Here’s an interesting example of how the principles of Net Neutrality can be linked back to the Internet’s older brother, the telecom network. A few weeks ago, AT&T began blocking calls to services like FreeConferenceCall.com. AT&T did this without filing a direct lawsuit, without petitioning the FCC and without even contacting Free Conferencing Corp, the parent company. These types of free services are completely legal and AT&T is using self-help and cowboy justice to financially bully competing services out of business. You can learn more at blog.freeconferencecall.com.

I am not at all clear on the legal process that is appropriate for AT&T and FreeConference to follow. However, it is clear that the FreeConference business model is simply a result of regualtory arbitrage. Because of the combination of overpriced terminating access and Section 254(g) of the telecom Act that mandates geographic rate averaging, AT&T cannot pass along the higher costs to the customers who are calling these numbers. It MIGHT have some possible rationale to provide service for rual customers (although even this is highly doubtful) but to provide people like me with free conference calling and a profit for the company at the expense of long distance providers could not have been the intent of these provisions.

Bottom line is that somehow this situation should be changed, and it should not be preventing AT&T from blocking calls without allowing AT&T to charge a higher price to call these numbers.