Sprint Long Distance Rates Jump 33%

February 9, 2004
Sprint is hitting consumers with another round of long-distance cost hikes, following the pattern set by AT&T. Increases ranging from 10% on international rates to as much as 33% on interstate rates take effect March 1st.

Rich Sayers, founder of Phone-Bill-Alert.com, says he is appalled at how much the Big three (AT&T, MCI and Sprint) charge for state-to-state calls. "Sprint wants up to 44 cents a minute, when you can get the exact same commodity for less than 5 cents a minute," says Sayers.

"Primus and Everdial are reselling Sprint for 4.9 cents per minute with no monthly fee," Sayers notes.

Analysts say that industry trends have pressured major carriers and smaller players to once again increase rates or fees. Based on revenue, Sprint is the third largest US long-distance carrier. Sprint has tried to rely on cost-cutting to improve the bottom line, most recently planning to outsource customer service operations to IBM.

But shifting consumer preferences have siphoned much revenue away from traditional long-distance service. Wireless, Internet phone service, email and instant messaging are all substitutes. So Sprint is asking its customers to pay more.

In percentage terms, the largest rate increase will be a Sprint Sense Day interstate rate going from $0.15 up to $0.20 a minute -- a 33% boost. Sprint Standard Weekends rate for Saturday calls will go from $0.20 to $0.25. The Sprint Sense and Sprint Sense II services peak rate jumps from $0.25 to $0.30 each minute.

Customers on the Sprint Sense Anytime plan will get a monthly fee increase of 20% to $5.95. Sprint users who have not selected a discounted plan will see very high rates get even higher. The Sprint Basic Dial-1 interstate rates will increase by $0.02 a minute, to as much as $0.44 at peak times.

Basic instate rates will increase by $0.04 a minute in 37 states as well. For a list of those states and other details, visit the consumer Web site http://phone-bill-alert.com.

Sayers believes MCI will soon join Sprint and AT&T in the 2004 rate and fee spree.

Small phone companies have been adding or hiking fees too. The latest is ZoneLD, which this month increased its Carrier International/Interstate Network Access (CINA) from $1 to $2 per month.

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