Sprint. On some long-haul rates, I
have found that AT&T is now less expensive than Sprint. Not surprisingly,
Sprint's advertising features almost exclusively short-haul rates. In the
opinion of the informed TELECOM reader, why might this be the case?
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Ken Selling | The Scholar on the Schwinn |
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