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« TalkNow by MobileCrunch | Main | Tom The Lawyer »

January 11, 2007

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Garren

But isn't this nothing else like Futurephone and a toll number and provided within the US only. How can these companies make money? How can they survive without business model? There is no such thing as free lunch ... I'm sure the catch/scam will pop up soon!

Brad Templeton

Now oddly, while rebtel and the rest are doing minute competition, this is one of the few activities you could call "minute stealing."

Calls to this NPA-NXX cost 6 cents/minute, compared to 0.5 cents/minute for urban ones. Thanks to rural telco rules.

So this take advantage of people with blended rate plans or flat rate LD, which almost all cell carriers and consumer voip carriers offer. If this gets heavy usage, the carriers will try to stop it because it's not just competing for revenue on LD calls. It's not just a lost sale it's a negative sale, where the blended rate pays for this service indirectly.

So if you want to call something minute-stealing, you've found your target!

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