# 7 for August 3, 2000

No Notification of Rate Increase on Calling Card

AT&T

From:

Date: Wednesday, August 02, 2000 06:48 PM

Sent To: Email User 8/2/00 6:48:47 PM

_____________________

I have been a loyal ATT phone card customer for over 10 years While on a business trip, I used my phone card for a number of personal calls. When I received the billing for these calls, the calls were billed at a rate that is MUCH higher than the rates I've grown used for the last 10 years.

Quick calculations of cost per minute billing demonstrate this disparity.

Billing Date: June, 2000-July, 2000.

Average cost/min of calls under 5 mins: $2.04

Average cost/min of calls over 5 mins: $1.03

Billing Dates: April-1999-Sept 1999.

Average cost/min of calls under 5 mins: $0.99

Average cost/min of calls over 5 mins: $0.46

These are quick, perhaps less than scientific, calculations, but the dramatic change in billing rate is by no means fabricated. I understand that business is indeed dynamic, and that pricing changes occur as a result. Phone companies are in the position to charge for services already provided (billing after calls are made), where pricing was 'understood' at the time of services (at the time of calling). I would expect every effort from ATT to notify customers of dramatic rate changes in order to prevent surprises like this one. The only 'useful' information provided by customer service was that ATT is not responsable for notification of customers of rate changes, and that they could 'sign me up' for a new service plan.

I want ATT to convince me that this billing practice is right, or reduce the charges on these calls to a rate that is in line with my previous billings. By 'right', I mean proper in the context of ethical and appropriate business practices, not just 'legal'.