“A loophole in the Telecommunications Act of 1996, originally intended to help compensate rural carriers, allows the company to receive a few cents for every five minutes or so that a customer listens to the station. The exact amount depends on the carrier, but for the most part, it’s only a few cents. But multiply that by close to a million customers—listening for hours a day—and revenue starts pouring in. The loophole works when calls are routed through rural phone companies. Experts say changes in telecommunications technology have allowed rural carriers to turn this into a profit center by partnering with providers of services like free conference calling and radio.”

http://www.cnbc.com/id/100746807

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