telecom@bu-cs.BU.EDU (TELECOM Moderator) (12/02/88)
The monthly bill for network access was increased from $2.60 per line to $3.20 per line effective December 1, in accordance with the Modified Final Judgment. Subscribers will see this increase on their billings in December. Concurrent with the network access fee increase, AT&T announced a reduction in basic interstate long distance rates also effective December 1. The net result will be a $697 million annual reduction in AT&T revenues, which reflects AT&T's lower costs of connecting to the local phone network. Obviously residential and small business subscribers will now be paying more to maintain the same network. In the nearly five years since the divestiture of the Bell System, AT&T has lowered long distance prices by 38 percent. AT&T said Thursday that customers who make interstate long distance calls totalling $16 or more a month will find the increase in the line charge (or network access fee) is offset by the lower long distance rates. AT&T said the average residential customer spent $8.66 on interstate calls during October, 1988, the last month for which figures are available. Here are the exact reductions, as they apply to various types of interstate long distance calls -- Interstate calls more than 124 miles will drop 3.8 percent. Smaller cuts will be made for interstate calls of shorter distances. About 25 percent of AT&T's interstate long distance traffic in October was on calls to points less than 124 miles distant. This decrease is to basic (or daytime) rates. Evenings/nights will calculate their additional discounts on the new rates. Reach Out America rates will be reduced by 4.9 percent. AT&T WATS rates will be reduced 4 percent effective January 1, 1989. In addition, AT&T will bill calls individually based on time and distance. The current hourly pricing method will be discontinued. AT&T 800 INWATS rates will be reduced 3.6 percent effective January 1. US Sprint Communications said its basic (or daytime) rates will decrease across the board by 3.85 percent effective January 1. MCI Communications Corp. declined to announce specifics today, but said a decrease in rates would phase in during January, 1989, and remain competitive with Sprint and AT&T. All of the carriers said there would be no change in the pricing for surcharged calls, such as calls requiring operator intervention or via third party/credit card billing. Obviously, most Americans will see a change of merely *pennies* in their telephone bill starting this month; but large customers of the telcos should at least monitor their billings for a month or two with an eye toward changes in traffic configurations and calling patterns as suggested by the new rates effective today.
ms6b+@andrew.cmu.edu (Marvin Sirbu) (12/02/88)
A small point: the increase in network access fees and corresponding decline in long distance rates is not a result of the Modification of Final Judgement. It is a tariff policy decision by the FCC. Marvin Sirbu
john@apple.com (John Higdon) (12/06/88)
All references in your posting were to interstate traffic. Do you have any
information concerning intrastate, such as AT&T Full State WATS? Are
intrastate rates going to change, and in which direction?
Suddenly, I realize that intrastate is under the auspices of the PUC and
not the FCC. Still, this is of some concern, to me anyway. Last month my
Sprint bill for interstate calling was $0.62 (call to Boonton, NJ) and my
intrastate bill was around $800. Guess which is of more concern.
--
John Higdon
john@bovine ..sun!{apple|cohesive|pacbell}!zygot!bovine!john