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OfficeOffice of Consumer CounselHere are deals tO aPPrOaCHOtHerRateWaYstO saVeComparisonResidential Long-DistanceComparisonWItH CaUtIONbundled telephone service – Combinedn.paniesDecember 2007Just as there are ways to save, there are ways to paytoo much for long-distance calls. If your long-distanceservice is provided through well-known companiessuch as AT&T, Verizon or Sprint, you are likely payingtoo much because these three companies have fees andsurcharges that make their long-distance calling plansconfusing and unattractive. The fees and surchargesare shown on our rate comparison chart. They ofteninclude a Bill Statement Fee, Gross Receipts Tax,Property Tax Surcharge, In-State Connection Fee,Carrier Cost Recovery charges and a monthly plan fee.For example, AT&T charges a “Carrier Cost RecoveryFee” that can be as much as 2.39 per month. Thefee is set up to recover costs associated with providingstate-to-state and international long-distance serviceincluding expenses for national regulatory fees andprograms, connection and account servicing chargesand expenses for regulatory compliance. These feesand surcharges add up to higher long-distance bills forconsumers.If your long-distance company is AT&T, Verizon orSprint and you subscribe to their “basic rates,” you arepaying very high rates. These basic rates, often called“Basic Dial-1” or “Direct Dialed” plans, are the highestoffered by the three largest long-distance companiesand are often their default rates. For example, ifAT&T has been your long-distance company for manyyears, or you are a new subscriber but did not requesta discount plan, you may be paying these high basicrates. How high are they? AT&T’s state-to-state basicrates are 42 cents per minute during peak hours (7am7pm).If you are paying basic rates, call or visit the websiteof your long-distance provider and ask to be switchedto a discount or bargain rate plan, or use our ratecomparison to switch to another company.Finally among the deals to approach with caution arethe “dial-around plans” that start with the “10-10”dialing code. The plans allow you to make a longdistance call but at highly inflated rates. Some of theseplans include: Telecom USA’s (owned by Verizon/MCI) 10-10-220plan (onerous call minimum requirements) AT&T’s Lucky Dog 10-10-345 plan Vartec’s FiveLine 10-10-811 plan2007Decemlocal and long-distanceMany companies now provide both local and longdistance phone service. In some cases, lower ratesare available if you choose the same phone companyfor local and long-distance. For instance, for its localservice customers, C-COM offers long-distance rates of4 cents per minute for interstate calls and 7.9 cents perminute for intrastate calls with no monthly minimumor fee. Qwest has a “Qwest Unlimited” plan, whichis available to its local service customers. With aqualifying package, Qwest Unlimited customers pay a 15 monthly fee for unlimited long-distance calls. Localservice customers with Qwest may also choose to pay5 cents per minute for all domestic long-distance callswith a 4.99 monthly fee and no monthly minimum.Verizon/MCI has “The Neighborhood” plan, whichincludes local phone service and unlimited longdistance calls. Similar discounts are available throughAT&T, Comcast, Sprint and other local telephoneservice providers.Unlimited long-distance Calling PlansMany carriers offer unlimited calling plans. Forexample, Qwest has a “Qwest Unlimited” plan, whichis available to its local service customers.QwestUnlimited customers pay a 15 monthly fee forunlimited long-distance calls. Local service customerswith Qwest may also choose to pay 5 cents per minutefor all domestic long-distance calls with a 4.99 monthlyfee and no monthly minimum. Similar discounts areavailable through Comcast, Sprint and other localtelephone service providers. However, one thing tokeep in mind with the “unlimited” plans is that theyoften have a limit. A surcharge, for example, may bebilled for exceeding 5,000 minutes. In addition, theseunlimited plans generally may not be used for dial-upInternet access.Note that these plans potentially only make economicsense for those callers with very low volumes (less thanone hour per month) of long-distance calls. Even then,(continuesnext page)*discountThe BillingonIncrementisthe time customersbilledbefor fractionsof a minuteduring a call. See Helpful Hints for additional information.clubcallingcards aremaythe betteroption.Ratesandinstances,calling plans arebesubjectchange.Contactfor currentrates and additional calling plans. Please note: Some companiesIn allsureto toreadthecompaniesfine printfor hiddenhave additional plans with cheaper rates if you sign up for service through the Internet, pay your monthly bills by credit card, or both.fees.PD eac ge me b e rResC o n s u m e rN e w s(continuesnextIncrementpage) is the time customer* TheonBillingRates and calling plans are subject to changhave additional plans with cheaper rates if yD e c Pe ma bge re2 030 7

