AllFreeCalls is back alive, for how long?


Michael Arrington from TechCrunch just broke the news that AllFreeCalls, a phone company offering free international calls by taking advantage of a loophole in the complex telco laws, is back alive, now under a new name. The service launched earlier this year but only managed to stay afloat for about a month before AT&T sued them and a few other startups.

Notably FuturePhone, another company with similar business model, has removed the “service not available” sign and instead has a long message on their front page explaining why free international calls are legal. Here is an interesting bit that might shed some light on how these companies manage to avoid being shut down:

Since Futurephone did not charge for its service and 100% of the calls went over the internet, Futurephone does not fall under the category of a telecommunications carrier. Futurephone provided an internet connection.

Which brings an interesting point. You are only making a phone call if you pay for it, otherwise you are, hmm, browsing internet?

Anyway, I have never really questioned legality of what these companies are doing, yet I have always believed that building your business around hijacking tax subsidies is not a very good idea. This might work for a while but eventually legislation will catch up and the loophole will close.

For the time being however, if certain moral implications are swiped away, you can “yak” your free phone calls.

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4 Responses to “AllFreeCalls is back alive, for how long?”

  1. 1 Clem May 15th, 2007 at 7:42 am

    You should do some research before you write. There are no taxes used in’s business model.

  2. 2 Yan May 15th, 2007 at 8:05 am

    How do you think the free phone calls are funded? Here is a good reading on the topic.

  3. 3 Clem May 16th, 2007 at 8:54 am

    The taxes (Universal Service Fund) is given to companies in the NECA pool, none of the companies involved were in the pool. Don’t believe everything that is written.

  4. 4 Yan May 16th, 2007 at 10:13 am

    “none of the companies involved were in the pool”

    Can you prove it?

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