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Telephone services

Talk.com Challenges Long-Distance Giants with Simple Math

Strategic Insights

— 2 min read

As consumers struggle to understand complex rate plans from major long-distance providers, Talk.com is challenging them to do the math. The company's CEO, Gabe Battista, argues that long-distance giants like MCI WorldCom, AT&T, Sprint, and Qwest promise low rates but fail to deliver, with many plans saddled with monthly fees and time constraints that leave callers with larger phone bills. In contrast, Talk.com offers its customers nine cents a minute to call anytime, anywhere in the U.S., with no monthly service fees. The company's "no gimmick" pricing structure has been hailed as a game-changer in the long-distance marketplace.

Key Takeaways:

  • Talk.com challenges long-distance giants like MCI WorldCom, AT&T, Sprint, and Qwest to provide simple, transparent rate plans that don't promise the world but deliver.
  • The company's "no gimmick" pricing structure offers customers nine cents a minute to call anytime, anywhere in the U.S., with no monthly service fees.
  • Several recent long-distance pricing plans from major providers promise consumers 5 cents a minute during specific times of the day but come with monthly fees and time constraints that leave callers with larger phone bills than they anticipate.
  • MCI WorldCom's "5 Cents Everyday" plan, for example, winds up charging customers an average of 12.5 cents a minute for interstate long-distance calls.
  • The company's monthly phone costs are billed automatically via credit card, and billing records are available online in "real-time," allowing consumer and business users to closely monitor telecom charges.
  • Talk.com has more than 1.2 million active online accounts and has established an industry-leading efficiency rating as measured by revenues per employee of $1 million.
  • The company is further differentiated by its high-end Lucent-switched telephone network, user-friendly interface, proprietary online billing system, and convenient service, all provided at among the lowest consumer long-distance rates in the country.

Statistics:

  • Talk.com has more than 1.2 million active online accounts.
  • The company has an industry-leading efficiency rating as measured by revenues per employee of $1 million.
  • MCI WorldCom's "5 Cents Everyday" plan charges customers an average of 12.5 cents a minute for interstate long-distance calls.
  • Qwest's long-distance pricing plan charges customers an average of 11.5 cents a minute.
  • Talk.com's long-distance pricing structure offers customers nine cents a minute to call anytime, anywhere in the U.S.
  • The company's monthly phone costs are billed automatically via credit card.

Sources:

  • Talk.com press release
  • "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
  • Company website: www.Talk.com
  • Company's Annual Report or Form 10-K for the most recently ended fiscal year

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