AT&T discloses billing ex-users of 'Reach Out.' (discount calling plan)

Article Abstract:

AT&T admits it has been charging a flat monthly fee to users of its Reach Out long-distance discount calling plan even after they have canceled and switched to another carrier. The company is about to launch a campaign to contact those subscribers who no longer use the service; AT&T customer service representatives will work with them to reimburse payments or issue credits. Company officials, while insisting that what they did was lawful and consistent with the Reach Out America provisions approved by the Federal Communications Commission, trace the problem to stiff competition in the long-distance industry and the slow pace of retrieving billing data from local phone companies. AT&T's effort to rectify the situation is met with skepticism by consumer activists and its primary competitor, MCI Communications Corp. Consumerists say AT&T should give automatic refunds and not wait for customers to notify them. An MCI official says AT&T's failure to adjust billing is 'deliberate' since long-distance carriers are informed electronically within 24 hours after a customer switches to another carrier.

Services, Billing/Invoicing, Telecommunications Services Industry

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Long-distance carriers face obstacles: recession, marketing duels will crimp earnings

Article Abstract:

Industry analysts note that the US recession and the competitive environment of the long-distance telephone services industry is likely to hurt earnings for the big three, but users are likely to benefit. Observers note that AT and T has maintained its number one position in the market during 1991 while MCI Communications came in second and US Sprint Communications came in third. MCI and US Sprint are expediting efforts to capture some of the small business and residential market; marketing efforts that are costly and are not likely to yield large profit gains. Price cutting is becoming a means of luring new customers; residential users have seen a 40 percent drop in rates recently and corporate users are likely to see lucrative savings in the near future as well.

Telegraph & other communications, Sprint Corp., MCI Communications Corp., MCIC, Industry Analysis, Recession, Outlook, Marketing Strategy

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LDDS Communications wins big by thinking small; personal service to low-volume clients is niche of long-distance carrier

Article Abstract:

Long-distance telephone company LDDS Communications Inc brings a personal touch to its customer relations, showing that it can compete with much larger carriers such as AT&T. LDDS does not own a transmission network, nor can it afford much advertising, but LDDS has a marketing staff that focuses on customers' needs, customizing services so that efficiency is maximized and costs are minimized. LDDS's income was $9.8 million in 1990, which represents a tenfold increase in the last four years. Revenue, which was $154.4 million in 1990, increased sixteen-fold in the same time period. LDDS's stock was up 25 cents on Thursday, Jul 25, 1991, closing at $23 a share.

MCI Inc., Management Style, Company Profile, LDDSA

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