Free conference-call services aren’t really free, the Federal Communications Commission says, as it considers a rule that will disrupt their business model
By Ryan Tracy and Drew FitzGerald Sept. 26, 2019 5:30 am ET WASHINGTON—The Federal Communications Commission is taking aim at free conference-call services it says exploit a regulatory loophole that sticks large telecommunications companies with expenses.
Callers pay nothing extra; they typically have a flat-fee service agreement with a major telecommunications company and aren’t charged more if a call is routed through a rural carrier. The new rule would force rural carriers to bear more cost for high call volume. If approved Thursday, the rule would take effect within months.
David Erickson, chief executive officer of FreeConferenceCall.com owner CarrierX LLC, said his service already charges for add-ons such as audio transcription and greetings, but the FCC’s changes could significantly hurt his business. Current rules, in place for decades, were intended to end monopoly control over the U.S. phone system.
Large phone companies responded with lawsuits and lobbying. The FCC began investigating the activity as early as 2007. In 2011, it lowered the fees that could be charged by companies engaged in the practice, known as “access stimulation” or “access arbitrage.”
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