Office of Consumer CounselOffice of Consumer CounselResidentialLong-Distance Rate ComparisonResidential Long-Distance Rate ComparisonDecember 2007December 2007AmeriCom(800) 820-6296www.americom.comSimplicity Long DistanceState-to-StateIn-StateNo Monthly Fee or MinimumOne Rate 10 PlanState-to-StateIn-State 2.99 Monthly FeeNo Monthly MinimumAT&T(800) 222-0300www.att.com9.7 18:06Payphone surcharge up to 65 3.9 12.4 18:0610.0 10.0 One Rate Calling Card Plan30.0 1 monthly fee60:60Payphone surcharge up to 56 .79 In-State Connection Fee, 2.99 Bill Statement Fee, 1.99 Carrier Cost RecoveryFee4.9 (pre-paid)8.9 (post-paid)18:06Payphone surcharge up to 55 1.50 Paper Bill Fee59 Regulatory Recovery Fee5.5 PlanState-to-StateIn-StateNo Monthly Fee or Minimum5.5 5.5 18:06With Local ServiceState-to-StateIn-StateNo Monthly Fee or Minimum4.0 7.9 18:06ECG Long Distance(888) 869-1141www.ecg1.com/2.5 Plan (Residential Plan)State-to-StateIn-StateNo Monthly Fee or Minimum2.5 11 18:0612.9 99 Set Up Fee18:06Payphone surcharge up to 53 Everdial(800) 293-7658www.everdial.netEverdial 1State-to-StateIn-StateNo Monthly Fee or Minimum4.9 7.9 06:069.9 06:0650 Connection feePayphone surcharge up to 47 MCI(800) 444-3333www.mci.comMCI Net ValueState-to-StateInter-LATAIntra-LATA 6.99 Monthly FeeNo Monthly Minimum2.7 Residential PlanState-to-StateIn-State 2.00 Monthly Fee or 20 Monthly Minimum60:602.95 Residential PlanState-to-StateIn-State 2.00 Monthly Fee or 20 Monthly Minimum60:60C-COM(800) 301-0788www.ccomati.comOpex Communications(888) 577-7266www.opexld.com12 60:60Payphone surcharge up to 1.004.0 14.0 10.0 14.9 99 Set Up Fee60:602.7 10.08 2.95 10.08 calling planssubjectto change.Contactanda additionalcalling plans.note: Somecompanies* The RatesBillingandIncrementis thearetimecustomersare billedforcompaniesfractions offoracurrentminuteratesduringcall. See HelpfulHints Pleasefor additionalinformation.have additional plans with cheaper rates if you sign up for service through the Internet, pay your monthly bills by credit card, or both.Rates and calling plans are subject to change. Contact companies for current rates and additional calling plans. Please note: Some companieshave additional plans with cheaper rates if you sign up for service through the Internet, pay your monthly bills by credit card, or both.P a g e4 1.99 Paper Bill FeePayphone surcharge up to 35 * The Billing Increment is the time customers are billed for fractions of a minute during a call. See Helpful Hints for additional information.P a g e 1.25 Carrier Cost RecoveryCharge, 2.3% Property TaxSurcharge, 3.99 LocalTelephone Billing Option Fee of99 Direct Invoice from MCIC o n s u m e rN e w sC o n s u m e rN e w s(continues on next page)(continues on next page)DecemberDecember20072007

ComparisonaniesPioneer Telephone(888) 492-6878www.pioneertelephone.netOffice of Consumer CounselOfficeResidential Long-Distance Rate ComparisonResDecember Pioneer2007Rate BusterPowerNet Global(800) 382-9622www.pngsales.comState-to-StateIn-State 15 Monthly Minimum2.7 6.5 60:60Pioneer Talk CentsState-to-StateIn-State 15 Monthly Minimum3.25 7.5 539 PlanState-to-StateIn-StateNo Monthly Fee or Minimum3.9 11.9 6:06545 PlanState-to-StateIn-StateNo Monthly Fee or Minimum4.5 11.9 30:065 PlanState-to-StateIn-State 4.99 Monthly FeeNo Monthly Minimum60:607 AnyTimeState-to-StateIn-State7.0 12.0 6.95 Monthly FeeNo Monthly Minimum60:603U Telecom(800) 97 ASK 3U(800) 972-7538www.3utelecom.com4.8 PlanState-to-StateIn-StateNo Monthly Fee or Minimum4.8 7.9 01:01Total Call International(800) 330-6895www.totalcallusa.comTotal SaverState-to-StateIn-StateNo Monthly Fee 15 Monthly MinimumQwest Long Distance(800) 475-7526www.qwest.comSprint(800) SPRINT1(800) 777-4681(800) 877-4646www.sprint.com5.0 5.0 2.9 7.9 18:06Total BasicState-to-StateIn-StateNo Monthly Fee or Minimum3.9 7.9 18:06Total PrimeState-to-StateIn-StateNo Monthly Fee or Minimum4.4 7.9 18:065.9 60:60Payphone surcharge up to 69 9.9 30:06Payphone surcharge up to 65 Paper bill 1.00Infrastructure fee .9920 60:60Per call surcharge .80Payphone surcharge up to 55 99 Interstate Services