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What the FCC Forgot to Tell Consumers

July 27, 2001
A consumer Web site is alerting consumer groups and the media about important details the Federal Communications Commission (FCC) has left out of recent releases to the media and the public. "Detariffing of long distance services is a complex issue, but it is not hard to get all of the key points across to the rate paying public," said Richard Sayers, editor of 10-10PhoneRates.com.

Sayers points out a statement in a July 25, 2001 FCC news release: "Although long distance companies will no longer file tariffs with the FCC, the FCC will maintain its jurisdiction over these companies." That statement is not correct. The FCC release did not point out that popular dial-around "10-10" plans such as 10-10-220 and 10-10-345 are not required to detariff. "Consumers spend millions and millions of dollars per year on 10-10 plans and need to know most phone companies will not apply the terms of customer agreements to those plans," says Sayers.

Another concern is FCC communications that do not clearly use the term "interstate" or do not mention it where it is needed for clarity. The detariffing required as of July 31 only applies to interstate (state-to-state) calls. International calls are not required to be detariffed until January 2002. Instate calls (those made from one point in a state to another point in the same state) are not affected at all. Instate calls are not under FCC jurisdiction and rules vary by state.

"While some companies have chosen to detariff international rates as of July 31st and provide details of those plans to customers, others such as MCI have not," adds Sayers. "Consumers need to know what the rules are and when they do or do not apply."

Sayers agrees for the most part with K. Dane Snowden, Chief of the FCC’s Consumer Information Bureau, who said, "Long distance prices have never been lower, choices have never been greater. This marketplace is serving consumers very well." Overall rates are low and consumers have many choices, but carriers are finding new ways to hit customers with fees. Several have added a $1.50 fee for billing your long distance on your local phone bill. VarTec added a fixed Universal Service Fund fee in addition to charging a percentage. Others charge per-call connection fees or bill for calls that ring but are not answered.

These fees are spelled out for all of the plans compared on 10-10PhoneRates.com. The site often provides notice of rate increases the day they take effect, and occasionally in advance, whenever phone companies announce plans early.

Submitted by 10-10phonerates.com

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