We reported not long ago on free international calls available by calling Iowa. Now, AT&T has filed a lawsuit in Iowa saying that schemes like this have raised fees billed AT&T from two thousand a month to two million a month. Filed on January 29th, the lawsuit seeks to stop services from using regulatory-fee arbitage to provide international calls for only the price of a call to Iowa.

AT&T insists it is an attempt to bilk them to make a profit. Their main argument in the lawsuit is that since the calls are not really terminated in Iowa, since they are transferred overseas, they should have to pay the fees. We will monitor this as it develops.