AT&T/Cingular blocks cellular customers from free conference call services

Iria · Mar 19, 2007, 09:06 PM

Source: Ars Technica
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AT&T/Cingular has begun blocking access to a free conference calling service last week, claiming that such services are costing the wireless giant millions in rerouting and "termination fees." AT&T/Cingular users have been reporting that they no longer can dial into some free conference calling services, and Cingular spokesperson Mark Siegel told Ars that the reason the company has decided to start blocking these services is because high volumes of calls to similar services are costly, and the cost for those calls aren't passed on to the customer. "We have to pay terminating access for every minute the person is on the line," Siegel explained. "Typically these companies run them through local exchange companies that charge high access rates, so we end up paying high access charges."

Indeed, many of these free services—such as FreeConferenceCall and FuturePhone—work by routing their calls through a local call exchange in Iowa. The 712 area code used by these services allow the local carriers to charge a number of subsidies to those carrying the incoming calls due to the location of the tiny, rural exchange. These fees are split between the local exchange and the "free" conference call company, which allows them to make a pretty penny. The fees for these calls made into 712 are higher than those charged by other exchanges, and AT&T/Cingular has in fact filed a lawsuit against these Iowa-based telcos for what Cingular claims are violation of a number of laws and FCC decisions.

Mar 19, 2007, 09:06 PM	#1
Iria DriverHeaven Extreme Member Join Date: Apr 2004 Posts: 7,275 Rep Power: 74	AT&T/Cingular blocks cellular customers from free conference call services Source: Ars Technica _______ AT&T/Cingular has begun blocking access to a free conference calling service last week, claiming that such services are costing the wireless giant millions in rerouting and "termination fees." AT&T/Cingular users have been reporting that they no longer can dial into some free conference calling services, and Cingular spokesperson Mark Siegel told Ars that the reason the company has decided to start blocking these services is because high volumes of calls to similar services are costly, and the cost for those calls aren't passed on to the customer. "We have to pay terminating access for every minute the person is on the line," Siegel explained. "Typically these companies run them through local exchange companies that charge high access rates, so we end up paying high access charges." Indeed, many of these free services—such as FreeConferenceCall and FuturePhone—work by routing their calls through a local call exchange in Iowa. The 712 area code used by these services allow the local carriers to charge a number of subsidies to those carrying the incoming calls due to the location of the tiny, rural exchange. These fees are split between the local exchange and the "free" conference call company, which allows them to make a pretty penny. The fees for these calls made into 712 are higher than those charged by other exchanges, and AT&T/Cingular has in fact filed a lawsuit against these Iowa-based telcos for what Cingular claims are violation of a number of laws and FCC decisions.