Phonecards On-Line - Written by Alan H. Cohen

February 9, 1997


Issue 66


Phonecards On-Line is written and distributed by Alan Cohen


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News and Views

NYNEX Disconnects

The following is a press release from NYNEX:

NEW YORK--(BUSINESS WIRE)--Feb. 7, 1997--NYNEX announced today (2/7) that it will remove its bright yellow Change Card pay phones -- which only accept a special, prepaid telephone card -- and replace the majority of them with a state-of-the-art version of the traditional, coin-operated pay phone.

Most of the 800 Change Card phones are situated in Manhattan on city sidewalks. The others are at the Staten Island Ferry Terminal and at several other indoor and outdoor locations. NYNEX will begin the replacement program next week.

"Although we conducted a variety of marketing and advertising campaigns to inform the public about the NYNEX Change Card(R) phones and to encourage their use, these phones just never caught on with our customers," said Brian Price, director of marketing and sales for NYNEX's Public Communications Division.

"New Yorkers are used to carrying coins with them for parking meters, the laundromat and bus fare," he said. "And we learned that when it comes to making a local call from a NYNEX pay phone, people prefer to use coins rather than the specialized Change Card product, which only worked on the special yellow phones."

NYNEX will replace the Change Card phones that are on city sidewalks with a new type of coin-operated phone that looks and works like the traditional, coin-operated phone but is much more technologically advanced. The new phones, known as "smart sets," contain a computer chip that automatically sends out a signal to a central NYNEX location when the phone is not working or needs servicing.

In addition to the Change Card phones, NYNEX will replace all of its other city sidewalk pay phones with "smart sets" this year.

"By knowing automatically when there is a problem with one of our smart sets, we can dispatch a technician right away and get the phone back in service more quickly," Price said. "This will enable us to provide better service to the public."

The balance of the Change Card phones will be replaced by the traditional, coin-operated pay phones.

NYNEX will provide full refunds to consumers who have the NYNEX Change Cards. The cards, about the size of a credit card, were sold in denominations of $5, $10 and $20.

Holders of valid Change Cards in good condition may obtain refunds for the unused portion of the cards by going in person to any one of five refund vendors in Manhattan, Brooklyn, the Bronx and Staten Island. NYNEX will also maintain a toll-free number -- 1-800-545-EASY -- for customers who wish to obtain refunds by mail or who have questions about the refunds or other aspects of the Change Card phones.

NYNEX will inform customers about the refunds and the toll-free number by posting signs at the major locations for Change Card phones and through legal notices in daily newspapers in New York City.

NYNEX installed the Change Card phones on a trial basis in 1991 and then expanded the program in 1994.

Although the Change Card program is being discontinued, NYNEX remains committed to its other telephone card products. They are the NYNEX Calling Card (1-800-54-NYNEX), which customers use and then receive the itemized charges on their monthly telephone bill, and the NYNEX prepaid calling card, which customers use by calling another 800 number. Both cards can be used at any telephone for local as well as long distance calls.

The Fall-out

This announcement took me by surprise. NYNEX changed its phonecard technology, moving from a stripe card to the thin magnetic variety. Once again, NYNEX cards will not be usable. However, unlike the last time, they have abandoned any type of stored value technology. Their remote access (800 number) cards will still be available.

My take on this - NYNEX has really not done a good job marketing their prepaid cards. When I was living in New York, the closest phone where I could use their card was over 200 miles away. They stated that they would expand the program, but they never did. How could people get used to using the cards when there are very few phones to use them in? To look at a company that got it right, one has to look no further than Bell Canada. In about a year, they successfully converted most of the phones in Ontario and Quebec to accept chip cards. If the phones accept the cards, people will use them.

