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CUB Wins Major Long-Distance Savings for Illinois Consumers, $20 Credit Makes Good Deal Even Better

CHICAGO, Jan. 30 PRNewswire-USNewswire — Illinois consumers can ring up hundreds of dollars of savings on their telephone bills thanks to an agreement negotiated by the Citizens Utility Board (CUB) that won a $20 credit for customers who switch to a low-cost long-distance plan offered by Pioneer Telephone.

CUB unveiled the new credit Wednesday at joint press conferences across the state with Lt. Gov. Pat Quinn. Quinn's office is co-sponsoring a series of free phone bill clinics, at which CUB analyzes consumers phone bills and recommends ways to save.

"If you're paying more than $25 a month for phone service you're probably paying too much," CUB Executive Director David Kolata said Monday. "But thanks to the Consumer's Choice plans AT&T is required to offer under a legal settlement with CUB and the $20 credit we've won from a Pioneer plan that already was one of the best in the market, consumers can slash hundreds of dollars a year off their phone bills."

CUB's ongoing analysis of the long-distance market has consistently found that Pioneer Telephone's "Rate Buster" plan is the best deal for most consumers. It's 2-3 cents per minute with little or no monthly fee in most parts of Illinois (no more than a nickel a minute in other areas). When combined with savings on local bills offered under a legal settlement between CUB and AT&T, average Illinois consumers can now slash their phone costs by almost $25 a month, or $300 a year.

To obtain the $20 bill credit from Pioneer, consumers must sign up for long-distance service with the company by calling 1-877-492-6878 and requesting the CUB discount. AT&T will charge a fee of about $9 for switching local toll/long-distance carriers or for adding the service to your current account if you don't already have it.

CUB offers three key recommendations:

1. Switch to one of AT&T's Consumer's Choice plans for local service. AT&T is required to offer the plans, which were designed by CUB under a legal settlement with the consumer group. For help choosing the right plan, call CUB's Phone Savings Hotline, at 1-866-688-4282, or visit http://www.CitizensUtilityBoard.org and use the Local Phone Cost-cutter.

2. For long-distance and local toll service, opt for Pioneer's Rate Buster plan, with a 2-3 cents per minute rate. The plan covers both local toll and long-distance calls—basically a call to anyone more than 15 miles from your home.

3. Drop Line-Backer, or other optional inside-wire protection plans. The AT&T plan, priced at $6.99 a month or almost $84 a year, is a big revenue producer for the company, but most consumers rarely need the service, since inside wire problems ocurr, on average, only once every 20 to 30 years.

For over a year now, CUB has been alerting customers of Pioneer's "Rate Buster" plan after an extensive analysis of the long-distance market found that it consistently beat other offers. The company also offers reasonable international rates.

When the Portland, Maine-based Pioneer discovered that CUB's analysis was leading to many new Illinois customers, the company offered the consumer group compensation. CUB declined the offer and proposed that the money be given to customers instead.

Under an agreement with the consumer group, Pioneer will pay an automatic $20 bill credit to any Illinois customer who requests the CUB discount. The company also agreed not to raise rates as long as the price of its wholesale service, provided by AT&T, doesn't go up.

"For many consumers, a $20 credit on their bill means several months, if not a year, of free long-distance service," Kolata said. "You can't beat that, especially since Pioneer already was offering one of, if not the best, plan in the long-distance market."

CUB is a nonprofit utility watchdog group created by the Illinois legislature to work for lower electric, gas and telephone bills for consumers. Since 1984, CUB has saved consumers more than $10 billion by blocking rate hikes and securing refunds. For more information about CUB, call 1-800-669-5556 or visit http://www.CitizensUtilityBoard.org.

CONTACT:

Dave Kolata

312-263-4282 (o)

312-560-0929 (c)

SOURCE Citizens Utility Board