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Phonecards

June 15, 1996


Issue 37


Phonecards On-Line is written and distributed by Alan Cohen


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News and Views

Administrative Notes

Last week was a miserable computer week for me. My CompuServe files were corrupt, and I had to delete my mailboxes. Then, I found out I lost my nickname files for my internet account. This means that my mailing list disappeared. Luckily I back up my lists - My last backup was May 26 (This crashed on June 9) I was basically able to reconstruct the list - HOWEVER, if you asked to be removed, or if you had a multiple subscription, you are back again. I really apologize for this. Please send the request over again and I will accommodate.

You may notice that you are on a different list number. I've condensed the lists so they now contain 75 names. It will make mailing the list an easier task. Again, I apologize for the inconvenience for those who will be inconvenienced.

Grapevine Responds

As promised a few weeks ago, here is Grapevine's Jeff Waltcher

Dear Phonecard Industry Participants,

In late February I left HT Technologies and started Grapevine Telecards. I was joined by Edward Duniven early in March. Since our start-up, Grapevine has produced ten unique promotional phonecard editions available in part to collectors. We have moved into offices in downtown Sausalito (California) and opened a phonecard gallery store! We also recently established a new web site. You can find us at:

http://www.grapevinetel.com

Our business is growing rapidly-thanks to the dealers, collectors and promotional customers who have purchased our cards. We have also gotten a lot of help from leading industry suppliers. Thanks also to the publications who have taken an interest in our efforts, including Moneycard Collector, the Phonecard Market Report, Telecard World, Collector’s Advantage and Intelecard News.

Almost since the day we opened our doors, the former employer of both Ed and myself (HT Technologies) has been making a series of outrageous allegations and claims against us. It and its officers have also been repeating and expanding those claims directly to many individuals in the telecard industry. Numerous people have asked us to respond publicly. I would like to take this opportunity to make the following statement about this situation:

First, the allegations are not true, and we have denied them in court. In addition to responding to their lawsuit, we have filed our own action against HT (based on things it’s doing aimed at putting us out of business).

As part of its suit, HT had asked the court to issue an injunction prohibiting us from operating our business. In its papers, it claimed that we stole its property, including confidential business information, and were using this information to illegally solicit business from its customers. It asked the court to enjoin us from soliciting business from its customers and potential customers. It even asked the court to prohibit us from competing at all in the phonecard business for two years.

The judge heard all the evidence, and then DENIED ALL of HT’s requests. He said HT hadn’t convinced him that we were doing anything illegal or improper. The judge also said HT hadn’t shown that it was likely to prevail on its claims in a full-blown trial. The court therefore refused to enjoin us from doing anything, including going about our business in the way we have been doing.

We are happy to be putting this legal business behind us and focusing on why we’re here-to make and sell great phonecards. We have some hot new issues you are sure to be interested in, so give us a call. You can reach Ed or I at:

Grapevine Telecards
http://www.grapevinetel.com
info@grapevinetel.com
or
grapetel@aol.com
751 Bridgeway
Sausalito, CA 94965
415-331-1298 voice
415-331-9259 fax

Sincerely,
Jeff Waltcher
President

HT News Part I

According to Dan Tudor of HT Technologies, they are going back to court in a few weeks, so it looks like this is not over yet. If any news comes my way, I'll print it here.

HT News Part II

It appears that HT has more to deal with than the lawsuit against Grapevine. There is a two page article in Moneycard Collector this month (July 1996) about some test on HT cards that did not work. It appears that the cards were not activated when shipped. LDDS has activated all of the cards. While it is disturbing that a card is not activated, this has happened to me quite a few times with many companies. I've had problems with various phone cards, from Amerivox to GTI. The key is for the company to have an (800) customer service number on the back and get that card activated.

HT Claims that 11 cards had inactive pins. With over 4.6 million cards issued, that is a ratio of .0002391%. They also stated that the cards sent to Moneycard were for samples only, and not intended to have an active pin.

Look for HT's reply in the letter to the editor section next month in Moneycard Collector.

National Coming Soon

The 17th Annual National Sportscard Convention will be held this June 27- 30 in Anaheim, California. Like last year, a phonecard pavilion will be at the show. If you live in the Southern California area, you should consider visiting the show. Besides the phonecard pavilion (where sample cards may be available) you will probably see a larger phonecard presence at the show. Granted that you'll mostly see older sportscards and newer sportscards, it can't hurt to try. I'll be attending the show, and will post a full report upon my return. I'll also be checking out a casino chip and collectibles show in Las Vegas the weekend before. Although I don't expect to find any phonecards there, I hope to be surprised. I have been to small coin shows and found phonecards there.

National Edition Classic

B&B Phonecards (who will be holding a phonecard collectibles show in Anaheim this August) is producing with Classic a limited edition product that is the first ever wax pack phone card package with instant redeemable prizes. There will only be 500 cases produced (12 boxes per case, 18 packs per box) What's interesting about this product is that

1) All PINS will be exposed - You can use the phone time without worrying about the card being not mint. Since Classic Cards have expiration dates, this will let people use their cards. As many of you know, I have been very critical of Classic in the past. I applaud this move, and I hope it encourages people to use the cards. My complaint against classic was that they were producing a product that did not encourage use.

2) Prizes must be redeemed at the show. However, if you can not attend, you can mail to B&B within 30 days of the show. What will this do to the value of the product after the 30 days, when the big prizes can not be redeemed?

3) Each box has at least $117 worth of Classic Phone Time (This probably means about 2 hours) and costs only $80 if you purchase from B&B. You can call them at (800) 777-7610 for more information

McDonald's Assets

Just an interesting side note to this upcoming product (which looks really neat, in my opinion) you can win free food - Randomly inserted in packs will be free food coupons at McDonalds. Interesting...

That's it for now. Until Next week, Happy Collecting,

Alan

Distribution

Phonecards On-Line is written and distributed by Alan Cohen. It is a weekly newsletter devoted to phonecards - Current news, viewpoints, and reviews of new issues. It is distributed free of charge, and available two ways.

1) On-Line on the World Wide Web. The address is: http://www.cardmall.com

2) Direct e-mail. Send a message to: phoneline@cardmall.com

If you wish to be removed from this mailing list, or find yourself with two subscriptions (It does happen), please reply to the ORIGINAL message that was sent to you - This will assist me in removing your name