Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (38712)	1/3/2003 4:08:05 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69965

MCI, AT&T Raise Rates Again Thursday January 2, 8:35 pm ET By Barbara Powell, Associated Press Writer Associated Press Nation's Two Largest Long-Distance Providers, MCI Group and AT&T Corp., Raising Rates Again JACKSON, Miss. (AP) -- The nation's two largest long-distance providers, MCI Group and AT&T Corp., are raising rates again even as their turf is being increasingly invaded by local phone companies. ADVERTISEMENT Industry analysts, who expect that No. 3 provider Sprint Corp. will also hike prices, say the big players have little choice but to raise rates and fees to stem revenue declines. "The price wars in the long distance business have weakened the industry," said Jeff Kagan, an Atlanta, Ga.-based telecommunications industry analyst. "This is a way of backtracking and trying to make these companies stronger." MCI, beginning Feb. 1, is raising per-minute rates on its Anytime Calling and Anytime Advantage plans to 9 cents a minute from 7 cents. In December, MCI -- whose parent WorldCom Inc. is struggling to emerge from the nation's biggest corporate bankruptcy -- raised rates to 9 cents from 5 cents on other plans. MCI spokeswoman Claire Hassett said the latest rate increase is in response to changing market conditions, including greater demand for its local and long-distance bundled plan with a base rate beginning at $49.99 a month. Industry analysts have predicted price hikes will continue, particularly for basic services. They also predict more price incentives on bundled services plans as companies try to steer consumers to plans with a higher profit margin. "They're trying to reward the behavior they want to see more of," Kagan said. Separately, AT&T Corp., the nation's No. 1 long-distance company, disclosed Wednesday that as of March 1, the basic rate for international calls will rise by an average of 8 percent. Callers with special international calling plans won't be affected. Earlier this week, AT&T raised the monthly charge on its 7-cents-a-minute plan to $4.95 from $3.95.