FeeSprint Foncard25.0 1.00 Monthly Charge60:60Payphone surcharge up to 55 0.99 Carrier Cost RecoveryCharge, 1.29 In-State AccessCharge4.8 State-to-State7.9 In-State01:01Payphone surcharge up to 65 99 Paper Bill Fee6.9 60:60Payphone surcharge up to 75 99 Paper Bill Fee with BasicPlanRates and calling plans are subject to change. Contact companies for current rates and additional calling plans. Please note: Some companieshave additional plans with cheaper rates if you sign up for service through the Internet, pay your monthly bills by credit card, or both.2007C o n s u m e rDecemPioneer Talk Cents (cont.)06:06 (State-to-State)30:06 (In-State)(continuesonIncrementnext page)* The Billingis the time customers are billed for fractions of a minute during a call. See Helpful Hints for additional information.DPe ac egmeb e r .99 Paper Bill FeeN e w sIncrement is the time custom(continues* Theon Billingnext page)Rates and callingplans 6)are subject to cha(continueson pagehave additional plans with cheaper rates iD e c ePm ab eg r e 2 0 05 7

Office of Consumer CounselResidential Long-Distance Rate ComparisonDecember 2007TouchTone Communications(888) 662-6622www.longdistancesolutions.comLeading EdgeState-to-StateIn-StateNo Monthly Fee or MinimumUnitel(800) 499-5912www.unitelcommunicationsgroup.com/2.5 PlanState-to-State2.5 In-State10 2.99 Low Usage Fee or Monthly Fee orMinimum 20 Monthly Minimum18:062.9 6.5 18:068.0 60:60Payphone surcharge up to 55 Carrier Cost Recovery Fee 1.4714.0 60:06Payphone surcharge up to 65 HELPFUL HINTSHow do I decide which long-distance company’s calling plan is right for me?First, look at your calling pattern: how much you call (number of minutes) and where you call (Colorado or elsewhere). Second, many plans have monthly fees, monthly minimums or other charges. If you pick one of theseplans, be sure to do the math to figure out if the per-minute rate together with these fees is still a better deal thanplans with no fees or minimums. If you are unsure how much you call in a month, use the average for residentialcustomers, which is 120 minutes per month. Third, check to see where you make most of your long-distance calls.If you make most of them from Colorado to other states, find the best state-to-state rates. If you make most ofyour calls within Colorado, check the in-state rates on our chart. Remember, you can choose a different companyfor state-to-state and in-state calls. Finally, the rates quoted in our rate comparison chart are subject to change. Wesuggest you choose the two or three plans that best fit your calling pattern. Call their toll-free numbers or go to theirwebsites to verify their most current rates before you sign up.Will I get cheaper rates if I choose the same company for all my long-distance calls?Yes. It is possible to get lower long-distance rates if you choose the same company for all of your long-distance calls.However, this is not always the case. It really depends on your calling pattern and whether you make more stateto-state or in-state long-distance calls. Some companies will lower their monthly fees if you choose them for all ofyour long-distance calling.Are all companies and calling plans included in the rate comparison chart?No. There are hundreds of companies offering long-distance service. Most have multiple calling plans. We have selected 15 companies and featured several of their calling plans that offer competitive state-to-state and in-state rates.IMPORTANT: Some companies have additional calling plans with cheaper rates if you sign up for their servicethrough the Internet, pay your monthly bills online or by credit card, or both. Also, the major long-distance companies have “basic rates”—avoid them! Basic rates are their highest rates.Where else can I find comparisons of state-to-state or in-state long-distance rates?The website with the most comprehensive list of companies and plans is http://abtolls.com/index.html. AB Tollsrelies on the long-distance companies to update their rates on its website. Sometimes the rates are not current. Besure to call the long-distance company and verify its current rates before you sign up. Other options include theTelecommunications Research and Action Center (TRAC), which offers long-distance information at www.trac.org.For a fee, you can sign up to be a TRAC member and receive the Tele-Tips chart for residential and business long(continues on next page)* The Billing Increment is the time customers are billed for fractions of a minute during a call. See Helpful Hints for additional information.distance rates. You can also purchase individual copies of the Tele-Tips rate comparison charts. Write to TRAC,Rates and calling plans are subject to change. Contact companies for current rates and additional calling plans. Please note: Some companiesP.O.additionalBox 27279,Washington,D.C.or thecallInternet,202-263-2950.haveplans with cheaperrates if you signup for 20005,service throughpay your monthly bills by credit card, or both.P a g e6C o n s u m e rN e w sDecember2007

