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does not have jurisdiction over the vast majority of disputed calls—those that were directed to Iowa from callers in other states—so the reach of its decision is limited. Moreover, the Board has indicated that it is reconsidering its decision and several appeals have been filed challenging the lawfulness of the Board's order, thus it is not yet a final decision.
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principle of non-discrimination, that "a provider 'cannot block fair access' to another provider." AT&T agrees with Google that the FCC should act to forbid traffic pumping schemes in the first place, calling them "patently unlawful", but asks that Google be required to accept the same common carrier requirements even if they are not shut down.
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Based upon an independent study of 50% of long-distance calls originating on wireless networks in the U.S., calls terminating to carriers meeting a traffic pumping profile were estimated to cost $ 95 million annually, representing 11% of all long-distance costs in the study. Extending to all wireless
108:
directly at an initially-high rural rate of five to thirteen cents per minute. After two years the carrier either rejoins the NECA pool, provides evidence to support continuing to charge the high rural rate or reduces rates to a level that can be supported. A sudden increase in inbound calling volume
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because it "acquired a direct interest in promoting the delivery of calls to specific telephone numbers." AT&T also argued that the access revenue-sharing arrangement with the chat-line provider was unreasonably discriminatory in violation of
Section 202(a) of the Act, because Jefferson did not
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in Iowa. Except for one call blocking finding against Sprint, the decision was unfavorable for the rural carriers, which may have to return the fees they received for calls directed to traffic-pumped services by Iowa residents. However damages have not yet been assessed and the Iowa
Utilities Board
428:
In 2002, the FCC issued two more orders, denying similar complaints by AT&T directed at LECs that shared access revenues with chat-line providers. In AT&T v. Frontier
Communications, the Commission rejected AT&T's allegations that "revenue-sharing arrangements" constituted unreasonable
280:
to connect users with their calling destinations. In order to avoid paying high connection fees to traffic-pumping carriers, Google Voice blocked calls to some of these carriers. As of 2014, Google Voice no longer blocks calls to these carriers, but charges its users a fee to reach them (while not
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customers now have unlimited long-distance plans, and thus the entire inflated cost of using these services is borne by their long-distance carrier. Providers of traffic-pumped conference calling services assert that these long-distance carriers still profit when their customers use traffic-pumped
429:
discrimination in violation of
Section 202(a) or violations of the ILECs' common carrier duties under Section 201(b). In AT&T v. Beehive Telephone, the FCC again denied AT&T's complaint against a LEC that engaged in a commercial relationship with a chat-line provider for the same reasons.
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The FCC has more recently issued an order in a case involving an Iowa carrier relating to interstate calls (calls made from any state other than Iowa to an Iowa telephone number). In the order, the FCC determined that the Iowa carrier was not entitled to collect the entire amounts it billed to a
172:, operated under multiple names (FreeDigits, TalkDigits, OfficeDigits, FaxDigits, ClickDigits, and SIPnumber) to offer a "free US phone number" to receive "free inbound calls" and voicemail or "free fax service" with "unlimited incoming faxes" which would then be delivered outside the region via
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AT&T has written to the FCC, saying that Google's blocking of calls to traffic pumping numbers gives it a substantial cost advantage over traditional carriers. AT&T further argued that the issue of network neutrality is highly relevant, since Google is violating its own statement of the
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In 2007, AT&T estimated that it would spend an additional $ 250 million to connect such calls, and has warned that it may have to raise its customers' calling plan prices unless regulators address the issue of traffic pumping. However, providers of traffic-pumped conference calls claim that
99:
providers, which expect a high volume of incoming calls. Notably these service providers do not need to establish a physical, local presence for routing these calls. As a result of this arrangement, the rural carriers can receive millions of dollars of fees which they share with the service
103:
Payment for inbound long-distance calls to small rural telephone companies is normally handled through a shared pool, the
National Exchange Carrier Association ("NECA"). Individual telcos are free to opt out of this process. For the first two years, they may bill
90:
Increasing the incoming call volume to those rural areas, and thereby their earnings from fees, rural carriers partner with certain telephone service providers to route their calls through the rural carrier. These services typically include
308:, in which businesses exploit laws and regulations to stifle competition and slow innovation. Finally, Google urged the FCC to revise "outdated carrier compensation rules" to end the practice of traffic pumping.
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AT&T and other long-distance carriers have in some cases attempted to avoid these costs by blocking their customers from calling the phone numbers of traffic-pumping services. However the FCC has forbidden
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has joined in AT&T's complaint, urging the FCC to investigate Google Voice's practice of blocking calls to high-fee rural local exchange carriers. Some of the legislators have received significant
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legislature to propose legislation forbidding rural telephone carriers from entering into revenue-sharing agreements with traffic-pumped services. However the legislation was defeated.
