AT&T Stuck With 2 Million Dollar Bill for "Free" Iowa Phone Calls

AT&T has been stuck with the bill for those “free” international phone calls you made by calling Iowa. From GigaOm:

When AT&T’s average monthly bill to one such Iowa telco, the Superior Telephone Cooperative, went from $2,000 to $2,000,000, it was time for Ma Bell to call the fine-suited folks at Sidley Austin LLP5 to try to close the loophole down….Filed in the U.S. District Court for the Southern District of Iowa, Central Division, AT&T’s lawsuit seeks to stop FuturePhone as well as the telcos who provide local infrastructure from continuing with their operations that use regulatory-fee arbitrag1 and VoIP to provide international calls for only the price of a long-distance call to Iowa. Though the case was just filed on Jan. 29, it has already apparently caused FuturePhone to shutter its service, and has produced nothing but “no comment” replies from the Iowa LECs we contacted who were also named in the suit.

Party’s over, baby.—MEGHANN MARCO

AT&T’s Free Call Bill: 2 Million [GigaOm]


Edit Your Comment

  1. acambras says:

    When I first saw this, it looked just too good to be true.

    Guess it turned out to be good for callers — not so good for AT&T.

    Like Meghann said, the party’s over.

  2. MarcAnthony says:


  3. MeOhMy says:

    I’d have loved to have been sitting in ATT’s A/P department when THAT little bill rolled on.

  4. matrixhax0r says:

    Um, why don’t they have cingular do AT&T accounting? Maybe they can achieve a 99% discount.

  5. krunk4ever says:

    According to Pat Phelan (owner of

    We are expanding rather than closing launched today bringing the same good deals to the Irish consumer