OfficeOffice of Consumer CounselHelpful Hints ContinuedResidential Long-Distance Rate ComparisonComparisonOther sites to check out include:n.panies2007 ConsumerDecemberSearch at http://www.consumersearch.com/www/house and home/long-distance-service/reviews.html www.callsense.com (10-10- dial around numbers and everything you ever wanted to know about prepaidcalling cards) www.ratekeeper.com (for international calls and 10-10- dial around choices) National Network Services website at: www.saveonphones.com Federal Communications Commission (FCC) at www.fcc.gov/ and also http://www.fcc.gov/cgb/information directory.html (information about surcharges and misleading claims)ResDecemWhat do I need to know about calling card rates?Most companies will give you long-distance calling cards to use when you travel. Calling card rates are usuallymuch higher than the rates you pay for the calling plan you select. When you choose a long-distance company anda calling plan, be sure to carefully check their calling card rates, particularly if you travel frequently and anticipateusing the calling card. Calling cards are still cheaper than paying hotel rates, calling collect or billing to your homenumber (third-party billed). However, calling card rates are often more expensive than using a prepaid card fromCostco or Sam’s Club.Once I subscribe to a particular long-distance company’s plan, can the company change the rates inthe plan?Yes, and often without giving you advance notice. Read your bill carefully each month and calculate the per-minuterate to make sure your calling plan has not been changed. If it has changed without advance notice, and you paidmore than the subscribed rate, call your carrier and ask to have the calls re-rated to your original plan. Additionally,ask what other plans the company has that would be less expensive. Of course, you can always switch to anothercompany.Are there additional fees to consider when deciding which plan to choose?AT&T charges Colorado consumers an “In-State Connection Fee” of .79 per month and a “Carrier Cost Recovery Fee” of 1.99 per month. Sprint charges 0.99 for its “Colorado Cost Recovery” fee, while Verizon’s “CarrierCost Recovery Charge” is 1.25. Additionally, AT&T charges a 2.99 “Bill Statement Fee” in order to have yourlong-distance charges appear on your local service bill. C-COM has a Paper Bill Fee of 1.50. Verizon adds aProperty Tax Surcharge of 2.5% and Sprint adds a Gross Receipts Tax Surcharge of 0.47%. These charges shouldbe factored into the overall cost of long-distance service provided by these companies.Are there benefits to using my wireless phone to make long-distance calls?Some wireless or cell phone plans offer “free” long-distance minutes (e.g., on weekends) or the total minutes in theplan are for local or long-distance calls. If you have a wireless plan and are not using all of the minutes or havefree long-distance minutes, you may be better off using your wireless phone to make long-distance calls. Check thedetails of your wireless plan for more information. Remember that roaming charges might apply if you are placingthe call from outside your plan’s calling area.What is a billing increment?As seen in the rate comparison chart, the billing increment is the time customers are billed for fractions of a minuteduring a call. For example, a billing increment of 18:6 indicates that the customer is charged a minimum of 18seconds and in 6-second increments thereafter. A smaller billing increment is always better.(continuesnext page)* The BillingonIncrementis the time customers are billed for fractions of a minute during a call. See Helpful Hints for additional information.Rates and calling plans are subject to change. Contact companies for curre

If your long-distance company is AT&T, MCI or Sprint and you subscribe to their " basic rates ," you arethe formula to determine the monthly cost of a long-distance plan based on your specific calling habits.paying very high rates. These basic rates (often called "Basic Dial-1" or "Direct Dialed" plans) are the highest offered by .