It agreed to pay a fine of $1.4 million and to lower its rates for interstate calls for one year by $35.5 million.
He also said the regulations would cover only interstate calls and would not limit telemarketing within a state.
It asserted that these costs were then passed along to customers making interstate calls, who pay the company access charges for connections to long-distance carriers.
But such rules do not have any effect on interstate calls, so determined companies can stay in business simply by moving to states with few or no restrictions.
He refused to release the tape, citing the illegality of his taping an interstate call.
The losers will be small businesses that make few interstate calls.
Even if the number was traced through four interstate call forwards and the original overseas link, finding him was an entirely different matter.
A bill that went nowhere in Congress this year would have mandated fair rates for interstate calls made from prison.
If customers first dial a toll-free number, they are charged a 95-cent setup fee and 45 cents a minute for interstate calls.
For example, individuals who attack telephone switches may disrupt interstate and foreign calls.