Picture
Phonecards

November 2, 1996


Issue 54


Phonecards On-Line is written and distributed by Alan Cohen


Return to POL Index

News and Views

The Summer of ’96

What happened to the summer of 1996? As the year began, 1996 seemed like such a promising year for collectors. We went from explaining what phonecards were to why we collect them (a good change, it is a lot easier to explain why we collect when people know what we collect) A lot of big events were supposed to and did happen this year. They included:

  1. The Olympics
  2. The Elections
  3. The Post Office Selling Phone Cards
  4. Baby Bells going out of Test Mode
  5. SVC’s
Well, all of these things perhaps with the exception of Baby Bell’s were disappointing. The Olympics were going to be tougher than I thought. Since Visa was the official "card" of the Olympics, this meant that it would be tricky to produce phonecards. AT&T had the Prepaid Phone Calls. I have seen a few other cards, but I have not even seen or heard of many foreign cards. I’m sure many were produced, they just have not been actively available here. This is surprising, since rec.collecting.phonecards is an international newsgroup with an international audience. As reported last week, the AT&T jumbos have been dumped on the market, so those who did pay to collect them now find themselves with a card that is literally worth a buck!

In my mind, the elections have to be the biggest disappointment. I thought it would be a perfect medium to advertise a candidate or issue. Imagine, every time making a phone call, hearing the candidate’s voice and reminding you to vote for them on election day. I expected this to be available at the National Level, but also expected some local participation. Granted phone time is not cheap, but it could have even been a paper card with five minutes of phone time. I’ve not seen a single one of these cards anywhere! Maybe in 1998, but not this year.

The Post Office selling phonecards was greeted by an enthusiastic response from collectors. Many months after, I’ve not seen one card on the market (outside of the post office) for sale, used or new. While many thought this would get people to use and collect phonecards, I think it failed in its efforts. One problem was that the per minute cost was too expensive for the low denomination cards. The only sort-of reasonable rate was on the $100 card, but not many casual users are going to plunk down $100 for a phonecard. I haven’t, and won’t. The general public (non-collectors) are actually quite smart in determining what is a good value and what is not. I learned this by frequenting Spencer Gifts, where the 25 cents per minute GTI cards sold very well, and the higher priced Sprint Cards did not sell at all.

Baby Bells have made an impact. Same with the Big Three (AT&T, MCI and Sprint) all are doing good jobs of marketing cards to the mass audiences. The confusion that is the telecommunications act may actually benefit prepaid card users. News that Baby Bells will not be allowing AT&T and other charge cards may end up with people using the prepaid variety to escape that mess.

SVC’s are an interesting topic. They swiftly descended upon us over the summer, things seem to be quieter now. I think they do have a bright future, but for now, they are simply not viable. Two words will describe why: Expiration Date. Cash does not expire. SVC’s do. When that discrepancy disappears, they will be more viable. People are used to paying electronically and with cards, so switching to SVC’s will happen.

First International Phonecard Expo in Greece

PRESS RELEASE

1st International Phonecard Fair in Greece

In 1992 the Hellenic Telecommunications Organization (OTE) installed in Greece the public card phones and introduced the first Greek phonecard. During these four years the phonecard became a familiar object of daily use and found its place into the wallets of a vast majority of the Greek public. At the same time the phonecard became - apart from an object of daily use - a collector's item as well, attracting quite a few thousands of Greek collectors, a number that is steadily growing.

1996 marks the 20th anniversary of the birth of the phonecard in the world (Italy 1976) and the 4th anniversary of the introduction of the phonecard in Greece. To mark these two occasions, the 1st International Phonecard Fair is being organized in Greece, under the title "Card Collect".

Many Greek and European professionals from the phonecard industry will participate in the Fair, such as phonecard collectors' shops, dealers, international magazines as well as some Telephone Companies ( such as AmeriVox). Private collectors will also participate in the Fair.

In more than 50 stands the visitor will have the chance to see an impressive variety of phonecards from Greece and all over the world. Furthermore, there will be a whole range of items dealing with the phonecard collecting hobby, such as albums, phonecard catalogues, books, magazines and other related accessories. All the above material will be on sale during the Fair.

Other items of interest during the Fair, will be stands with informative material concerning various aspects of the phonecard (phonecard history, production methods etc.). Furthermore each visitor will be eligible to participate in a prize draw, with a chance to win phonecards and other related materials.

It is worth mentioning that two special "limited edition" cards will be issued on the occasion of the Fair. One from OTE (12.500) and another one from the USA company AmeriVox (1500). The two cards will be on sale only during the Fair. The Fair will be held with the cooperation of the AmeriVox Hellas Co.

