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Lynn Fosse, Senior Editor

Steve Alexander, Associate Editor

Bud Wayne, Editorial Executive

Christy Rivers - Editorial Executive

Valerie Austin - Editorial Associate

INTERview











Class Action and Antitrust Lawsuits Filed Against Major Telcos Transforming Telecommunications for 373 Million Subscribers


Editorial by Bud Wayne:

I have read the attached Class Action and Antitrust lawsuits and done my own reach. Below is my editorial regarding the two complaints.


Introduction


Join VoIP-Pal and the Class Action: State Attorneys General, Chair of the FTC, and the Department of Justice


This is a call to action on behalf of every American who has been denied a fundamental choice — a choice that should be theirs by right, not dictated by corporate monopolies. For years, AT&T, T-Mobile, and Verizon have engaged in illegal practices by tying cellular calling and texting to Wi-Fi calling, depriving consumers of the option to choose standalone services. This conduct is a blatant antitrust violation that restricts competition and limits consumer freedom.


It's time to hold these telecom giants accountable. Their forced bundling practices have stifled market competition, resulting in fewer choices and higher costs for consumers nationwide. The impact is especially severe for vulnerable groups, including seniors, low-income families, and rural communities who already struggle to access affordable services.


Joining the efforts of VoIP-Pal and the Class Action Antitrust Complaint means standing up for the rights of 373 million smartphone users. This case aims to restore fairness and competition, ensuring that consumers have affordable and diverse options. With your support, we can bring much-needed relief to millions of Americans burdened by these anticompetitive practices.


In addition to the antitrust violations, the defendants have breached four provisions of the U.S. Constitution. As legal advocates, we share a duty to uphold these constitutional principles and protect the rights of our citizens. Taking action against these violations sends a clear message that no company is above the law and that justice will prevail.


Your Voice Matters: A long-time perseverance effort for VoIP-Pal and the 373 million American subscribers who have been illegally forced to purchase tied products that need to be untied. This fight is about restoring consumer choice and protecting the rights of millions who have suffered from these restrictive practices.

Take Action Now: We urge you to join us in this fight. Write to your State Attorney General, the Chair of the FTC, and the Department of Justice, expressing your support for this two historic almost identical Antitrust Actions. Additionally, show your support by writing directly to Richard Inza at richardinza@gmail.com. Together, we can demand justice, ensure market fairness, and protect millions of Americans from ongoing harm.


Editorial: It's Time to End Telecom Tying Practices — A Fight for Consumer Choice and Fair Competition

Apple and Samsung Owe Their Success to Steve Jobs — Here's Why:

Steve Jobs didn't just revolutionize the tech industry with the iPhone; he transformed the entire telecom landscape, giving companies like AT&T, Verizon, and T-Mobile a golden opportunity. Before the iPhone, these carriers had to invest billions in building cellular towers and purchasing costly spectrum. Today, thanks to the iPhone's smart configurations, they've found a way to bypass these massive expenses. When both the caller and callee are using Apple devices, the call is free. The same goes for WhatsApp — if both parties use the app, the call costs nothing. This allows carriers to avoid major infrastructure investments while continuing to charge consumers for services tied together with unnecessary cellular plans.


Who Benefits? The Telecom Giants and Smartphone Manufacturers.

The winners are not consumers but the telecom giants and smartphone manufacturers like Apple and Samsung. These companies have mastered the art of inflating prices, charging three times the manufacturing cost of their smartphones. Meanwhile, AT&T, Verizon, and T-Mobile exploit your internet connection to offload calls via Wi-Fi, reducing their own network costs. Despite the savings from offloading, they still force you to pay for cellular calling and texting tied to Wi-Fi calling. This is not just a business strategy; it's an abuse of market power designed to maximize profits while limiting consumer choice.


The Reality of Offloading: Profits for Telecoms, Costs for Consumers, and Legal Violations

Offloading refers to the practice of shifting call and data traffic from the carrier's cellular network onto Wi-Fi, using your home internet connection. This reduces the load on their cellular networks and saves billions in infrastructure costs annually. By leveraging your Wi-Fi, the carriers avoid building and maintaining costly towers while still charging you full price for tied services.

The practice of tying cellular calling and texting to Wi-Fi calling isn't just financially beneficial for the carriers; it's also illegal. It breaches five sections of the Sherman and Clayton Acts, core antitrust laws designed to prevent monopolistic practices, and directly violates Section 251 of the Telecommunications Act of 1996, which prohibits restrictive tying arrangements and mandates fair competition. The telecom companies are inflating consumer costs and violating federal laws by denying consumers the choice to opt for standalone Wi-Fi calling.


The Financial Toll on Consumers: Billions in Overcharges Every Year

The burden of these tying practices falls heavily on the 373 million American smartphone subscribers, who are forced to pay for services they don't need. Industry estimates suggest that consumers are collectively overcharged by $60 billion annually due to these unlawful tying practices. This hidden cost inflates the price of communication services for millions of families and individuals who primarily use Wi-Fi for calls and data but are still required to pay for unnecessary cellular plans.


VoIP-Pal Offers a Solution: Standalone Wi-Fi Calling for Real Consumer Choice

VoIP-Pal is stepping up to challenge this problematic business model and offer a better option. For years, telecom companies have forced consumers to pay for tied services that include unnecessary cellular calling and texting, leading to billions in excess charges. VoIP-Pal advocates for a standalone Wi-Fi calling option, providing consumers the freedom to choose the services they need without being tied to costly cellular plans. This isn't just about lowering costs; it's about empowering consumers and breaking the stranglehold of restrictive telecom practices.


