All three major long-distance carriers have increased their rates. What can you do to avoid getting fleeced?

By KELBY HARTSON CARR
The Free Lance-Star

Date published: 4/18/2002

Take a close look at a recent long-distance bill. It's probably gone up.

All three of the major carriers--MCI Worldcom, Sprint and AT&T--increased rates in recent weeks.

Competition in the long-distance industry is dying out, according to Pat Bolinger, who has 21 years in the telecom industry, 16 spent at Sprint.

When long distance was deregulated, an onslaught of new providers entered the market. Now, many of them have collapsed, Bolinger said.

MCI's 321 Direct plan, for instance, boosted the state-to-state rate from 8 cents per minute to 12 cents. Sprint Basic Service Dial-1 rates increased 10 percent. AT&T boosted international rates by 10 percent.

"Rates change based on the cost of doing business," MCI spokeswoman Lauren Kallens said. "We do have other plans that are out there if people find [their plan] isn't suitable. We're happy to work with them."

Attempts to obtain comment from Sprint and AT&T were unsuccessful this week.

For details about MCI's rate increase, visit www.mci.com/mci_service_agreement/res_most_recent_info.jsp. For Sprint, visit http://208.25.106.20/ratesandconditions/documents/resratechanges.pdf. For AT&T, go to www.serviceguide.att.com/ACS/ext/ratechange.cfm.

Verizon spokesman Paul Miller said his company hopes to launch long-distance service in Virginia by the end of the year. An application is now before the State Corporation Commission, then must be approved by the federal government.

"In the states [where] we have long distance now, customers have seen a huge savings," he said.

Miller said it will help relieve the increased rates customers now see.

"The big three dominate the market," he said. "They don't face any real competition and Verizon could provide that. It takes a large company to compete against the likes of AT&T."

The big three are bracing for local telephone providers like Verizon to enter the market, according to Bolinger. Verizon has already gotten approval in a handful of states. While this will add competition, it could create other problems that affect pricing.

"When those guys enter the market, they already own the end consumer," Bolinger said. The big three "are trying to build up a war chest for the onslaught coming."

Customers aren't helpless, however. Bolinger suggested shopping around. Call the long-distance carriers and see what they have to offer, or visit their Web sites for special offers.

"Even by talking to your current carrier, you have a better than 50-50 shot you will get a better plan than you're on," he said.

Date published: 4/18/2002