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There is an increasing knowledge about prepaid cards among the general public. Additionally, the internet is growing at an incredible rate. While the newsstands are not filled with phonecard magazines, there is a lot of information available to people on-line. The new U.S. telecommunications rules that charge companies who offer an 800 number over a payphone has had a smaller impact that I thought it might. While it is annoying that many companies are passing the charge on to phonecard users, I dont think the impact will destroy the prepaid market.
Network marketing companies such as STS and Destiny are history, with Amerivox a small shadow of its former self. While many praised these companies for bringing people into the prepaid marketplace, they probably did more damage than good. There are a lot (and I mean a LOT) of people left with STS cards that they paid too much for, and are not working. People who were buying and selling those cards at inflated prices at the special conventions were speculators, not collectors.
A group that I would consider to be an asset to the hobby are refunders. Phonecard collectors may not know what a refunder is, but rest assured that refunders definitely know about phonecards. Refunders are a group of people who go after rebates and free offers as a hobby, and as a way to save money. They tend to enter a lot of contests, too. With the proliferation of prepaid card offers, refunders have obtained a lot of cards, and many have become collectors. They are also a very nice group of people as a whole!
There is still a lot of discussion about a large phonecard show or series of shows, but still no consensus. A lot of dealers have been talking about attaching a phonecard section to an established numismatic show, such as the FUN or Long Beach shows. There is currently a phonecard presence at each of these shows, but there are generally a few phonecard dealers scattered among a lot of numismatic dealers. Ideally, a phonecard show would be great to go with the industry shows put on by Telecard World. It doesnt seem like that will ever happen, but to me it seems to make sense. It would be great promotion for the hobby as a whole, the phonecard industry as well as the collectibles segment.
Thankfully, Scoreboard appears to be history. Their stock closed at 9 cents a share on Friday, and they will probably not produce another phonecard product. There seems to be fewer products issued, and that is good. Too many products are too hard to keep up with! Hopefully, the trends over the past few months will continue into 1998.
Call Select will become a subsidiary of Beverly Glen Capital Corp., parent of Phonetime, Call Select President Fred Panel, a phone card industry innovator, will continue as vice-president with the Company.
"Fred Panet has been a pioneer in creating premium/incentive and loyalty programs for such outstanding companies as General Motors/AC Delco, Ford Motor, Amway and Warner-Lambert," said Wayne Silver, executive vice-president of Beverly Glen. "We look forward to his help in significantly expanding this fast growth category and adding on to his strong position in the grocery trade, which compliments Phonetime's existing business in that industry. " Call Select currently provides retail phone cards to Overwaitea Stores and IGA Freson Market Ltd.
Silver said that since entering the industry at its beginning in 1994, the company has issued some 300 card programs with more than fifteen million minutes of phone card time. Phonetime is one of the few companies in Canada with its own prepaid telephone switching platform and recently invested more than $250,000 in a new, state-of-the art high capacity switch manufactured by Voiceware Industries, West Palm Beach, Florida. Voiceware's switch provides Phonetime with a significant technological advantage in Canada, with T1 digital trunks connected directly to such telephone companies as Sprint Canada, A.T.&T. Canada and London Telecom.
"This expansion demonstrates the success of consumer prepaid phone cards, a major convenience for all Canadians," Silver commented. "Phonetime programs are now available in three of Canada's top ten retail chains. In addition to the Weston Group, Phonetime cards are available nation-wide in Business Depot/Staples and Costco/Price Club. In the near future, the company will be moving into prepaid cellular phone cards, and expanding its wholesale service business."
For further information, contact Wayne Silver
Tel: 905-629-3737
Fax: 905-629-1982
email: waynes@pproducts.com
In a far-reaching corporate partnership agreement -- one that may be unprecedented in professional sports team sponsorships -- U S WEST will become the official communications company of the Phoenix Suns through 2023. Although terms were not disclosed, Phoenix Suns President and CEO Jerry Colangelo suggested the deal was "unprecedented."
"This is easily the largest and most significant corporate partnership we have entered into in the team's history. To become involved in such a diverse manner with a top quality company like U S WEST is as flattering as it is promising," said Colangelo.
"This is an exciting new partnership with a world-class sports organization," said Sol Trujillo, President and CEO of U S WEST Communications. "By teaming with the Phoenix Suns, we will be joining forces on a number of initiatives that benefit the community, including broadcasting Suns games to our customers using our new state-of-the-art digital TV and online service. People in the Valley of the Sun and Arizona will see that not only is life better here, but basketball's better here too."
Partnership Brings the Best of Integrated Video and Telecommunications Technology
A key part of this multi-faceted sponsorship is total U S WEST exclusivity in residential and business communication services for the Suns. This exclusivity includes all Suns telecommunication business, directory services, long distance service, pay phone services, prepaid phone cards and long distance calling cards, Internet service, and, most significantly, all television services for Phoenix Suns games. The television and Internet provisions take effect in 2003.
