Other Shoe Drops: Qwest Asks FCC If It Needs To Pay Iowa Telco Arbitrage Loophole Fees
from the about-time dept
In the ongoing saga of services like FreeConference.com using a loophole in Iowa telco regulations to get millions of dollars from large telcos by routing services through Iowa phone numbers, we’ve been saying for quite some time that the PR people from those online services and the Iowa telcos have been been playing their hand a bit too confidently. While it’s true that the big telcos shouldn’t have been able to block calls to the Iowa numbers (and the FCC let them know that), the Iowa telcos should have realized that this whole business model was based on out-of-date telco regulations that allowed them to rip off the big telcos. The fact that they started releasing press releases about how they were protecting the little guy seemed a bit much. Now, Bob writes in to let us know that Qwest has gone to the FCC to see if they can get away without paying the fees, noting that this clearly not what the termination fees were intended for. Given the FCC’s chummy relationship with the big telcos, don’t be surprised if the FCC agrees. Yes, it’s great that these services have popped up, but basing your entire business model on out-of-date regulations seems pretty short-sighted.