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From: davep@u.washington.edu (David Ptasnik)
Newsgroups: comp.dcom.telecom
Subject: Still Another Phone Scam
Message-ID: <15408@accuvax.nwu.edu>
Date: 14 Dec 90 23:46:13 GMT
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X-Telecom-Digest: Volume 10, Issue 881, Message 6 of 10


Heard on GMA -

A California company called Flat Rate was offering long distance users
unlimited long distance calling for a flat rate of $195.00 per month
per line.  They required a hefty advance payment and hookup charge
(surprise, surprise) and for a while were actually placing calls.
Presumably most of this money was going into some nice fat bank
account, because the telqi pulled the plug fairly quickly.  A legal
document was shown, stating that Flat Rate owed Pac*Bell $300,000; GTE
$140,000; and MCI $1,400,000 (ouch).

GMA also stated that Flat Rate had applied for a business license in
Florida, and had already received one in Georgia.

They went on to hit small long distance companies pretty hard (there
are a few good ones, but ...) and stated that the FCC really didn't
have the time or staff to regulate companies smaller than AT&T, MCI,
and Sprint.  They ended with the standard warning - "If it sounds too
good to be true, it probably is!."

*ARRRRRGH*

I've been in a telecom career for several years now, and it really
annoys me when jokers like Flat Rate pull a scam like this.  I feel
that the telecom industry is getting a real reputation for sleazy
operations.

 I appreciate forums like the Digest.  They seem one of the better
ways for the industry to clean itself up, and help keep tabs on
miscreants like the AOS's or Flat Rate.  I don't really have a point
with this last bit, just wanted to air some frustration.  Stay
vigilant.  Don't let the bastards get you down.  Crime doesn't pay,
etc. etc. etc.


davep@u.washington.edu


[Moderator's Note: I agree with your premises. So what next? The
industry will get a lot worse before it gets better, believe me.  PAT]