Trujillo said that U S WEST's entry into digital TV and online service, including the provision of VDSL (Very-high-speed Digital Subscriber Line) access, puts U S WEST squarely into the entertainment industry with an opportunity to reach households and businesses with television just as they do now with telephone services. Phoenix is the first of numerous markets where U S WEST is seeking to partner with professional sports teams to provide digital TV and online service.
By the year 2000, the entire metropolitan Phoenix market will enjoy U S WEST TeleChoice(R) digital TV and online service. Ultimately, U S WEST will market this service around the region. Phoenix Suns fans can receive all 41 home games and all home playoff games with their basic U S WEST video package beginning in 2003.
U S WEST's sponsorship also brings a dramatically expanded marketing package, including more commercial spots on Suns broadcasts and enhanced signage in America West Arena.
U S WEST Pavilion to offer entertainment and retail facilities
U S WEST will be the sponsor for a new five-story pavilion adjoining the America West Arena.
The U S WEST Pavilion will add 130,000 square feet of entertainment, dining, meeting facilities, and office and retail space at the northeast corner of the Arena. One of the Pavilion levels will provide underground parking. The U S WEST Pavilion, which will open to the public in 2000, is an exciting addition to America West Arena and a great reason for Phoenicians to be part of the increasingly popular downtown area.
Phoenix Suns and U S WEST team to help community
The partnership will also include a comprehensive community involvement component, including U S WEST ties with eight current Suns community programs and the creation of a new program. Building on U S WEST's commitment to make life better for its customers, the Phoenix Suns and U S WEST will unite to provide educational programs for inner-city grade schools to help make students' lives better too.
Among the existing Phoenix Suns community programs which U S WEST will join are: "Team Up," Gorilla's "HOOPmarks" Reading Program, Phoenix Public Library Summer Reading Program, Suns Legends Summer Youth Basketball, Easter Seals Basketball Shootout, Phoenix Suns/Boys and Girls Club Basketball League, Suns "Nite" Hoops and the very popular Book-the-Gorilla program.
"U S WEST has been a terrific and long-time sponsor of the Phoenix Suns. Now, with their expanded role, they will have a preeminent position with our team," said Harvey Shank, vice president of marketing for the Suns. "Clearly, U S WEST understands the marketing advantages of partnering with a successful professional sports organization."
"Partnering with the Phoenix Suns makes a lot of sense for U S WEST and our combined efforts will be great for the Valley of the Sun," said Bill Stack, U S WEST's Arizona General Manager. "U S WEST customers will enjoy state-of-the-art integrated digital TV and online service, exciting Phoenix Suns basketball action, and many community benefits as a result of this partnership."
The convenience store company has teamed up with Ameritech to offer Pick Up & Go Cellular(R) Prepaid Cards for on-the-go 7-Eleven customers in the Chicago area.
"7-Eleven and Ameritech are providing consumers with hassle-free alternatives on prepaid telecommunications services," said Michael Baldwin, 7-Eleven stores' phone card product manager. "Joining forces with Ameritech to provide cellular calling without a contract to sign, a deposit or monthly bill is exactly the kind of convenient service our customers want from us. We already sell a large number of prepaid long-distance phone cards and that makes Ameritech's Pick Up & Go Cellular Cards a perfect product fit."
"Our customers tell us they like the ease and convenience of selecting our products and services near where they live, shop and work," said Jay Ellison, vice president, sales for Ameritech Cellular Services. "7-Eleven stores are conveniently located in community neighborhoods close to our customers' homes or offices so partnering with them is a natural fit."
7-Eleven and Ameritech have made it easy to obtain Pick Up & Go Cellular Prepaid Cards. There are no contracts to sign, no credit checks and no monthly bills for customers to worry about with the pay-as-you-go service. To get started with Ameritech's cellular service, customers can either purchase a new phone or bring in their own cellular phone to a local Ameritech Communication Center or authorized dealer (a $35 activation fee may apply). Once customers have activated their cellular service, they can purchase a Pick Up & Go Cellular Card at any of the participating 150 7-Eleven stores in the Chicago area for $30 or $50 worth of cellular calling.
Prepaid calling time is debited per minute for local and long distance calls and calls made when "roaming" outside the customer's local rate area. Per minute rates vary depending on the market. There are no other monthly fees to pay, so customers control what they want to spend for cellular service.
"Help Animals Every Time You Pick up the Phone!
Join Friskies Partners for Pets in support of Be Kind to Animals Week, May 3-9, 1998. Order your Friskies Special Edition Be Kind to Animals Phone Card. Friskies is donating 10% of its phonecard costs to the American Human Association to support animal protection programs."
The 20 minute phonecard ("It is an $8.00 value for only $3.99 and four UPCs from any Friskies pet food product") offer expires 8/31/98 or while supplies last.
From: Jim Silva
Until Next Time,
Alan
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