Phonecards On-Line - Written by Alan H. Cohen

March 2, 1997


Issue 69


Phonecards On-Line is written and distributed by Alan Cohen


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News and Views

Administrative Notes

There may not be a newsletter next week (March 9) I’ll be taking a cruise to Mexico, so my publishing schedule depends on how busy I am over here. I’m sure there will be a story the following week on Mexican phonecards though!

The Card Mall Discussion Forum Thanks to The Discount Long Distance Digest (http://www.thedigest.com/) for hosting the Card Mall Discussion Forum. The Discussion Forum can be found at: http://www.thedigest.com/wwwboard/cardmall/ - Be sure to visit and post messages about collecting. I'll try to answer if appropriate.

IPC Update

For those of you who don’t know what IPC is, it stands for International Phonecard Collectors. This organization was founded almost a year ago by a group of collectors and dealers in Albany, New York, who felt that our interests were not represented by any existing organization. It’s been a slow year of growth, but momentum is starting to pick up. This week, the first of hopefully many print newsletters will be sent to members. It is the intention of the board of directors of this group to publish the newsletter at least on a quarterly basis. Additionally, here are some more updates:

  1. Membership for charter members will be extended free of charge through December of 1997.
  2. IPC Members get free admission into more shows. The next "large" show is the Intele-Card News show, to be held this April in Chicago. IPC members get in free of charge (A $15 value, which is the cost of membership)
  3. There are still IPC First Edition phonecards. If you are not a member, consider joining and have a first edition phonecard in your collection.
  4. Web Site - If you haven’t checked in a while, visit it at http://www.cardmall.com/ipc - It is still under construction, but we hope this site will become a focal point for IPC members who have internet access
If you are interested in joining IPC ($15 for US members, more for those outside the US) e-mail Jim Wertheimer at 74762.50@compuserve.com. Those who sign up now will get the first edition newsletter mailed to them.

Orlando Show Review

Thanks to Lenny Rapp for writing this. He can be reached at: Lenny@CashCards.com

Telecard East was held in Orlando, Florida on February 27-28, 1997 and was quite a bit smaller than the shows of Atlanta and New York. There were approximately 50 booths, most of them manufacturers of vending machines, switch companies, utility card issuers and other suppliers. None of the dealers that have become regulars on this circuit participated, so the card availability for collectors was almost non existent. A few of the companies sold show cards, and some featured their own cards, but otherwise there was nothing for the collector.

As usual, the show cards were not freely being given out. It was, however, a little easier to get them probably because not a lot of collectors were in attendance. Approximately 15 different cards competed for the title of best show card. Most of the companies kept their cards under the counter and gave them to people who made a point to ask for them. I did talk to a dealer/collector who said that he had no problem getting cards.

Most of the cards were in the 500 mintage range and were very attractive, offering different variations of the show theme and the show location. One unusual aspect of many of the cards is that the show information appeared on the back instead of the front of the card.

A full review of the cards and their pictures will appear in an article I am writing for a future issue of Telecard Times magazine.

The next major phone card show is in Chicago on April 2-4, 1997.

Destiny in the News

OAKLAND, Calif. (AP) - Law enforcement officials have accused a national phone card business of running a pyramid scheme that duped thousands of investors.

Destiny Telecomm Inc. promised impossible riches to its investors, state and local prosecutors charged in a $20 million lawsuit against the company.

The 18-month old company, based in Oakland, sells long-distance pre-paid phone cards and has distributors nationwide. Its president, Randy Jeffers, denied the allegations.

Albert Shelden, the state's deputy attorney general, said law enforcement officials believe Destiny is operating ``an illegal endless-chain scheme.''

He said a civil complaint alleges Destiny's marketing employees are compensated according to their ability to get new employees to buy their way into the company, not according to sales of products or services.

He said attorneys general in North Carolina and Michigan have filed similar complaints against Destiny and other states are also investigating the company.

The California complaint alleges the company is violating the state's laws against misleading advertising and unfair competition. Investigators conducted a search of Destiny's Oakland headquarters Thursday.

A day earlier, Alameda County Superior Court Judge Sandra Margulies issued a temporary restraining order authorizing the search. The order also froze Destiny's assets.

United Air-Lines

I found some new ads in the UAL magazine for phone cards. One is for Mileage Plus on UAL. You also get 15 minutes of free long distance calls just to try it. Call 1-800 PRE-PAID. AD says to earn 500 mileage plus miles with your $50 purchase AND each $50 recharge. $50 is equal to 142 U.S. long distance minutes, excluding Alaska.

From: Paula Clark

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.

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

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