Sprint Latest To Sue Iowa Telcos Over Sketchy Deals

from the blame-the-regulators,-though dept

Following Qwest’s complaint to the FCC and AT&T’s lawsuit, Sprint Nextel is the latest to get upset by the regulatory loopholes being exploited by Iowa telcos and services like FreeConference.com. Sprint is now suing 14 rural Iowa telcos, claiming that the companies are striking “illegal deals” with the various service providers. It’s easy to understand the big telcos frustration — but again (as when the big telcos blocked calls to these Iowa numbers) the blame is misplaced. It’s not that the rural telcos were doing anything illegal. They were simply exploiting a regulatory loophole put in by regulators who never bothered to consider the consequences. So why not focus on getting those regulators to change the laws so that big telcos don’t have to pay a lot more than a phone call is worth to a bunch of random Iowa telcos?

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Comments on “Sprint Latest To Sue Iowa Telcos Over Sketchy Deals”

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Andrew Pollack (profile) says:

It is just another tactic -- lawsuit as business t

I doubt anyone at the big telcos thinks that the little telcos are doing anything that isn’t within the laws laid out by the state of Iowa. Having failed to gain regulatory relief however, these large telcos can easily sue the smaller ones into oblivion simply by virtue of having massive legal departments on their payroll, and forcing the smaller telcos into the legal defense business rather than the telecoms business.

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