Fun_People Archive
20 Oct
Phone Fun 800

Date: Thu, 20 Oct 94 03:07:52 PDT
To: Fun_People
Subject: Phone Fun 800

From: "Brock N. Meeks" <>

CyberWire Dispatch// Copyright 1994 //
Jacking in from the "There's No Free Lunch" Port:
Washington, DC -- So you think that all calls to an 800 number are free?
Think again.
Not only are some calls to an 800 not free, you may be getting popped for
the bill without knowing it.
I know, I know.  Where is the trust?  A free call to an 800 number is one
of the few remaining "free lunch"  perks us ordinary Joe's and Jane's had
going for us.
Actually, the practice of allowing companies to charge for 800 number calls
has been going for a while now.  Funny how such rules slip into being
without much fanfare, eh?  Do you recall any of the long distance phone
companies taking out ads to tell you this news?
I mean, MCI could have taken their obnoxious Saturday Night Live frontman
-- the one that does the insufferable 1-800-COLLECT ads -- and had him
whine:  "Hey, Phoners... not all 800 calls are FREE anymore.  Get a Clue,
Phone Dude."
Although there are legitimate uses of "for fee" 800 services, the practice
is still highly dubious.  Why?  Because it does run against a certain
"trust" telephone companies have built up.
Don't believe me?  Try this.  Ask the next 10 people you see this question:
Are calls to an 800 number free?  I'll bet 9 of 10 tell you "Yes."
Of course, the Dial-A-Hard-On sex chat lines were the first to learn how to
abuse the "right" of being able to bill for 800 calls. The sex chat folks
would, in essence, issue an instant 'calling card' to some sweaty, heavy
breather, creating an "business relationship" which was allowed under the
for-fee 800 billing rules.  The caller would get a PIN with his instant
calling card.  On subsequent "visits" the caller tapped in the PIN and the
meter began ticking.
The tricky part came in on the billing side.  Businesses, hotels and
college dorms routinely block calls to 900 numbers, afraid of the potential
for untraceable and astronomical bills.  But such isn't the case with calls
to 800 numbers.  "Why block calls to free 800 numbers?" goes the thinking.
Here's another bit of "Inside Telco" info for you:  Whenever you make an
800 number call, all sorts of information is "captured" by the service
you're calling.  Name, address, telephone number, etc. Neat trick, eh?
It's done using a nifty piece of software called Advanced Intelligent
Network or AIN or short.
Well, these porn lines would issue an instant PIN tied to the AIN
information off the original 800 number call.  So, if you called a sex line
using an 800 number from the Rectory of your local Catholic Church or the
office of a congressman and were issued a PIN, any later calls you made
would be *billed to the church or congressman's phone* because the porn
line guys "captured" the billing address information from that phone.
Suddenly, businesses, hotels and college dorms (don't know about churches
or congressman's offices) were hit with tens of thousands of dollars in
bogus billings, all tied to porn lines.
The FCC and Federal Trade Commission hammered such loop holes last August
after a hue and cry of public complaint.
The trick for billing to an 800 number is that it can done if one of three
criteria are met:  (1)  The call is billed to a credit card.  (2) The call
is billed to a pre-subscribed calling card. (3) An established billing
agreement between caller and service provider is in place.
For example, say an Internet service provider wants to establish nationwide
service, but doesn't have local calling numbers in place in every city.
The answer might be to buy a huge block of time from a long distance
company to get cheap rates and then allow callers to connect via an 800
number that is billed to a credit card.  Not perfect, but legitimate.
AT&T To MCI: Hold The Phone
But on Wednesday those madcap pranksters of the long distance market, AT&T,
decided that MCI had pissed on their parade one too many times.  So, AT&T,
October 19, filed a formal complaint with the FCC against its closest
competitor over a service it launched called 1-800-CALL-INFO.
AT&T claims the service is illegal because it violates federal rules
governing billable 800 calls.
The MCI service connects the caller to an information operator. Anywhere,
anytime, from any phone.  It's an ingenious service, and one that, if left
intact, is sure to eat into AT&T profits just as the brilliant
1-800-COLLECT service has kicked AT&T's ass in the collect calling market.
But like the 1-800-COLLECT service, MCI has chosen not to "brand" the
service.  In other words, they don't tell you it's an MCI service.  Are
they embarrassed of their own brand?  Some folks at AT&T think so, but they
cherish their pension plan and wouldn't go on record saying it.
So, having been embarrassed at the drubbing they've taken in collect
calling market, AT&T's gone to the FCC complaining about the MCI's 800
directory service.  AT&T's complaint says that MCI bills customers for the
service without informing them beforehand of the cost. (Hey, AT&T... it's
right there in *really, tiny print* on the TV screen...)
Dispatch called MCI for comment; no calls were returned.

[=] © 1994 Peter Langston []