Slashdot Mirror
FCC To Probe Google Voice Over Call Blocking
Over the past few months, we've been following the FCC's inquiry into Apple and AT&T after they rejected Google Voice from the App store. A couple weeks ago, AT&T did their best to deflect the FCC by dangling a shiny object in front of them — the use of Google Voice to block calls. It now appears the FCC has taken the bait, as they've sent an official inquiry to Google asking why the service restricts connections. "In its letter, the FCC asked Google to describe how its calls are routed and whether calls to particular numbers are prohibited. It also asks for information on how restrictions are implemented, how Google informs customers about those restrictions, whether Google Voice services are free, and if Google ever plans to charge for them in the future." Richard Whitt has already posted a brief explanation on Google's Public Policy blog. "The reason we restrict calls to certain local phone carriers' numbers is simple. Not only do they charge exorbitant termination rates for calls, but they also partner with adult sex chat lines and 'free' conference calling centers to drive high volumes of traffic." The FCC also received a push from members of the House of Representatives on Wednesday.
AT&T receives goverment aids so the rural area's get supported too, and then by law they have to support them. Google doesn't receive any money to run the *free* service, and they couldn't provide it as free if they had to support calls to those rural areas too (who are obviously abusing the system with their premium priced sex lines and so on)
Google could always make a system where users could call to those areas with credit so users cover the costs themself, but I dont see why they would need to.
I talked to someone that has been in the audio text business (aka 976 or 900 numbers) for years. He explained how this works.
The ability to make money on a number and charge it to the phone company goes back to old traditions in how phone systems work. When your phone company cannot connect a call directly they pay another company to do it for them. For example, if you called another country and your phone company did not operate in that area, your company would pay the company operating in that area to route the call. The company that completed the call would charge back to your phone company. Your phone company would charge a rate that would generally cover those charges. Since everyone was paying per/min it was pretty easy to figure out rates. As more and more long distance companies popped up over the years this tradition continued.
What audio text businesses discovered is that they could register themselves as long distance companies and terminate calls in their down systems (no real routing was happening). The numbers were non-explicit chat lines or up-sell ads to adult numbers. They could *still* make money even if the person never uses the 900 adult content number they are upselling.. As it has become easier and easier to purchase equipment to qualify as a long distance carrier people have setup "free" services. Many times these companies are heavily into the audio text business and the "free" services are simply a more "legitimate" way to make money.
As you can see, this can start to become a big problem for companies that sell flat rate service for domestic calls. The calls are terminating within what would normally be a local call, but the audio text company is charging back a fee that would normally be associated with calling a third world nation with limited phone services.
AT&T does have some what of a point. Google is treating some numbers differently than others.