What remains to be seen is what will happen with the remaining cards. NYNEX has traditionally destroyed their stock of unsold cards. Let’s hope that this will happen again. If the remaining cards make it to the public marketplace, the cards will drop dramatically. Considering I am a collector of NYNEX cards, this whole mess bothers me. I am strongly considering turning in any card over $5 face value for a refund. Considering that in the near future, NYNEX itself will disappear, (There will be a merger with Bell Atlantic, which last year dropped its prepaid program) I expect interest in these cards to decrease.

HT Technologies Files for Chapter 11 Bankruptcy Protection

This information came in right before this was written. On January 31, HT filed for Chapter 11 protection. More news on this story will appear when it comes in. HT cards are still working, for those who are interested.

KVI/Car-Toys "Toys for Kids" Phonecard

KVI/Car-Toys Toys for Kids Phonecard

The card was issued as a co-promotion by No. 1 Seattle radio station Hot Talk 570 KVI and Puget Sound cellphone and car stereo retailer Car-Toys to be given away as part of a benefit for Seattle’s Children’s Orthopedic Hospital. The card was issued by Gazelle Telecard, with long distance service provided by Cable & Wireless. There were 1510 production cards made, as well as 90 live test cards. The expiration date is May, 1997, and each card carries 5 domestic minutes. For more information on this card, please contact Vince Porteous at (206) 935-3576. He can also be reached via e-mail at metalcore@aol.com, or by postal mail at PO Box 24783. Seattle, WA, 98124. A picture of this card is available at the POL Web Site.

7-11 Basketball Phone Cards

DALLAS, Feb. 3 /PRNewswire/ -- 7-Eleven is racking up the rebounds on pre-paid, long-distance phone card sales with the release of its new basketball Collector Series Phone Cards beginning in February. The basketball collector series will feature NBA stars Larry Johnson, Jerry Stackhouse, Reggie Miller and nine other basketball greats.

Each of the 12 new collector edition phone cards features a different NBA player on a 15-minute pre-paid, long-distance phone card for the same price as 7-Eleven's regular 15-minute phone card - $5.99, or just 40 cents a minute. Four cards will be released each month in February, March and April at participating 7-Eleven stores across the country.

Television advertising announcing the new series will feature the 12 cards and will air beginning in February on NBC during basketball programming.

"Our baseball and football collector cards have been a tremendous success, and basketball should also be a big hit with collectors and fans," says Chip Sones, 7-Eleven category manager for phone cards.

Since 7-Eleven introduced its phone cards nationally in 1995, the company has become the largest retailer of pre-paid, long-distance phone cards. In the past two years, the convenience-store chain has sold 250 million minutes of phone card time. That is 475 years, or about seven lifetimes of non-stop talking.

February releases include: Jerry Stackhouse, guard/forward, Philadelphia 76ers; Gary Payton, guard, Seattle SuperSonics; Reggie Miller, guard, Indiana Pacers; Joe Smith, forward, Golden State Warriors.

March releases include: Shawn Kemp, forward, Seattle SuperSonics; David Robinson, center, San Antonio Spurs; Larry Johnson, forward, New York Knicks; Karl Malone, forward, Utah Jazz.

April releases include: Clyde Drexler, guard, Houston Rockets; Chris Webber, forward, Washington Bullets; Jason Kidd, guard, Phoenix Suns; Mitch Richmond, guard, Sacramento Kings.

The cards are being produced for 7-Eleven by Standard Register, and AT&T will be the service provider.

Richard Petty Phone Card

I noticed the following offer on the back of a cheese cracker box:

Richard Petty Limited Edition Phone card. $8.95 plus $2.95 S&H. Call 888-437-2232.

The card is 20 units and numbered although the mintage is not specified. There is a picture of Richard Petty next to his car and a "Lance" racing logo on the upper left hand corner. No coupon or UPCs required.

From: Scott Nemeroff

Lots of Free Cards

Sunday newspaper had some Ads for free phonecards.

In addition Target has a free 10 minute Zenith TC with the purchase of a Zenith universal remote control for a TV. The card is inside the packaging of the remote. The cost was about $12 on sale.

From: Jeff Whisler

That’s all for this 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.

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