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Tuesday, February 1, 2000
Consumer groups tout plan to reduce telephone bills
By Kalpana Srinivasan
Associated Press
WASHINGTON - Leading consumer groups said Monday they have devised a way to slash $4 billion a year from home and business telephone bills - even for people who make few long-distance calls.
The proposal, submitted to the Federal Communi cations Commission, would reduce one line-item charge that consumers now see on their monthly bills and eliminate another. The coalition of groups backing the plan, including Consumers Union, the Consumer Federation of America, the National Retail Federation and AARP, say the innovation would take several dollars off the bottom of every home and business phone bill.
The consumer plan would take $1 off the cost of the phone line from the local phone company into the home. That charge, identified on monthly bills as the Subscriber Line Charge, is now capped at $3.50 a month. The consumer proposal also would get rid of another charge, which pays for long-distance companies' use of the local phone network. That item varies by company but averages about $1.50 per month.
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