Consumers Applaud Kennard's Call for Proof of Long Distance Savings; Keep America Connected's Study Showed that Savings Was Not Passed Through
PR Newswire - February 27, 1998 12:23
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WASHINGTON, Feb. 27 /PRNewswire/ -- Keep America Connected today applauded
Federal Communications Commission Chairman William E. Kennard's criticism of
the three largest long distance carriers for failing to pass on the $2 billion
savings from access rate reductions. Kennard yesterday announced that he sent
letters to AT&T, MCI and Sprint citing a "growing body of evidence that the
nation's largest long distance companies are raising rates when their costs of
providing service are decreasing."
"This just proves what we've been saying all along," commented Angela
Ledford, Executive Director of Keep America Connected. "The long distance
companies are pocketing billions of dollars that they promised they would pass
on to their customers. Consumers should be outraged."
Keep America Connect first called for the FCC to investigate the illusive
savings in response to findings from their report "In Search of Savings,"
issued September 1997. The report showed that the long distance companies
employed a wide variety of strategies to hold on to the access charge
reductions in addition to failing to pass along the savings to all their
customers. Keep America Connected also found that the long distance companies
were lengthening daytime calling periods (when the highest rates are charged),
increasing calling card rates and charges, and raising the price of directory
assistance. A letter to then Chairman Reed Hundt asked the FCC to review the
access charge issue.
"Even more alarming than the failure to pass through the access rate
reduction is the fact the long distance companies have the nerve to start
imposing new fees on their customers for new per-line fees this year,"
continued Ledford. "MCI even charges their customers double the FCC-ordered
rate of 53 cents. We've alerted consumers to the dubious methods of extortion
practiced by the long distance companies for months. I'm glad that they've
finally been caught with their hand in the cookie jar."
Keep America Connected is a coalition of organizations representing older
Americans, people with disabilities, rural and inner city residents, labor and
local phone companies. For a copy of the report, letters and/or past press
releases, call 202-408-4080.
SOURCE Keep America Connected
/CONTACT: Keep America Connected, 202-408-4080/ |
