CUB says you pay $575 a year too much for phone services

Most people in Illinois are overpaying as much as $575 a year for landline and wireless phone services, according to study released Tuesday by the Citizens Utility Board.

The Chicago-based consumer watchdog group issued its report, "The Right Call: A $1.5 Billion Economic Stimulus Plan for Illinois," with data it collected over two years from about 32,000 local, long-distance, and cell-phone bills. The report details potential annual savings of $187 on local, $80 on long-distance and about $308 on mobile phone bills.

While the savings per service didn't target any particular age group, CUB found during their phone clinics with consumers that more older people were using wireless phones mostly for emergency and often got "bogged down" in bloated plans, said CUB spokesman Jim Chilsen.

"We're going to use this study to help educate consumers and use it as a tool to change policy," said Chilsen.

The savings for households around Illinois is enough to give the state's economy a $1.5 billion boost, or a so-called economic stimulus equivalent to a 14 percent tax cut, CUB said.

This report shows that Illinois consumers have a lot of choices for their telecommunications services, said Meghan Roskopf, a spokeswoman for AT&T, which provides both landline and wireless packages.

"Competition for wired and wireless services is robust and we're confident our packages provide value to consumers," said Roskopf. "We recommend that when shopping for the best deal, consumers should evaluate the overall price and understand what's included for that price. We have options to meet the needs of different customers."

CUB has suggestions for consumers interested in learning more:

•Drop unnecessary services, such as Linebacker, a plan covering wire repairs needed every 20-30 years, on average.

•Explore alternatives, such as Maine-based Pioneer Telephone's "Rate Buster" plan. It charges 1.9 cents a minute to 2.7 cents a minute. The 99-cent monthly fee is waived for consumers who get their bills e-mailed to them. CUB has negotiated a one-time $20 credit to any Illinois consumers who sign up for it.

•Look at CUB's free online service that analyzes wireless bills from the industry's top five providers.