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AT&T has refused to provide evidence of these costs, and that it is a ploy by AT&T to leverage its market power to put competing conference calling providers out of business.
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were no more as AT&T disputed millions of dollars in calls. By 2008, the offer of a free Iowa number for inbound
Internet voice and fax calls had also been withdrawn. As of 2014,
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End-users of traffic-pumped phone services often do not pay directly for the high fees collected by rural local carriers and service providers. Many wireless and
35:
inflate the volume of incoming calls to their networks, and profit from the greatly increased intercarrier compensation fees to which they are entitled by the
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permits rural carriers to charge substantially higher access fees than carriers in urban areas, based on the rationale that they must pay for substantial
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from AT&T, and represent districts where rural carriers profit from traffic pumping. Sam Gustin of DailyFinance suggests that there may be issues of
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long-distance carrier, but that it was nevertheless entitled to some compensation. The exact amount of payment has not yet been fixed by the FCC.
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from using this kind of selective blocking, and so the long-distance carriers are essentially obligated to complete these calls.
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at about the same time as a telephone company leaves the NECA pool therefore can represent profitable two years for that firm.
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AT&T has appealed to the FCC to intervene, charging that Google Voice ought to be required to connect these calls just as
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811:"VOIP Phone Service Providers, Broadband Business Phone, Free Internet Phone Service VOIP, Voice Over Internet Phone Service"
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1012:"Declaratory Ruling and Order in the matter of: "Establishing Just and Reasonable Rates for Local Exchange Carriers""
698:"In the Matter of Qwest Communications Corporation, Complainant, v. Farmers and Merchants Mutual Telephone Company"
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288:(POTS) carriers are required to do so. Google has responded that its service, and those of VoIP providers such as
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share revenues with all its customers. The FCC rejected both these arguments and denied AT&T's complaint.
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In 1996, AT&T filed a
Section 208 complaint with the FCC against Jefferson Telephone Company, a rural
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telecommunications service offers a service similar to long-distance telephone calling at no cost, using
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AT&T Corp. v. Frontier Commcn's of Mt. Pulaski, Inc., 17 FCC Rcd. Rcd. 4041-42, ¶¶ 1, 2 (2002).
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Google's redacted response to the FCC about AT&T's complaint, with some technical details
1074:"AT&T Goes After Google Voice, Net Neutrality And Double Standards (Full Letter To FCC)"
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subscribers anywhere on the
Internet, but chose to discontinue services after May 1, 2016.
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is one example of a conference bridge using +1-218 Minnesota and +1-712 Iowa extensively.
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and may be located in a rural numbering plan area in a sparsely-populated state, such as
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Please help update this article to reflect recent events or newly available information.
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Please help update this article to reflect recent events or newly available information.
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provider. AT&T's complaint alleged that
Jefferson violated Section 201(b) of the
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further charges that AT&T is trying to distract the FCC from concerns regarding
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service providers, the cost is estimated to be more than $ 190 million annually.
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1099:"AT&T Complaint Prompts FCC Letter To Google Inquiring About Google Voice"
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Brian
Silvestri, Hulya Altinsoy, Chris King and Jovita Sequeira (July 2010).
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to reach a voice-over-Internet gateway from which calls could be made to
416:(ILEC) based in Iowa, which entered into a commercial agreement with a
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998:"Fact Report: The Economic Impact of Free Conference Calling Services"
650:"AT&T vs. Google Voice: Sex, money, the feds, and your phone bill"
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issued its final order in 2009 in a complaint proceeding brought by
1154:"Letter to Sharon Gillett of the Federal Communications Commission"
930:"AT&T's 'Free Call' Bill: $ 2 Million — Tech News and Analysis"
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services which purported to be "free"; the companies operated from
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1350:"#104 The Case of the Phantom Caller - Reply All by Gimlet Media"
1319:
Article containing AT&T's complaint to FCC about Google Voice
277:
184:
165:
149:
296:, and that it should not be obligated to complete these calls.
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AT&T Corp. v. Jefferson Tel. Co., 16 FCC Rcd. 16130 (2001)
961:. 2008-09-15. Archived from the original on September 15, 2008
342:
235:
1324:
Article containing FCC inquiry regarding AT&T's complaint
1270:
AT&T v. Beehive Tel. Co., 17 FCC Rcd. Rcd. 11641 (2002).
