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Showing posts from February, 2008

Cheap talk about talking cheap?

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To avoid expensive overseas calls many people in the developing countries rely on callback systems (invented in 1990 by Argentine/Spanish entrepreneur Martin Varsavsky ). Here is how it works. A call is placed to a toll free number, followed by a PIN code unique to each subscriber. Within seconds of the subscriber hanging up a computer calls back to accept the desired destination number. Trans border calls set up using callback systems are far cheaper than the rates charged by local phone companies since callback calls originate from low tariff networks in the West (notably America). Understandably this practice incenses telephone monopolies and the governments that support them. Large chunks of income is lost by operators along with depressed tax collected. One way to stifle callback systems is to blacklist and block calls to known toll free numbers. In some countries legal action is an option available to the operator and is a deterrent for those contemplating use of call back ne