CUB Issues Consumer Alert on Low-Cost Calling Plans, Prices Frozen by Telecom Act Could Cut AT&T Local Phone Bills in Illinois by $200/Year

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Jul 07, 2010, 11:15 ET

CHICAGO, July 7 /PRNewswire-USNewswire/ -- The Citizens Utility Board (CUB) issued a statewide consumer alert Wednesday notifying AT&T customers that three often-overlooked, low-cost calling plans created by CUB have had their prices frozen by the recently passed Illinois Telecommunications Act and could save Land of Lincoln families about $200 a year.

The three Consumer's Choice plans, which AT&T offers as the result of a legal settlement with CUB, were designed by the consumer group to fit the needs of the average Illinois caller. At a monthly cost of $3.05 to $19.70, the plans cover from 30 local calls up to unlimited calling with two calling features, such as Caller ID or Voice Mail.

CUB held news conferences in Champaign, Decatur, Peoria and Rockford on Wednesday to tell Illinois consumers about the low-cost plans and that their prices were under a rate freeze.

The Telecommunications Act, signed by Gov. Pat Quinn in June, locked in the Consumer's Choice prices through at least June 2013, when lawmakers will revisit the telecom law. Under an early version of the bill, phone-company lobbyists set the stage for the elimination of the low-cost plans, but CUB, the Illinois Attorney General's office, and other consumer advocates protected them and helped to get their prices frozen for at least the next three years.

A CUB study released in 2009 estimated that Illinois consumers could be overspending on local, long-distance, and wireless service by more than $1 billion a year, but could make significant cuts to their costs by following a few simple steps. In fact, the study found that AT&T customers could save a total of $485 million on local service by switching to the Consumer's Choice plans or the company's standard pay-per-call rates.

The Consumer's Choice plans were created in a legal settlement between CUB and AT&T that was approved by state regulators in 2006. AT&T customers can determine which plan best suits their calling habits by using the Local Phone Cost-cutter at CUB's Phone Savings Center, www.CitizensUtilityBoard.org. CUB's free Cost-cutter recently served its 40,000th customer, showing consumers how to save a total of $7.8 million a year, or $194 per person.

"The Consumer's Choice plans are a lean alternative to the bloated, all-you-can-eat phone packages often pushed by phone companies," said CUB Outreach Director Sarah Moskowitz. "Consumer's Choice plans give callers the services they need, without the hefty price tag. That's good news in any economy."

There are three Consumer's Choice plans available:

*Consumer's Choice Basic, ranging from $3.05 a month in downtown Chicago to $9.50 per month in the rest of Illinois, provides the safety and reliability of a landline, without the bells and whistles. The plan includes AT&T's Line Charge and 30 local phone calls. Beyond the first 30 calls, local calls are billed at 6 cents per call.

*Consumer's Choice Extra costs $9 to $15 per month and includes unlimited local phone calls and no calling features. This plan is best for a caller who doesn't want extra calling features, but makes roughly 100 local phone calls on up per month.

*Consumer's Choice Plus, costing $16 to $19.70 per month, includes two calling features, such as Caller ID or Voice Mail, and unlimited local phone calls.

Customers on these plans, along with those on AT&T's standard per-call rates, also enjoy service-quality protections that other AT&T customers don't. Consumer's Choice plans cover local calls only, roughly 15 miles or closer to home. For calls beyond 15 miles, CUB often recommends consumers choose a different long-distance carrier, such as Pioneer Telephone.

Pioneer offers AT&T customers long-distance rates of just 2 to 3 cents per minute, plus a $10 "CUB credit" to start. It waives its $1.99 monthly paper-billing fee for customers who choose online billing, and in months when no long-distance calls are made. Even a basic long-distance plan from AT&T charges more: 5 cents per minute and a $5 monthly fee.

CUB's Phone Savings Center, at www.CitizensUtilityBoard.org, has the consumer group's top tips for cutting landline and wireless bills. AT&T customers can get a free phone-bill analysis by calling CUB toll-free at 1-800-669-5556.

CUB is Illinois' leading nonprofit utility watchdog organization. Created by the Illinois Legislature, CUB opened its doors in 1984 to represent the interests of residential and small-business utility customers. Since then, CUB has saved consumers more than $10 billion by helping to block rate hikes and secure refunds. For more information, call CUB's Consumer Hotline at 1-800-669-5556 or visit www.CitizensUtilityBoard.org.

SOURCE Citizens Utility Board