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"The fact is, we agree that the FCC needs to fix the current rules for compensating phone carriers." A spokesperson for the FCC declined to comment, and AT&T did not immediately return calls requesting comment.

In fact, just last week, two local South Dakota carriers, Northern Valley Communications and Sancom, sent a letter to the FCC accusing AT&T of hypocrisy by complaining about Google's ability to block such calls.AT&T, which has the exclusive right to market Apple's i Phone in the U.S., which Google Voice will compete against, has argued that Google Voice should also have to connect expensive rural calls.After Congress and President Bill Clinton deregulated the phone industry with Telecommunications Act of 1996, rural areas came to receive their service primarily from two types of local carriers: an ILEC, for "incumbent local exchange carrier," the local phone companies that predated the Ma Bell breakup; or a CLEC, for "competitive local phone exchange," companies that emerged after the industry was deregulated.What these newlocal phone exchanges quickly discovered is that they could make a gobs of money by partnering with phone sex and adult chat companies to route the numbers through rural exchanges -- a practice known as "traffic pumping." The local exchanges then turn around and charge AT&Tmany of which are actually forwarded to sex call centers in Los Angeles and elsewhere.

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