404:
The FCC subsequently issued a ruling in 2009 on this case.
654:
778:. 2006-07-18. Archived from the original on July 18, 2006
719:"Great Lakes Communication Corp. v. Iowa Utilities Board"
919:. Web.archive.org (2007-04-03). Retrieved on 2014-06-15.
840:. Web.archive.org (2008-09-26). Retrieved on 2014-06-15.
408:
Federal Communications Commission administrative rulings
1203:"IN RE: QWEST COMMUNICATIONS CORPORATION, Complainant"
594:"Response to AT&T's letter to FCC on Google Voice"
547:"Rural companies, AT&T in tussle over phone rates"
79:(LECs) for calls to those carriers' subscribers. The
1299:"South Dakota House Bill 1097 Roll Call Vote Tally"
857:. Archived from the original on September 23, 2008
817:. Archived from the original on September 26, 2008
140:In 2006, various startup companies began to offer
1344:Iowa Utilities Board Docket Summary FCU-2007-0002
335:politics involved in these legislators' efforts.
1382:United States federal communications legislation
1169:"The intellectual contradiction of Google Voice"
572:"Sprint Nextel fights 'Traffic Pumping' Schemes"
487:"Sex, conference calls, and outdated FCC rules"
292:, is distinct from those of a traditional POTS
281:charging for other calls to US phone numbers).
996:Alan Pearce & Brian Barrett (March 2010).
991:
989:
851:"Sign up for a Free Fax Number from FaxDigits"
152:or used Iowa local numbers. One such service,
896:. Archived from the original on April 3, 2007
112:The numbers used for the service belong to a
8:
1189:"Lawmakers seek FCC probe into Google Voice"
1147:
1145:
1143:
1046:: CS1 maint: multiple names: authors list (
23:, is a controversial practice by which some
441:Several long-distance carriers lobbied the
232:Role in dispute between AT&T and Google
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380:State administrative commission rulings
47:Under the regulatory mechanisms of the
1230:McElligott, Tim (September 23, 2009).
1152:Robert W. Quinn (September 25, 2009).
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1281:"South Dakota House Bill 1097 (2010)"
1123:"10-28-09 Google Voice Letter to FCC"
304:, and accuses AT&T of conducting
7:
1061:Explanation on Google Product Forums
592:Richard Whitt (September 25, 2009).
1167:John Gapper (September 22, 2009).
732:. (PDF) . Retrieved on 2014-06-15.
168:) at no additional cost. Another,
114:competitive local exchange carrier
87:while handling lower call volume.
14:
1338:Federal Communications Commission
1019:Federal Communications Commission
890:"Call China. Make Calls to China"
705:Federal Communications Commission
485:Richard Whitt (October 9, 2009).
183:for the price of a call to rural
414:incumbent local exchange carrier
347:
240:
1232:"Porn Pumpers in Iowa Lose Big"
1034:"The Impact of Traffic Pumping"
754:"The Final Word on Futurephone"
392:and intervened by AT&T and
648:Sam Gustin (October 9, 2009).
545:Bruce Meyerson (May 7, 2007).
49:Telecommunications Act of 1996
37:Telecommunications Act of 1996
1:
1097:Kincaid, Jason (2009-10-09).
118:independent telephone company
1377:Telecommunications economics
1191:. Reuters. October 8, 2009.
286:plain old telephone service
1398:
1072:Siegler, MG (2009-09-25).
422:Communications Act of 1934
85:fixed infrastructure costs
978:: CS1 maint: unfit URL (
913:: CS1 maint: unfit URL (
874:: CS1 maint: unfit URL (
834:: CS1 maint: unfit URL (
795:: CS1 maint: unfit URL (
599:Google Public Policy Blog
492:Google Public Policy Blog
356:This article needs to be
249:This article needs to be
77:local exchange carriers
325:campaign contributions
179:By 2007, the calls to
106:interexchange carriers
57:long-distance carriers
31:in rural areas of the
772:"Call China For Free"
306:regulatory capitalism
75:, pay access fees to
1212:. September 21, 2009
707:. November 25, 2009.
396:against eight rural
386:Iowa Utilities Board
329:conflict of interest
321:U.S. Representatives
154:callchinaforfree.com
955:"FreeDigits Signup"
760:. October 19, 2006.
576:Broadband News Blog
398:telephone companies
1234:. Billingworld.com
758:The New York Times
302:network neutrality
193:Washington (state)
174:broadband Internet
21:access stimulation
671:External link in
618:External link in
511:External link in
437:State legislation
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132:in western Iowa.
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1313:External links
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1357:. Retrieved
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