Under a separate agreement, the two companies have entered into a multi- year, carrier services arrangement.
These two actions reinforce Frontier's new strategy as outlined by Chief Executive Officer Joseph P. Clayton on October 14. "Divesting non-core product lines and growing our carrier services business were two of the specific initiatives announced last week," reminded Clayton. "Today's announcement demonstrates our focus on these objectives and our commitment to moving quickly to restore positive financial performance for Frontier."
The portion of Frontier's prepaid business being sold to SMARTALK is comprised of those assets and accounts which best match SMARTALK's areas of expertise. This includes Frontier's retail card customer base and other related assets. The net proceeds from this sale will be used to phase down the remainder of Frontier's prepaid business.
"Frontier has been successful in securing prepaid accounts with Fortune 500 retail companies. But I believe we lack the retail savvy and critical mass to make this a core competency," Clayton explained. "With our principal focus on the business market, these retail card accounts will be better served by SMARTALK, a proven leader in the distribution of prepaid calling cards."
Clayton noted that Frontier will continue to offer its business customers prepaid calling cards, with support from SMARTALK, as part of its integrated telecommunications services portfolio.
SMARTALK Chairman and CEO Robert H. Lorsch added, "We are excited about the opportunity to serve Frontier's prepaid retailers and to work with these valuable customers to expand their business and transition them into prime SMARTALK accounts."
SMARTALK will utilize Frontier's network to carry the traffic from the business it is acquiring, in addition to a portion of its current traffic.
"The carrier or wholesale side of the equation is an excellent way for us to participate profitably in the growth of the prepaid business by leveraging one of our greatest assets -- the reliability and capacity of our new SONET fiber optic network," stated Clayton.
Frontier Corporation is the parent company whose long distance, local telephone and wireless communications subsidiaries provide a range of integrated services to customers. Frontier is a Standard & Poor's 500 company with annualized revenue approaching $2.5 billion. With sales locations nationwide, Frontier is the fifth largest long distance company in the United States.
Annette's winning entry was selected from hundreds of designs submitted by children at the Boys & Girls Club and depicts an ultimate day at the ball park. The inspiration for the design was when Annette attended a baseball game and saw a seven year-old boy, on his first trip to a baseball game, catch a foul ball. Annette and her mother will attend the World Series Wednesday night complements of MCI PrePaid.
Annette Santiago will be available for media interviews today, Oct. 21, from 3:00 to 5:00 p.m. ET, at the Boys & Girls Club of Cleveland's administrative offices, 3340 Trowbridge Avenue. Please contact Ranelle Huber, director of development, at 216-459-8777, if interested.
MCI PrePaid cards featuring the team logos of all Major League Baseball teams can be purchased on the Internet by visiting the MCI PrePaid store at http://www.mci.com or by calling 1-800-840-6726. MCI is the official telecommunications sponsor of Major League Baseball.
Good question, says BP, which joins competitors in the prepaid card game. Look for BP PrePay cards at participating BP branded locations and ProCare outlets beginning November 1, 1997. The PrePay cards, in denominations of $25, $50 and $100, are good for Food, Fuel & Fun. Limited edition holiday cards issued in amounts of $10 and $25, will >debut in time for holiday gift giving.
In the first phase of the roll out, BP PrePay cards must be presented to the BP station cashiers when making purchases. The second phase, scheduled to begin mid +98, will feature the added convenience of Pay-at-Pump.
With the new PrePay card, BP anticipates increased sales volumes by attracting new cash customers. This method of payment will provide a feeling of security to the card holder in case of road emergencies, when cash might not be readily available. It would also be a wonderful way for parents to monitor and control the motoring expenses of new drivers!
Submitted by: Tim Straight
Each card in this limited edition of 5,000 is individually numbered, with scratch-off protection of each unique PIN number. The Life Savers 85th Anniversary Phone Card is now available in ten unit denominations exclusively through the LifeSavers Candystand website. So point your browser to: http://www.candystand.com/store/index.htm and order yours today!!
Thanks for your interest, phonecards@nabisco.com
From: Dave Berbert
From: Eddie Willeford
From: Jim Silva
Until Next Week,
Alan
2) Direct e-mail. Send a message to: phoneline@cardmall.com
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