How Does FreeConferenceCall.com Make Money? (2012)

Clever, but it still sounds like it wouldn't add up to that much. They only make a small amount when it connects to a user connected through a small phone company right? Based on this description connecting someone on AT&T in NYC to Verizon in LA wouldn't result in any revenue.

Re: How Does FreeConferenceCall.com Make Money? (2012)

#5

Post by bckygldstn » Tue, Aug 14, 2018, 11:51 PM UTC

misterprime wrote: post #4

Clever, but it still sounds like it wouldn't add up to that much. They only make a small amount when it connects to a user connected through a small phone company right? Based on this description connecting someone on AT&T in NYC to Verizon in LA wouldn't result in any revenue.

I guess the conference call company is located behind a small rural carrier? Then they can charge the incoming AT&T and Verizon callers 8c each.

Re: How Does FreeConferenceCall.com Make Money? (2012)

#6

Post by toomuchtodo » Tue, Aug 14, 2018, 11:51 PM UTC

misterprime wrote: post #4

Clever, but it still sounds like it wouldn't add up to that much. They only make a small amount when it connects to a user connected through a small phone company right? Based on this description connecting someone on AT&T in NYC to Verizon in LA wouldn't result in any revenue.

You put the conferencing gear in rural telco colos where the termination fee is high.

It’s a public policy (universal service fund) arbitrage play.

Re: How Does FreeConferenceCall.com Make Money? (2012)

#7

Post by aaronpk » Tue, Aug 14, 2018, 11:51 PM UTC

I can't believe this post is making the rounds again six years later. Reply All did a great podcast about a similar issue, it's worth a listen!

https://www.gimletmedia.com/reply-all/104-case-phantom-calle...

Re: How Does FreeConferenceCall.com Make Money? (2012)

#8

Post by coderholic » Wed, Aug 15, 2018, 12:14 AM UTC

misterprime wrote: post #4

Clever, but it still sounds like it wouldn't add up to that much. They only make a small amount when it connects to a user connected through a small phone company right? Based on this description connecting someone on AT&T in NYC to Verizon in LA wouldn't result in any revenue.

It sounds like they get ~$0.04/min for every user. I bet that adds up!

Re: How Does FreeConferenceCall.com Make Money? (2012)

#9

Post by samspenc » Wed, Aug 15, 2018, 12:16 AM UTC

coderholic wrote: post #8

misterprime wrote: post #4

Clever, but it still sounds like it wouldn't add up to that much. They only make a small amount when it connects to a user connected through a small phone company right? Based on this description connecting someone on AT&T in NYC to Verizon in LA wouldn't result in any revenue.

It sounds like they get ~$0.04/min for every user. I bet that adds up!

Back of the envelope calculation:

Avg of 30 min conference calls x say 1 million users per month = $1.2 million a month, or $14.4 million a year

Re: How Does FreeConferenceCall.com Make Money? (2012)

#10

Post by auser24 » Wed, Aug 15, 2018, 12:40 AM UTC

>the government allows them to charge

Seems like an euphemism for "the government forces the others to pay".