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How Can A Free Conference Call Be Free?

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Re: How Can A Free Conference Call Be Free?

#51

Earlier quoted context omitted.

FWIW - AT&T is now in SD. (grew up there, and still have family in the state).

And in Montana as well when they purchased Alltel in 2009.

I was getting ready to correct you, when I researched the Alltel acquistion.

Verizon purchased Alltel, but was required by the FCC to sell off 105 of the markets, which is where ATT stepped in and bought a bunch of those markets.

FWIW, my Alltel account was switched over to Verizon in 2009.

Re: How Can A Free Conference Call Be Free?

#52
post #43

A similar thing happened in New Zealand (and likely elsewhere) in the late 90's, before broadband became prevalent. There were a number of ISP's who provided free dial-up internet, because they made money from termination fees when the majority of people called from a large telco to their smaller one. Eventually the large telco reached a commercial agreement and the service was scrapped, but it was good while it last…

Same thing in Ireland, except that we paid for the calls. So we paid 2c per minute, of which the ISP maybe 1c got from the telco in termination fees, so there was a lot of "free" internet access at the time.

Same in Brazil, where free ISPs owned by small telcos in the then-recently deregulated market were incredibly important in making the Internet popular during the 90's. The free ISPs became so good that they started competing with for-pay ISP at every level, including speed.

Of course broadband made the whole thing obsolete.

Re: How Can A Free Conference Call Be Free?

#53

Bear with me here, but it seems to me like this is a good argument for socialism. Consider: why do termination fees exist? Clearly, as America was being wired with telephone service, the cost to run lines to rural areas was prohibitively expensive. So what's the capitalist/Randian thing to do? Well, charge more for phone service out there. If people can't afford it, then they'll move to where it is cheaper to have a…

In both cases, American citizens end up paying the bill for those expensive phone lines. In one case, they pay for them through increased food prices and in the other case, through taxes. You still need to make a case as to why paying for the lines through taxes is somehow better then through price increases.

Re: How Can A Free Conference Call Be Free?

#54

Interesting, I dint know that. I had an interesting experience with ATT. I was into the 6 month of a 2year contract back in 2007. I wasn't using my phone much (non-iphone). But then I went on a road trip to Yellowstone, which included driving through ND, SD, MT and WY. During this 7 day trip, I was using my phone a lot (work + personal). The total amount of minutes I spent in those 7 days were way more than my usual…

We were in a similar situation in 2005, when we moved from Kansas to NE Missouri. After a couple of months, an AT&T representative called an relayed much the same as above.

However, they let us out of our contract, gave us the phones, and paid us for the phones (since we had just renewed with them) at around $200 each.

It was quite a pleasant surprise.

Edit: And then they bought a tower in town when the iPhone came out. Go figure.

Re: How Can A Free Conference Call Be Free?

#58
post #50
post #32

I once read that this is how MagicJack makes most of their money as well.

It's interesting that you bring you MagicJack. I have always wondered how they made money. Now it is starting to make some sense. Can you share the link to that article?

This article (http://www.telecomlawmonitor.com/2011/04/articles/access-cha...) explains th FCC decision against the company for trying to exploit this model.

Re: How Can A Free Conference Call Be Free?

#59
As VOIP becomes more common, I've found that some people consider it rude to use these free services. Things have shifted from a VOIP setup not being a proper phone because it can't connect with these numbers, to these numbers not being proper conferencing because VOIP users can't call them.

Re: How Can A Free Conference Call Be Free?

#60

So, given all this, why wouldn't AT&T offer a competing free conference service where they keep the termination fee?

AT&T already has a conferencing business; why should they jeopardize it when they can just crush their "illegal" competitors? It's just like why Hollywood won't fight piracy by lowering prices.
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