E Channel - CheapRates.com Calculates 'Hidden' Telecom Fees on Web

Posted: 09/2001

E Channel

CheapRates.com Calculates 'Hidden' Telecom Fees on Web
By Josh Long

K Communications Inc., a telecommunications consulting firm targeting small businesses and residential consumers, has introduced CheapRates.com, a website where fees, taxes and surcharges are calculated to compare long-distance phone bills--not simply rates.

"This new technology allows customers to find the very best long-distance service based on the total bill, or the overall cost of the service," said Terry Shorter, vice president of operations at CheapRates.com, in a news release.

Shorter said the website displays the "previously hidden fees, surcharges and taxes that may cause a customer to pay up to 100 percent more than they originally expected to pay based solely on rates." Those hidden fees include surcharges if you make international calls and penalties related to minimum usage requirements, among other things.

PK's software, BottomLine, asks the shopper for basic calling pattern information before determining the overall bill for each of 11 long-distance carriers, including AT&T Corp., Qwest Communications International Inc. and 10 resellers.

BottomLine eliminates plans the user does not qualify for in a geographic area, and displays the remaining plans with the suggested "best bill" appearing at the top of the list. The customer can see how the bill is calculated and the effect of the hidden fees on the price.

In an interview in July, Patrick Oborn, a board member in charge of Internet development at PK Communications, said the company has been using the software for approximately three months to consult with about 1,000 clients.

Before PK Communications developed the calculator technology, the consulting firm told clients what their long distance fees included--but not in terms of dollars and cents.

"Unless you see it on a bill, it means nothing to you," Oborn said.

Oborn said the company has made agreements with most of the long-distance carriers to share money when a customer signs up for a plan. But the technology is mostly geared to help the consulting firm recommend plans offline--"The online market is saturated with people trying to sell long distance," he said.

The consulting firm has constantly been testing the website to find errors in pricing. As late as mid-July, the company found a glitch, but Oborn believes all the rates are accurate.

"There is an outside chance something might be wrong but we don't think there is," he said. However, when consulting clients, PK visits a provider's website to confirm rates after using the calculator function.

On CheapRates.com, the company also makes recommendations on travel, Internet services and digital satellite TV. Users also can evaluate and purchase wireless services.