Delaware Consumers Stand To Save Up To $34 Million A Year In Local And Long Distance Telephone Costs

2/28/2002

From: Kate Dean of the Telecommunications Research and Action Center, 202-263-2950

WASHINGTON, Feb. 28 -- Delaware residential telephone consumers could save up to an estimated $34 million in local and long distance costs after one year of increased competition according to a study released today by the Telecommunications Research and Action Center (TRAC), the nation's oldest and largest consumer group devoted exclusively to consumer interest in telecommunications.

Delaware consumers can reasonably expect to save between $302,000 and $1.48 million on long-distance service each month one year after Verizon's entry into the long-distance market. The study forecasts that each customer switching to Verizon for long distance service could save between $4.31 and $21.20 a month, or a combined savings between $51.72 and $254 a year.

TRAC also found that residential local telephone customers could realize up to $1.39 million in savings each month, or over $18.00 a month on their individual local phone bill. TRAC urges consumers to investigate local service options and be aware that new service plans and feature packages could greatly reduce monthly telephone bills.

TRAC has been comparing long distance plans and rates for consumers since 1984. Its TeleTips(tm) Residential Long Distance Comparison Chart provided the basis for the predicted savings. Using TRAC's exclusive sample "calling baskets" of typical monthly phone bills, TRAC estimates actual and potential savings for typical consumers.

"Consumers in Delaware stand to benefit from increased competition in both the local and long distance markets," said Kate Dean of TRAC. "This competition will translate into more consumer savings and greater choice of services in the residential telephone market."

The Delaware report was conducted to ascertain if increased competition in the local and long distance telephone markets would yield financial savings to consumers. "Similar to the findings of previous TRAC reports, the Delaware study demonstrates that expanding the competitive landscape will result in lower telephone prices, and consumers win," said Dean.

Over the past two years, TRAC has monitored the impact of state telecommunications regulatory activity on consumers in eight states. Projected aggregate savings for residential customers range from $870 million to $3.5 billion annually based on greater competition in the telephone market.

A TRAC study completed in April 2001 concluded that one year after Verizon's entry into the New York long distance market customers were projected to save between $197 million and $699 million annually on their local and long distance telephone bills. A September 2001 TRAC report estimated that consumers in Pennsylvania, Illinois, Florida and Georgia collectively could save between $508 million and $1.8 billion a year. Last November, a TRAC study of the California market revealed potential local and long distance consumer savings of $143 million to $881 million annually with increased competition. In December, TRAC announced that greater competition in New Jersey could save residential telephone customers between $22 million and $167 million annually in long distance costs.

A complete copy of the TRAC Delaware study is available at www.trac.org.

------ TRAC, founded in 1984, is a non-profit membership organization based in Washington, DC that promotes the interests of residential telecommunications customers. TRAC staff researches telecommunications issues and publishes rate comparisons to help consumers make informed decisions regarding their long distance and local phone service options.