Coy telecom giant woos AT&T's customers

Article Abstract:

MCI is promoting dial-around services to gain the business of customers who haven't switched from AT&T, but want to take advantage of discounts. The dial-round codes are promoted using the name of Telecom USA, an 'anonymous' brand name. Dial-around service providers such as Telco Communications' Long-Distance Wholesale Club and VarTec Telecom's Dime Line have gained 2.5% of the $80 billion long distance market since 1995. MCI's dial-around rates are on average more expensive than both AT&T's and its own discount plans; calls longer than 20 minutes receive special discounts, but comprise only 10% of all long distance traffic. However, for the 20 million AT&T customers who have never enrolled in a discount plan, dial-around services do offer slight savings, although customers should read the fine print for monthly access charges and other hidden costs. MCI's 1-800-COLLECT service, marketed without a brand name, has proved extremely successful. MCI is using Telecom USA to target the low end of the market while offering premium services under its brand name.

Wired Telecommunications Carriers, Long Distance Telephone Svc, Prices and rates, Marketing, Company marketing practices, MCI Communications Corp., MCIC, Company pricing policy

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Sprint launches new plan aimed at small concerns

Article Abstract:

Sprint Corp launches Business Clout, a new long-distance service aimed at small businesses. Business Clout will compete against similar services from At&T and MCI Communications Corp. Sprint guarantees that small businesses that spend between $50 and $2,500 per month on long-distance calls will save up to 20 percent as compared to AT&T's direct-dial rates. However, when compared to similar services offered by AT&T and MCI, Sprint will probably only save its customers between two and five percent. Customers must sign up for one year on the plan.

Telegraph & other communications, Services, Small business, Sprint Corp., Market share, Cost, Marketing Strategy, Long-Distance Telephone Service

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