There's No Such Thing as a Free Lunch or a Free Conference Call
My friends who work in non-profits know how to stretch a dollar. That's why they were pretty excited when they found out they could obtain "free" conference calling services for their work.
The problem is these calls aren't really free. The carriers who market this service to non-profits are exploiting a loophole in the system that telecommunications companies use to pay one another for voice traffic delivered from one telecom network to another. If regulators allow this practice to continue, it could jeopardize the ability of your mobile carrier to continue to include unlimited long distance as part of your wireless call plan.
Fortunately, this week, state regulators in Iowa took a strong step to stop this abuse. In a decision announced on Sept. 21, the Iowa Utilities Board ruled against the telecom companies who have exploited the loophole. At one point in the order, the Board had some pretty strong words for the firms who've abused the system. The Board said:
Moreover, the Board finds that the acts of some of the Respondents regarding backdating of bills and contract amendments to make the contracts and bills look like they were older was an abuse of a generally-accepted practice. The backdated documents were created to conceal truths from the FCC and this Board, calling into question the credibility of all of the testimony and supporting documents attributed to those Respondents.
The Board also said that some of these companies, "attempted to manufacture evidence to make it appear that they had complied with their tariffs when they had not."
That's why the Board ordered these firms to refund the money billed to AT&T, Qwest and Sprint Nextel.
At Sprint, we think that the Iowa Utility Board has made the appropriate decision – one that is based on the facts, data-driven and rendered from the most complete record of testimony before any regulatory body in the country. We believe the Board’s decision provides a blueprint for other state regulatory utility commissions, courts and the FCC to resolve these longstanding disputes.
