Pioneer Telephone announces rate hikes:
So does it still measure up?
So does it still measure up?
April 13, 2010 Chicago—Pioneer Telephone has announced that it will increase one fee and add another charge for all customers on the Rate-Buster long-distance plan. The company also has increased the per-minute rates for all new customers living in Verizon's territory.
The announcement came in the weeks since the company lowered its automatic one-time credit from $20 to $10 for Illinois consumers. So if you're a Pioneer customer is it time to panic? NO!
The Rate-Buster plan, with rates less than three cents a minute for most Illinois consumers, is still one of the best offers in the nation. CUB, however, lists other good long-distance deals (along with some not-so-good deals) in the chart below to allow consumers to determine if there’s a plan that better matches their calling habits.
Here's a summary of the Pioneer changes:
*On May 1, the fee for customers who want to be mailed a paper bill is increasing from 99 cents to $1.99. That fee is waived for customers who choose online billing. The fee also is waived in the months a customer makes more than $20 worth of long-distance calls. (That threshold used to be $15.)
*On May 1, a 99-cent “Regulatory Recovery Fee” is being added. This may sound like a tax, but it’s not. It goes to Pioneer’s bottom line to cover “regulatory costs” connected to telephone service, such as city licensing fees. Pioneer says customers won't get charged the fee in months when they don't make any long-distance calls. Many other companies charge this fee.
*New Pioneer customers living in Verizon's service territory will pay new rates. Instead of paying 1.9 cents per minute for in-state long-distance calls (calls to Illinois locations roughly 15 miles from home and beyond), they will pay 5.9 cents per minute. The rate for long-distance calls to other states will still be 2.7 cents per minute. Remember, this increase is for new Pioneer customers living in Verizon's territory. Current Pioneer customers from Verizon's service area, or customers living in AT&T's territory still pay the 1.9-2.7 cents per minute rates.
CUB never likes to see rate hikes, especially when they hit one of the best calling plans in the country. But when you run the numbers, Pioneer is still a good deal, especially for those who get online billing.
How to read the chart below
CUB researched long-distance deals to compare the cost of 200 minutes of calling time (100 minutes of in-state calls, 100 minutes of state-to-state). Note that some of the offers give you online-billing discounts. If the rates for Verizon customers were different than for AT&T customers, we noted that. (Remember, Pioneer's Verizon rates are for new customers only.) The chart does not include taxes, Universal Service Fees, or the $10 Pioneer credit. Please e-mail CUB if you have more information about these plans or know of other good long-distance deals. Before signing up for any offer, verify the rates with the company. Visit CUB’s Phone Savings Center for more money-saving tips.
Plan |
Monthly Fee(s) |
In-state Per Minute Rate |
State-State Per Minute Rate |
Pre-tax Total for 200 Minutes |
| Pioneer |
$1.99 $.99 |
1.9˘ |
2.7˘ |
$7.58, $5.59 (online billing) |
| OPEX Value Plus Verizon Rates |
$1.99 $1.99 |
2.9˘ |
2.95˘ |
$9.83, $5.85 (online billing) |
| AT&T Prepaid Card (Sam's Club) |
$0 | 3.5˘ |
3.5˘ |
$7 |
| ECG Easy (online only) |
$.59 $.99 |
3.1˘ |
2.5˘ |
$7.18 |
| Unitel |
$2.99 $.82 |
1.9˘ |
2.7˘ |
$8.41, $7.41 (online billing) |
| Pioneer Verizon Rates |
$1.99 $.99 |
5.9˘ |
2.7˘ |
$11.58, $9.59 (online billing) |
| Verizon 5 Cents |
$5 | 5˘ |
5˘ |
$15 |
| AT&T One Rate Basic |
$1.99 | 12˘ |
12˘ |
$25.99 |