So I assume AT&T are the ones charging large ammounts of money to connect a call to an exchange. Their comments on the issue are nothing but spin. I think this bit confirmed that they are talking bs.

"If, as Google claims, it is allowed to block whichever Google Voice calls it wants and the FCC is powerless to stop it, then Google also can block whichever Internet sites, applications, services or content that it wants and the FCC cannot do anything about that either."

Can google block internet sites?
only there own sites.

Can google block internet sites from appearing on there search engine?
yes.

Do they already do this?
yes.

Are google entitled to do any of the above?
yes, if you dont like it then dont use google.

The serious problem here is that AT&T demands a double standard, and the FCC usually capitulates.

The telecoms banded together and demanded that companies who interconnect the Internet with regular phones (such as Google with their Voice product, Gizmo Project, IdeaSIP, Skype, etc) all should be regulated as telecom companies, and subject to telecom laws. This was to protect themselves from competition, really, since they refused to be competitive on their own.

The FCC agreed, and passed regulations stating that such providers have to follow normal telecom rules if they operate in the US: their users must have access to 911 at all times, the calls must all be subject to governmental recording, and the companies have to pay into the USF (Universal Service Fund -- which pays companies like AT&T hundreds of millions of dollars in order to try and convince them to build lines in rural areas).

The only way to be free of such stipulations is to either NOT be a company in the US, or to ONLY do Internet to Internet communication. As soon as you mix Internet and other, you are no longer an 'Internet Service,' you are an 'Interconnected Phone Service.'

One of the regulations is that, even though some local telecoms (who are also paid USF money) charge ridiculously high rates to terminate calls, as a telecom, you are required to NOT block any 'legitimate' phone traffic to them (don't even get me started on the scam that this has afforded and perpetuated).

AT&T has been railing against this for years, as they literally hemorrhage money from companies which abuse the local telecom tariff system.

But now that there's a company that offers communications services, and would provide another, easy target for those scammers, AT&T is furious that someone might be able to avoid losing money. Especially since Google being a target of the scams would keep some of the scammers away from AT&T and they might not lose as much money.

AT&T desperately wants the law changed to protect themselves, but since they've had little luck with that, they're perfectly happy to use Google as a partial shield, and that's what this is all about -- forcing Google to be recognised as a telecom service in order to take a little of the heat off of AT&T.

Unfortunately, given AT&T's record with lobbying VERY heavily to the FCC, and the extremely tight relationships they have in the government, it's very likely that Google will be negatively affected by this, which means that Google may very well have to drop their Voice product.

As usual, the ones who suffer the most are the consumers.

I guess I'm prejudiced against the evil snooping at&t satanist cult seeings they have no problems letting the spooks listen in on domestic calls and have a standing protection from lawsuits leaving bankruptcy the last option for wiping there foul stink out of existence.

So Google is a telecom company now? No they just route calls around the internet. They don't connect driect to customers and lease them a line, and in fact Google voice doesn't work unless you have a phone.

As such if Google refuses to route the call then just call through normally. That's the reason it's not held to the same rules. It's not a phone company.