Internet and International Calls To Be Markedly Cheaper

Telephone costs are in for a substantial reduction in Austria: a reform of Post & Telekom Austria AG's rate structure takes effect November 1, 1997. Not only are time-related rates going down, but new pricing models are being offered - two for private and two for commercial service. Selection of a higher basic rate will reduce running telephone costs - providing Austrian companies the opportunity to choose rates that fit their needs.

Moreover, local rates apply within a 50-kilometer area - as opposed to the previous 25 - and the first long-distance zone has been expanded from 100 to 200 kilometers. These changes will save customers an estimated ATS 3.3 bil. ($275 mil.), with an additional ATS 1.2 bil. ($100 mil.) coming from reduced international rates. Average rates to Germany will fall 34 percent, rates to the U.S. 37 percent and night rates 12 percent.

Rates for modem transmissions are falling even more drastically. Today's 67 groschen-(5.5 cent)-a-minute rate will drop to just 16 groschen (1.33 cents) for the most favorable rates.

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