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Sprint Price Increase
Domestic Dedicated Access Base Price Increase Effective September 2003
Sprint has been increasing the base rates across several products and services periodically over the last few years. Our pricing reflects the value of these products and services and is market driven. Sprint has completed two increases to the Schedule No. 8 dedicated access list rates. The first increase was in October 2002, and the second in April 2003. AT&T has been increasing access rates on their customers for several years. Sprint’s third Schedule No. 8 dedicated access list rate increase will be effective with September 2003 invoices. This increase will impact all dedicated access circuits DS3 and below that are tied to list.
The structure of the increase is to: 1) increase all dedicated access list rates by 7%, and 2) check to assure the pricing is above cost for each rate. If, because of increases in Sprint’s cost structure and the new list rate is below cost, the list rate will be increased by an appropriate amount until it is inline with cost. For 96% - 99% of dedicated access rates, a 7% increase will suffice; the remaining rates will be increased by more than 7% to bring pricing inline with cost.
In accordance with the 15-day advanced notification requirement, customers will receive a postcard notice of the increase in mid-August. The postcard will read as follows,
“Dear Valued Customer: It's our goal to keep you informed and to communicate changes that affect your services. Beginning with September 2003 invoices, Sprint is increasing the Scheduled rates for domestic dedicated access local loop circuits by the following averages: DDS 56K / 96K - 7%, DS0 - 9%, DS1 - 7% and DS3 - 7%. Any existing discounts will still apply. This rate increase will affect customers billing the Scheduled rates, receiving a percentage discount off the Scheduled rates, or whose pricing is otherwise based on the underlying rates in Sprint’s Schedule No. 8.
Rate changes are effective with September invoices and will be posted 15 days prior in Schedule No. 8 at: http://www.sprint.com/ratesandconditions.”
As previously stated, Sprint’s dedicated access price increase should impact all customers whose rates are based on the Schedule No. 8 list rates. We encourage each account team to discuss this event with their customer prior to the effective date of the increase, which is September 2003. Please use the FAQ document as needed when answering customer questions about the price increase.
Sprint’s acquisition pricing will continue to remain competitive, utilizing the Dedicated Access Promotion. The Regional Director Enabled Pricing (REP) program will also remain available for your use.
[PRINTER FRIENDLY VERSION]
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