The "Card Collect" Fair will be held on the 9th and 10th of November 1996. The venue will be the "Makedonia Palace Hotel" in the city of Thessaloniki.

For more information please contact Mr. Marios Koulaouzidis, Tel/Fax: + 30 31 951780, or write to him at the address: 6 Himarras str., GR-54643 Thessaloniki, Greece.

STS in the news

HARRISBURG, Pa., Oct. 30 /PRNewswire/ -- A Tennessee-based company involved in multi-level marketing of prepaid telephone calling cards will change its business practices under an agreement with the Office of Attorney General's Bureau of Consumer Protection.

Pennsylvania Attorney General Tom Corbett said an "assurance of voluntary compliance" filed today in Commonwealth Court also requires Strategic Telecom Systems Inc. (STS) of Knoxville to pay the state $15,000 in costs of investigation.

"Many people view multi-level marketing ventures as an opportunity to get rich quick," Corbett said. "Those people often are disappointed in the results after they've made a substantial investment. Among other things, this agreement ensures that STS will not mislead consumers about their earning potential as an STS marketing program participant."

Corbett said provisions of the assurance:

The assurance requires STS to provide a refund of at least 90 percent for any unused STS products or sales aids returned by participants who drop out of the program. It also requires STS to write to all program participants in Pennsylvania to inform them of the terms of the agreement.

STS is to report to the Bureau of Consumer Protection on a monthly basis for a one-year period regarding its compliance with the agreement.

The assurance was negotiated by Deputy Attorney General Marcia L. Telek DePaula of the bureau's Erie office. It was signed for STS by its president, A.R. Catinella.

Corbett noted that the signing of an assurance is not an admission of wrongdoing.

Visa Cash Stats

From the launch of Visa Cash in Atlanta on 5/15 through 5/31, there were 23,040 transactions involving Visa Cash with a total dollar volume of $65,570. From 6/1 through 6/30, 44,604 transactions were handled with a total dollar volume of $146,051. From 7/1 through 7/24, 98,961 transactions were handled with a total dollar volume of $372,622 (note that the Olympics started 7/19 and more than half of the July volume listed occurred during the 7/19 through 7/24 period)

From: Jim Silva

MCI/Wal-Mart Agreement

From a Press Release

Wal-Mart Stores, Inc., has introduced a complete line of co-branded prepaid calling cards from MCI and America's largest retailer . As part of a major sales and distribution agreement announced today, MCI will provide a range of services for MCI/Wal-Mart PrePaid Phonecards that will be sold in Wal-Mart stores across the U.S.

Under the multi-million dollar agreement, MCI is supplying Wal-Mart Stores with prepaid calling cards to be sold in more than 2,200 locations nationwide. As part of the agreement, MCI will provide a complete array of advanced network services including long distance transmission; 24-hour a day, 7 day-a-week multi-lingual customer service, card validation and control systems, interactive platform support and development, consulting and program management.

Office Depot - Canada

Phonetime has produced a number of cards for OFFICE DEPOT and OFFICE PLACE (they operate under both banners in Canada)

The first is a 10 minute card that is given as a door crasher to the first 500 people into each new store opening. They either have the OFFICE DEPOT of PLACE Logo on the front demanding on the location. We've produced 2,500 to date. The program is ongoing

The latest program is a dual logo OFFICE DEPOT/PLACE with BROTHER on the same card. It is a 15 minute card and given away with each FAX purchase in the store from OCT to DEC.

From: Wayne Silver

MCI ID4

According to John Grillo, MCI now has the third and fourth ID4 (Independence Day the Movie) cards available. Call 1 800-840-6726.

Intelecard News now on the web

Intelecard News, and industry magazine on phonecards now has a web site. You can visit them at:

http://www.intelecard.com

GTE Offer to Customers

I received information in the mail today from GTE that stated that they would send me a free prepaid phonecard with 3 hours of long distance as long as I remain a GTE Cellular User in good standing through April 30, 1997. The cards will be mailed after April 30, 1997.

From: J. Arnold

AT&T Contest

AT&T is giving away a 50 unit prepaid card at it’s web site. The exact address is:

http://www.att.com/nsd/ehs/GIVEAWAY/

Phonecard Offer

In today’s Sunday supplement to my paper was an offer for a free phone card from "Sweet Sue Chicken and Dumplings". For 3 15 oz. POP's u get a 10 min card and for 3 - 24 oz. POP's u get a 15 min card.

From: David Degelman

Until Next Week,

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 most recent message that was sent to you WITHOUT changing the subject line! - This will assist me in removing your name