Phone Service
Consumer Understanding of Pricing Practices and Savings Opportunities in the Long Distance Telephone Industry: Findings from an AARP Survey
Research Report
Christopher Baker, AARP Public Policy Institute
Ann McLarty Jackson, AARP Public Policy Institute
July 2000
Advances in technology and changes in public policy have led to the advent of choice for many telephone users. Long distance callers, in particular, have a number of different options. They can now choose from among many long distance companies and from among a variety of calling plans offered by each company.
This report by Christopher A. Baker and Ann McLarty Jackson of the Public Policy Institute finds that many long distance callers and especially older callers do not take advantage of opportunities to save money on their monthly long distance bills. The report suggests that the primary reason for this is that consumers are misinformed and/or lack essential information about the pricing structure and savings opportunities in the long distance industry.
The report updates a similar 1998 AARP study by Baker, Long Distance Callers' Awareness and Use of Various Telephone-Related Options. In the current survey, conducted in November and December 1999, 2,353 respondents age 18+ were asked if they made long distance calls from their homes; the 1,908 answering affirmatively were selected to complete the remainder of the survey. The report describes their responses in detail and explores policy options for remedying the situation. (33 pages)
Pub ID: D17192