Telephone Arbitrage ...

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Sg4

Digital Media Guru
Nov 18, 2006
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You guys might have heard about AllFreeCalls.net | End The Rip-Off: Make Free Calls from The USA from TechCrunch or elsewhere, but what maybe you didn't hear is how these guys make money.

AllFreeCalls.net | End The Rip-Off: Make Free Calls from The USA allows you to make free international calls.

According to TechCrunch,

The company operates under a legislative loophole that gives rural
telco’s a kickback on every received call.
That kickback is greater than the cost the company bears for making
outbound international calls.
Click to expand...

So, basically you make a free call to Iowa and you are routed to the international area code of your choice via VOIP.

Thats cool enough, but the company gets a 13cent kickback for every minute you spend on the phone, while they route your call for 1-3cents per minute with VOIP to your country of choice.

So, last month supposedly 80,000 minutes were used with the service ...hmm.

Thats about $9k a month profit. Don't get any ideas yet though, similar companies are being sued by AT&T.

Further reading: GigaOM » AT&T’s ‘Free Call’ Bill: $2 Million
 


too confusing!?
1. you make a call through them
2. they pay 2 cents a minute for your call
3. they recieve 16 cents a minute for your call
4. they laugh as they rake in 8:1 roi

thats fuckin pimp
 
Th3Boss said:
so what if u just called someone and both of u just leave the phone while still on call with them and leave it for like an hour or 2 and do that a few times a day, and u are a millionare in no time
Click to expand...

well if your a telecom that falls under the loophole they're exploiting then yes
 
interesting - always cool seeing how these places make money - looks like the time to get in on that has passed though if they are being targeted by the big guys...

i wonder how much $$$ it would cost to set up an operation like that?
 
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