For Immediate Release September 4, 1997
For more information, contact Eli Mantel, +1 650-493-7228

QVC recently announced that they would be marketing a product from MediaCom called PhoneMiser, which purports to

automatically provide consumers with call-by-call access to the carrier which offers the lowest rate for each call.

To receive these savings, customers need a PC running Windows 95 in addition to PhoneMiser, available for about $100. On top of this, a monthly "database update fee" of $4.95 must be paid after the first three months to be eligible to receive PhoneMiser rates.

According to MediaCom's rate finder web page, all interstate calls within the 48 contiguous states are being billed at 8.9¢ per minute, effective 8/25/97. However, competing rate plans are available that can meet or beat this rate, when the $4.95 monthly fee is taken into account.

The Cagey Consumer long distance rate calculator at cageyconsumer.com/ratecalc.html compares various long distance rate plans, including at least one plan that would be less expensive for anyone making less than 6 hours of interstate calls per month.

Even for customers making more than 6 hours of calls per month, PhoneMiser purchases are subject to several downsides:

• Customers must learn how to install and operate PhoneMiser; there may be conflicts with other software, and the PC must be on in order to use PhoneMiser.
• It could take several years of use to recover the initial cost of PhoneMiser.
• Additional payments could be required to obtain upgrades for a new version of Windows.
• Customers are subject to additional risk because they must provide a credit card number for PhoneMiser call billing.
• PhoneMiser rates could become uncompetitive, rendering the investment in PhoneMiser worthless.
• Incorrect information in the database could result in calls being carried by an unintended long distance carrier, resulting in unexpectedly large phone costs due to "casual caller" surcharges.

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