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09 May

Sam Gustin of Daily Finance suggests that there may be issues of conflict of interest and pork barrel politics involved in these legislators' efforts.

The Iowa Utilities Board issued its final order in 2009 in a complaint proceeding brought by Qwest and intervened by AT&T and Sprint Nextel against eight rural telephone companies in Iowa.

Many wireless and land line customers now have unlimited long-distance plans, and thus the entire inflated cost of using these services is borne by their long-distance carrier.Except for one call blocking finding against Sprint, the decision was unfavorable for the rural carriers, which may have to return the fees they received for calls directed to traffic-pumped services by Iowa residents.However, damages have not yet been assessed and the Iowa Utilities Board does not have jurisdiction over the vast majority of disputed calls—those that were directed to Iowa from callers in other states—so the reach of its decision is limited.For the first two years, they may bill interexchange carriers directly at an initially-high rural rate of five to thirteen cents per minute.A sudden increase in inbound calling volume at about the same time as a telephone company leaves the NECA pool therefore can represent profitable two years for that firm.