Re: A Service Message From FreeConference.com

[David Farber <dave () farber net>]

Begin forwarded message:

From: "Atkinson, Robert" <rca53 () columbia edu>
Date: March 17, 2007 8:44:29 AM EDT
To: dave () farber net
Subject: RE: [IP] Re: A Service Message From FreeConference.com

This sounds like it would be similar to international telephone and fax
services where an overseas user is assigned a phone number in a rural
(typically Iowa)telephone exchange. A US caller/faxer then calls that
number in Iowa where the call/fax is converted to IP for delivery to
(typically) China.

The money comes from the rural LEC's extremely high (5 cents/min or
more) terminating interstate access charge. In the international service
context, the Iowa RLEC probably keeps all of the money with the Chinese
partner collecting a small fee from the subscriber in China.  In the
case of domestic conference calling, with multiple callers all calling
into the Iowa exchange at 5 cents/min. access charge, there would be
plenty of money to split with the owner/operator of the conference call
bridge (if it isn't the RLEC itself.)

In addition to this self-help "urban-to-rural" subsidy, the RLEC may
also be getting Universal Service Fund payments. Sweet deal.

A year or so ago (when I was Chair of NANC) I was told that there were
at least 14 rural LECs in Iowa providing this service. There was some
concern by state regulators that these services were exporting "local"
telephone numbers at such a prodigious rate that new area codes would be
required.

Bob

-----Original Message-----
From: David Farber [mailto:dave () farber net]
Sent: Saturday, March 17, 2007 8:05 AM
To: ip () v2 listbox com
Subject: [IP] Re: A Service Message From FreeConference.com



Begin forwarded message:

From: jordan pollack <pollack () brandeis edu>
Date: March 16, 2007 10:36:37 PM EDT
To: dave () farber net
Subject: Re: [IP] Re: A Service Message From FreeConference.com

Isn't there a piece of the story missing?   I'm guessing that
FreeConference makes its money on receiving some kind of origin/
destination settlements from the carriers, which might be REAL money
from the wireless guys and the phonebooth guys.  Anybody have any
idea how free conferencing works as a business model, (since there is
no google text ads read aloud while you wait for the calls:)

jordan



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