OK, so now where getting somewhere in terms of an answer. So, I gather the real answer is -- it's NOT free. Someone is paying (albeit a small amount) somewhere. It's just too small a niche for the world's carries to make a deal about any revenue loss. And it is sort of a "loophole" because none of the worlds' carriers expect these small carriers would sell their services rebranded and internationally.
That is similar to, as mentioned in another thread, when T-Mobile USA did not have a billing program from 1998-2001 or 2 to charge the customers for international roaming, because, I guess, the amount of people roaming internationally, did not substantiate the capital outlay to properly track it. We all roamed worldwide for free, for years. That sadly ended.
Stuff like that always ends (or revises)