NEWS
	Federal Communications Commission 445 12th Street, S.W. Washington, D.C. 20554	News media information 202 / 418-0500 Fax-On-Demand 202 / 418-2830 Internet: http://www.fcc.gov TTY: 202/418-2555
	This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes official action. See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).
	FOR IMMEDIATE RELEASE June 29, 1999   NEWS MEDIA CONTACT: Emily Hoffnar 202/418-0253
	Access Charges Cut Lower Long-Distance Rates Should Follow
	Beginning July 1, 1999, long-distance companies will see overall reductions in access charge payments and contributions to universal service programs of over half a billion dollars nnually. Although the flat per-line charges that long-distance companies pay will increase, per-minute charges paid by long-distance companies will decrease significantly. These price changes are designed to improve the price structure for long-distance calling in the U.S. and are likely to lower prices, further stimulate long-distance calling, and boost the economy in general. "Long-distance companies will have available a net of half a billion dollars which can be - and should be - used to further lower long-distance rates for American consumers. Consumers should be the ultimate beneficiaries of these reductions," said Federal Communications Commission (FCC) Chairman William E. Kennard. "If consumers see higher flat fees without reduced per-minute rates, they may want to shop around for another long-distance company, or even consider not having a presubscribed long-distance company at all." Kennard said. The FCC will release a Consumer Fact Sheet - "Tips on Lowering Your Long-Distance Telephone Bill" - that will explain how dropping their presubscribed long-distance company can reduce long-distance bills for some consumers. Access charges are what a long-distance company pays local phone companies to "access" the local phone companies' networks to originate and complete long-distance calls. Universal service contributions keep phone service affordable in rural and other high-cost areas, and provide discounts for telecommunications services, including internet access, for schools, libraries, and rural health facilities. Local phone companies filed tariffs with the FCC on Wednesday, June 16, 1999, to cut by more than $800 million, the access charges the collect primarily from long-distance carriers for connecting to the local companies' networks. These new rates are scheduled to take effect on July 1, and are subject to FCC review. A list of companies, and the amount of access charge reductions (based on 1998 demand figures), follows: Company Access Charge Reduction Ameritech $ 87,700,000 Bell Atlantic $ 234,600,000 BellSouth $ 150,000,000 Pacific Telesis $ 55,600,000 Southwestern $ 60,800,000 U S West $ 109,100,000 GTE $ 44,600,000 Aliant $ 1,800,000 Frontier $ 5,900,000 SNET $ 16,100,000 Sprint LTCs $ 44,500,000 Citizens $ 9,200,000 Cincinnati Bell $ 4,900,000 Total $ 824,800,000

If you believe your long distance company is charging you too much - in flat fees, monthly minimums, and per-minute charges, there are several options that may lower your bill.

Option 1: Call your long distance telephone company.

• Ask about calling plans.

• Ask if changing your calling plan will lower your bill, based on your calling history.

• Ask for details - are there any monthly flat fees on the plans that your company recommends? What about other charges for federal and state programs and taxes?

Option 2: Switch long distance companies.

• There are many competitors in today's long distance market.

• Consumer-oriented websites and publications are great places to begin your search. See, for example, www.fcc.gov and www.trac.org on the Web, and Consumer Reports Magazine

• Know your calling pattern. Do you make most of your calls on the weekend? Or are most of your calls during weekdays? Gathering some old long distance bills can help.

• Call some competitors to ask about monthly flat fees and per-minute rates. What is their best plan, based on your calling pattern?

• Don't forget the details - are there any monthly flat fees? What about other charges for federal and state programs and taxes? You may be surprised to find out that companies don't all have the same charges for federal programs - shop around!

Option 3: Consider dropping your long distance company.

• You can drop your current long distance company without switching to another company.

• If you make very few long distance calls each month (or no calls at all), you may be able to save money by dropping your long distance company.

• If you do this, you will have no presubscribed long-distance company, so you will not be able to make long distance calls by dialing "1" plus the area code and phone number.

• However, you can still make long distance calls by using dial-around companies.

• Be a savvy shopper if you plan to use dial-around. Consumer-oriented websites and publications can help.

• Before using a dial-around company, ask about whether any flat monthly charges apply. Also, what are the per-minute rates? Are any charges for federal or state programs added? What about taxes?

• How do you drop your long-distance phone company? Call your local phone company and tell them that you no longer wish to have a presubscribed long distance carrier for your phone line. Your local phone company may charge you a small fee to drop your long distance company, the same fee it charges customers who switch long distance companies.

- FCC -

COMMON CARRIER BUREAU CONTACT: Richard Lerner, 202/418-1520