Free International Calls

I came across an article on awebsite that offers free international calling.  It turns out that it is one of many - all based in rural Iowa.

It sounds too good to be true - until you learn that they are simply involved in arbritrage, and taking advantage of FCC rules.

Normally, a telephone company gets less than 1 cent per incoming long distance call.  But, rural phone companies, especially in Iowa, are subsidized and can get up to 10 cents per minute.

Since wholesale international minutes to countries like the U.K. cost less than 2 cents/minute, an arbritrage opportunity presented itself. 

So, when you call this site's number in Iowa, your phone company has to pay them X amount per minute (even if you are on an unlimited long distance plan) and they have to pay Y amount per minute to connect you internationally.

So, you are getting free phone service because all phone customers (via the Universal Service Plan) are making calls to rural Iowa more expensive than international calling.