Beginning in July, AT&T will add a 93-cent monthly fee to its phone bills to go towards the universal-service telecommunications discounts for libraries and schools. Previously, AT&T had said it would charge its 70 million customers a 5% monthly fee.
The Associated Press noted June 19 that the flat fee is better for those with monthly long-distance bills exceeding $18.60 but worse for those whose bills are less.
Consumers Union called AT&T's plan a "total rip-off,'' saying that people who make few long-distance calls "are getting short-changed."
MCI said June 18 that the firm will charge a percentage rate, but the amount has not been set. Sprint has not decided how it will collect the fee.
Posted June 22, 1998.