Alltel Spinoff Windstream Sues Alltel Owner Verizon

Arkansas telco Windstream sued Verizon Wireless last week, accusing Verizon of overcharging it $7 million for calls connected through its network.

According to the complaint, Windstream is disputing the charges incurred when customers of other telcos call Alltel customers using Windstream’s networks, i.e., “transit traffic.” Those charges have been lumped in with what the complaint calls “legitimate traffic,” or calls directly from Windstream to Alltel subscribers.

“Since 2006, Windstream received monthly invoices from Alltel (the ‘Invoices’). The Invoices should contain billings solely for Legitimate Traffic,” the complaint says. Windstream says it has paid the invoices but is now seeking damages to recoup the $7 million it says it was overcharged.

What gives the lawsuit an Oedipal aspect is that Windstream is the landline phone company spun off from Alltel, a wireless company now owned by Verizon. (info from The Wall Street Journal)