Apparently freeconference.com is now sending notes to its customers (one of whom forwarded an example to me) because Sprint, Cingular, Qwest and some others finally got around to blocking calls to their numbers. They pitch it as the big companies trying to block their free service so the giants can sell expensive services, and are trying to whip up support by suggesting this is akin to a network neutrality violation.
In fact, it’s an example of the big guys actually doing something right, and fixing a loophole caused by bizarre legacy telco regulation. The number you called for freeconference, and many other services, were served by telcos in rural areas such as Iowa. The phone regulations are set up so that when you make a long distance call on the PSTN, the long distance company pays the remote local phone company to complete the call. Usually that fee is about half a cent per minute in cities, and even free for cell phones. (Frankly, it should always be zero, and this should be paid for as part of my local phone fee, but that’s another story.) In Iowa, however, in order to, in theory, help pay the costs of being a phone company that has to send the call out to a lonely Iowa farmhouse, the rural telcos get to charge as much as 6 cents or more per minute to complete the call. read more »
