Telecom Consumers Pay More for Local Than Long Distance, Insight Research Reports
December 4, 1998
PARSIPPANY, NJ--(BUSINESS WIRE)Long distance
telephone ads shouting about lower rates
makes it seem like the service is too
expensive, but in reality, consumers are
paying more per month on their local phone
bills than their long distance phone bills, says
a new Consumer Telecom Report by INSIGHT
RESEARCH.
According to INSIGHT's report "Consumers'
Reactions to Telecom Competition," 71
percent of respondents surveyed said their
average monthly local bill was $50 or under.
Only 29% paid under $25 monthly for local
service. For long distance bills, 47% were in
the under $25 category.
Local service competition lingers on the
horizon, and with it will come greater choice
and lower local rates. However, local bills may
still be higher than long distance because
various taxes will be levied on dial tone
service. Long distance bills do not have these
extra charges. INSIGHT believes local telcos
must start paying attention to the potential
harm they face as consumers rebel against
high local phone bills. Consumers may not
view these fixed line charges as valid, instead
assuming they are included in their local toll
charges.
"If it's a surprise that people are paying more
for local service, it's even more amazing to
find out that 10 percent don't even know
what they pay each month," says Robert
Rosenberg, president of INSIGHT. "As local
competition intensifies, it will be interesting to
see if people pay more attention to their bills.
The decline in rates may actually increase
calling frequency and volume," Rosenberg
said.
Further consumer forecasts of
telecommunication services are published in
"Consumers' Reactions to Telecom
Competition," a 102-page market research
study now available from INSIGHT RESEARCH
for $4,795. Primary research consisted of
interviews with regulators, industry players,
academicians, and INSIGHT's proprietary
survey of 1,018 consumers. For this sample,
survey data was weighed to account for
probabilities of random selection and balanced
by age, gender, race, and education to
match U.S. Census demographic variables.
INSIGHT RESEARCH, based in Parsippany, NJ,
is a respected source for telecommunications
market research and competitive analysis.
Link to
insight-corp.com
for an excerpt of this study. For more
information, please contact:
Tara D. Mahon email: tara@insight-corp.com
The Insight Research Corporation phone:
(973) 605-1400 Gatehall I, One Gatehall Drive
fax: (973) 605-1440 Parsippany, NJ 07054
CONTACT: Tara D. Mahon, Director of
Marketing | (973) 605-1400 | email:
tara@insight-corp.com | KEYWORRD: NEW
YORK
[Copyright 1998, Business Wire] |
