Maryland Consumers Could Save up to $155M a Year in Local, Long Distance Telephone Costs; TRAC Study Estimates Potential Savings

6/18/2002

From: Kate Dean of TRAC, 202-263-2950, e-mail: katedean@trac.org

WASHINGTON, June 18 -- Maryland residential telephone customers could save up to an estimated $155 million in local and long distance costs after one year of increased competition according to the latest study by the Telecommunications Research & Action Center (TRAC), the nation's oldest and largest consumer group devoted exclusively to consumer interest in telecommunications.

Maryland consumers could save more than $72 million on long distance service one year after Verizon's entry into the long distance market. The study forecasts about 474,000 customers might switch their long distance service to Verizon and that each customer switching to Verizon could save around $13.00 per month, or over $150.00 a year.

TRAC discovered that local phone customers could save money, as well, and estimates about 753,000 customers might switch their local phone service to a local competitor like Cavalier Telephone or Close Call America. Maryland customers could realize an annual saving totaling $82 million a year. The projected savings would amount to over $9.00 per month on individual local phone bills or $109.00 per year. TRAC urges consumers to investigate local service options and be aware that new service plans and feature packages could greatly reduce monthly telephone bills.

"The average Maryland consumer could save more than $21.00 a month on both local and long distance telephone service after increased competition," said Kate Dean of TRAC. "Consumer savings such as these demonstrate the importance of opening the markets to competition, granting consumers greater choice in telephone service providers and plans."

TRAC has been comparing long distance plans and rates for consumers since 1983. Its TeleTips(sm) 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.

The Maryland report was conducted to ascertain if greater competition in the local and long distance telephone markets would yield financial savings to consumers. "As TRAC discovered in other states, the Maryland study demonstrates that consumers will benefit from lower overall telephone prices and greater choice brought on by increasing the number of competitors in the marketplace," said Dean.

Over the past three years, TRAC has monitored the impact of state telecommunications regulatory activity on consumers in nine states. Projected aggregate savings for residential customers range from $850 million to $3 billion annually based on greater competition in the telephone market.

A complete copy of the TRAC Maryland study is available at http://www.trac.org.

------ TRAC, founded in 1983, 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. Editions of TRAC's Tele-Tips Long Distance Residential Comparison Chart and other consumer guides are available for purchase on http://www.trac.org.