Consumer education website

[Pages:34]October 11, 2001

Launching the Consumer Education Initiative

For U.S. International Telephone Calling

Consumer Information Bureau, FCC International Bureau, FCC

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The Average Price of International Calling for Residential Customers is Decreasing

$0.80 $0.70 $0.60 $0.50 Price per $0.40 Minute $0.30 $0.20 $0.10 $0.00

$0.74

1997

$0.65

1998

$0.58

1999

$0.52

2000

International Calling Prices

Source: Industry Data. The averages in this chart and following charts are weighted averages of the large U.S. international carriers for all international routes combined. The weighting is by minutes.

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The Average Price of International Calling

for Residential Customers Using Calling Plans

is Decreasing

$0.70 $0.60 $0.50 Price Per $0.40 Minute $0.30 $0.20 $0.10

$0.62 $0.52

$0.43

$0.37

International Calling Plan Prices

$0.00 1997 1998 1999 2000

Source: Industry Data

3

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The Popularity of International Calling Plans

is Growing

88%

88%

85%

86%

83%

84% Percent of 82%

81%

Total Minutes

80%

78%

76% 1997 1998 1999 2000

Calling Plan Minutes

Source: Industry Data

4

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Basic Rates Greatly Exceed Discount Rates Example: AT&T from U.S. to France

? Basic Service

? Day Rate: ? Night Rate:

? Calling Plan

? Monthly Fee: ? 24 x 7 Rate:

? Dial Around

? Connection Fee: ? 24 x 7 Rate:

$2.29 per minute $1.46 per minute

$3.00 $0.15 per minute

$0.10 per call $0.22 per minute

Source: AT&T website and business office. Calling Plan: One Rate International Value Plan.

Dial Around: "Lucky Dog" (1010-345)

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Basic Rates Greatly Exceed Discount Rates Example: WorldCom from U.S. to France

? Basic Service

? 24 x 7 Rate:

? Calling Plan

? Monthly Fee: ? Weekday Rate: ? Weekend Rate:

? Dial-Around

? 1st ten minutes: ? Additional minute:

$1.99 per minute

$3.00 $0.17 per minute $0.09 per minute

$1.99 $0.19 per minute

Source: WorldCom website and business office. Dial-Around is 1010-220 6

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Basic Rates Greatly Exceed Discount Rates Example: Sprint from U.S. to France

? Basic Service

? Day Rate:

$3.16 per minute

? Night & Weekend Rate:

$1.51 per minute

? Calling Plan

? Monthly Fee:

$5.95 per month

? If France most called country: $0.16 per minute

? Otherwise:

$0.19 per minute

? Dial-Around: None

Source: Sprint website and business office. Calling Plan is Global Family, which includes

discounted rates for domestic long-distance service.

7

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Basic Rates Are Increasing

$1.80 $1.60 $1.40 $1.20 Price Per $1.00 Minute $0.80 $0.60 $0.40 $0.20 $0.00

$1.27

1997

$1.30

1998

$1.38

1999

$1.63

2000

Basic Rates

Source: Industry Data

8

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