The Influence of Telecom Giants on Market Choices: Stifling Competition and Innovation

Telecom companies have gained substantial control over the market, shaping how services are offered and severely limiting consumer options. Smaller competitors trying to provide standalone Wi-Fi calling services face insurmountable regulatory barriers and legal threats. This dominance stifles innovation and keeps prices high, preventing consumers from accessing more affordable alternatives. It's time to level the playing field and encourage competition that benefits consumers.


The Hidden Costs: How Tied Services Drive Up Inflation

The forced tying of services by telecom companies doesn't just hurt individual wallets; it contributes to inflation by driving up the overall cost of living. Let's examine how switching to a standalone Wi-Fi-only plan can lead to significant savings for families and individuals.


Economically Vulnerable Family of Four:

For a family of four earning $50,000 per year and currently paying $200 per month for a plan tied with cellular calling, switching to an unlimited Wi-Fi-only plan for $20 per month could make a huge difference:


Item Amount ($)

Current Plan Cost per Month 200

Current Plan Cost per Year 2,400

Wi-Fi-Only Plan Cost per Month 20

Wi-Fi-Only Plan Cost per Year 240

Total Monthly Savings 180

Total Annual Savings 2,160

Additional Rebate per Person ($12 x 4 people) 576

Total Net Savings per Year 2,736

Family Net Income per Year 50,000

Savings Percentage 5.47%


Conclusion:
Switching to a Wi-Fi-only plan could save this family $2,736 per year, providing a boost of 5.47% to their net income. For many families, these savings could be life-changing, allowing them to cover an extra month's rent, pay down debt, or build an emergency fund. One parent shared, "With the savings from switching to Wi-Fi-only, we could finally have breathing room in our budget instead of constantly worrying about bills."

Economically Vulnerable Individual Subscriber:

For an individual earning $50,000 per year and paying $60 per month for a plan tied with cellular calling, switching to a $6.50 per month Wi-Fi-only plan would result in substantial savings:


Item Amount ($)

Current Plan Cost per Month 60

Current Plan Cost per Year 720

Wi-Fi-Only Plan Cost per Month 6.50

Wi-Fi-Only Plan Cost per Year 78

Total Monthly Savings 53.50

Total Annual Savings 642

Additional Monthly Rebate ($12) 144

Total Net Savings per Year 786

Net Income per Year 50,000

Savings Percentage 1.57%


Conclusion:
This individual would save $786 per year, providing an increase of 1.57% to their income. For many, this extra money could help cover essential expenses like medication or groceries. As one subscriber put it, "The savings would make a big difference for me. It feels unfair to pay for services I don't use — having a choice would finally let me control my own costs.
"


A Call for Legislative Action: The Time for Change Is Now

This isn't just about reducing your bill; it's about ensuring a fair marketplace that prioritizes consumer choice and transparency. The telecom giants have shaped the market in their favor for far too long, using tying practices that inflate costs and violate antitrust laws, including the Sherman and Clayton Acts and the Telecommunications Act of 1996. It's time for lawmakers and regulators to intervene, put an end to these restrictive practices, and promote fair competition.


The message is clear: We deserve better. Consumers should have the freedom to choose the services they need without being forced into paying for tied cellular calling plans. It's time to demand fair competition, protect consumer rights, and end the era of inflated telecom pricing.


Q&A with VoIP-Pal CEO Emil Malak

Q: You're a small "David" taking on these corporate "Goliaths." Isn't this an impossible fight?

A: It might seem like an impossible battle, and yes, the odds are against us. But I've faced long odds before. When we started this journey nearly 20 years ago, many said Wi-Fi calling was a fantasy. Yet today, it's a standard feature on every smartphone. In a true democracy, justice should have a chance to prevail, no matter the size of the opponent. I have the unwavering support of my fellow directors, and that gives me the strength to keep fighting. If we don't stand up to these giants, who will?


Q: This litigation could drag on for years. Can VoIP-Pal handle the financial strain?

A: We're fully aware of the challenges ahead. The defendants will likely file dozens of motions, trying to drain our resources and delay the case indefinitely. But we've seen this before. In previous battles, they launched 36 Inter Partes Review (IPR) challenges against us, and we overcame every single one. Succeeding in even one IPR is a significant achievement; overcoming 36 is almost unheard of. This experience has fortified us, and we're prepared for a long fight. We know what it takes to stand our ground.


Q: Which motions do you anticipate will be the most significant challenges?

A: The two most critical motions will be the motion challenging our standing and the motion based on litigious tactics. Let them come. We have a proven track record in defending against these types of motions, and we're ready to present our case. Our experience with the IPR challenges has given us the confidence to face whatever tactics they throw our way.


Q: Aren't you afraid of taking on Silicon Valley and the top three telecom companies?

A: Fear is natural, especially when you're up against some of the most powerful corporations in the world. There were moments of doubt when it felt like we were standing alone against an army. But my commitment to monetizing our shareholders' investments and fighting for the rights of 373 million smartphone subscribers outweighs that fear. The support of my fellow directors and our shared belief in this cause keep me going. This isn't just about VoIP-Pal; it's about standing up for what's right and ensuring fair competition.


The future starts now. Let's build a communications market that puts consumers first, fosters innovation, and ends restrictive practices once and for all.



NOTE: This content is not the view of nor endorsed by CEOCFO Magazine or its advertisers.

VoIP-Pal is actively developing the next phase of Wi-Fi calling technology, which we believe will be transformative for the industry. Our technology could become the carriers' best ally in adapting to the evolving telecommunications landscape.

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