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USDA Backs Truth in Billing for Telephone Customers
Washington D.C., January 4, 1999 --- With a growing and sometimes baffling number of telephone rate plans available in the increasingly competitive telecommunication market, the Rural Utilities Service (RUS) a rural development agency of the USDA recently recommended that the Federal Communication Commission (FCC) help consumers cut through the confusion by requiring telecommunications companies to provide consumers with simple, easy to understand and easy to compare rate information.
"There are tremendous opportunities for consumers to save money on long distance and other telecommunication services, but many rate plans are confusing." RUS Deputy Administrator Chris McLean said today. "The price of telephone service should be easy to understand as the price of a loaf of bread or a carton of milk," McLean continued.
The RUS has been a early advocate of the FCC's "Truth in Billing" initiative. The opening of telecommunications markets to competition brings an opportunity for all Americans to purchase the precise services that meet their individual needs. However, for any marketplace to function, there must be a clear understanding of rate prices.
."Consumers need reliable information to compare services, products and prices offered by telecommunication providers. They should not be surprised by hidden charges," McLean said.
The RUS recommended that all telecommunication providers be required to disclose basic information on price, terms and conditions of service in a uniform, easy to read and understand manner. Simple uniform pricing information will enable consumers to make cost comparisons and informed choices among rate plans and service providers. RUS also recommended that customers be given at least a 30 day notice when rates change.
"Virtually every telecommunications rate can be distilled into monthly usage, and percentage charges, discounts and premium offers. Armed with this information, consumers can make informed choices and enjoy the benefits of a competitive marketplace," McLean said. The RUS, formerly the Rural Electrification Administration provides financing for rural telecommunications, electric and water projects and is an advocate for rural consumers before Federal and state regulatory bodies.
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