BILL PUSHERS

Shin-deep in competition, RBOCs have begun to realize the importance of the billing experience in customer retention. Verizon began simplifying its bills state-by-state this spring, and Qwest introduced simpler bills last year. But the industry still has a lot of work to do before its customers' billing experience is as smooth and dependable as a dial tone. For months, SBC has been advertising a flat-rate bundle of $48.95 for unlimited local and nationwide long-distance. But only in the wee, Honey-I-Shrunk-the-Font fine print do the ads note that this price doesn't include federal, state and local taxes, which could bump up the monthly bill another $5 or so. A sales rep may explain that, but even he or she may leave out the fact that the flat rate also doesn't include a raft of surcharges, such as number portability, universal service fees and the time-honored but enigmatic “federal end-user common line charge,” all of which could add another $8 or $9 to the monthly total. Customers foolish enough to dial directory assistance at $2.50 a pop (also extra), in addition to the aforementioned extra charges, might be shocked to see their monthly bill quite a long drive from the $48.95 they signed on for. Despite the fine print disclaimers, an SBC customer service rep told Telephony that the company has fielded “a lot” of complaints from customers who felt the offer was misleading. The company may learn, painfully, that even the most enticing offer in the market can repel customers if they feel as though they were tricked.