Phonecards On-Line - Published by Alan H. Cohen

November 29, 1998


Issue 151


Phonecards On-Line is Published by Alan Cohen


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In This Issue:

Check out the latest phonecard auctions on Ebay. Visit Ebay at: http://www.cardmall.com/ebay

Advertisement: Welcome to our little section of POL. Our name is Eyer's World. We offer a very comprehensive US and Foreign PriceList, and we have issued 22 pricelists so far. We plan to issue over 100 of them, to overtake the 111 we have issued in the foreign coin and foreign banknote fields since 1970. We'd like to send you a copy of our latest: Telecard PriceList 22. Send name and postal address to seyer@midwest.net. Add a short list of areas you are interested in; we will return a printout of available cards. I look forward to meeting you. Steve http://www.cardmall.com/eyer

NEWS / COMMENTARIES

3rd Annual wddpccg Meeting Notes

By: Del Deligianis

The meeting celebrating the 3rd annual meeting of the Washington DC Phone Card Association saw three charter members, a variety of "regulars" and one new fellow.

Most of us were ready and anxious to get together and discuss phonecards and money cards. The meeting was a resounding success. Special thanks go out to those who made contributions to our door prizes. Thanks to Art Becker of the Telephone and Debit Card Journal, Lenny Rapp of Phone Card Connection, Bruce Harmon of Acme Telecards and Tom Williams of MoneyCard Collector magazine. Thanks too to the members who soliciated these prizes for this historic meeting.

Let's start with who got what--Richard Brook was the lucky one to go first. He chose the contribution of charter member and mentor Art Becker. Richard went home with 4 VISA Cash cards --HQ Olympic there in his catalog numbers UV-P10-P13. These used cards had no trace of any use by Warren the Wonder Dog, our mascot.

Tom Zelinski and new member, Ashok Nalhotra received MoneyCard Catalogs courtesy of MoneyCard Collector magazine. Chuck Cornelius and I won MoneyCard Collector t shirts. I promise to wear mine at the fourth anniversary meeting.

Coral Knehans and June Lee won nice packages of cards donated by Lenny Rapp. George Samuelson and Susan Zelinski won a plethora or phone cards given to the group by Bruce Harmon. Look for Bruce's auction to help Terry W and his daughter enjoy the holidays. Sorry we missed Maria, Kendra, Bernard, Brian, Fred, Lowell, Rob, Howard, Ron, Ulf, Jobst and any others I may have missed missing. Our new member, Ashok Nalhotra, is already a veteran credit card collector. Next meeting -- Wednesday, January 13th -- Pentagon City Mall Food Court at about 7:00pm.

Intelecard News Expo Announcement

The Intele-CardNews Expo '99: The New Millennium of Prepaid & Smart Cards is scheduled for January 13-15, 1999 at the Fontainebleau Hilton Resort & Spa in Miami Beach, Florida.

Please call the Fontainebleau Hilton directly at 305-538-2000 to make your hotel reservation and receive the discounted convention rate of only $159 per night. When making your reservation, please identify yourself as an attendee of the Intele-CardNews Expo.

If you have any questions or concerns, please call Lisa Brown at 281-298-1431 extension 114.

PRESS RELEASES

Bell Atlantic Prepaid Calling Card Hits the Great White Way

NEW YORK, Nov. 25 /PRNewswire/ -- There's no two ways about it -- Bell Atlantic's promotion that offers a discount on the Broadway smash hit Jekyll & Hyde is a great deal.

http://www.newscom.com/cgi-bin/prnh/19981125/NYW018

Bell Atlantic customers who purchase commemorative Bell Atlantic $20 Jekyll & Hyde Prepaid Calling Cards will receive a $35-discount coupon for regular-priced tickets to the suspenseful Broadway show. Theater-goers may then use the discount coupon when purchasing or ordering tickets for the show.

``The Bell Atlantic Prepaid Calling Card is a great tool for people on the go,'' said Andrew Robbins, Bell Atlantic product manager for Prepaid Calling Cards. ``Customers can use it in many ways -- when traveling, to help their children stay in touch, or when they don't have the change for a call. The Jekyll & Hyde cards and the discount to the show are sure to be a big hit.''

Residential customers in the New York metropolitan area, New Jersey and Delaware will receive information about the limited-edition Jekyll & Hyde card and the special promotion in their November phone bills.

Bell Atlantic Prepaid Calling Cards are ideal for calling anywhere in the United States, and internationally. The retail cards feature a low 15-cent per minute rate and a 45-cent per-call fee. They are available in denominations from $5 to $50 at convenience stores and other locations, or by calling 1-800-696-3990.

GTS Announces Third Quarter Results, Reduction in Overhead and Restructuring

MARLTON, N.J.--(BUSINESS WIRE)--Nov. 24, 1998--Global Telecommunication Solutions, Inc. (OTC BB: GTST, GTSTW)(``GTS'' or the ``Company''), a leading provider of prepaid telecommunication services, Tuesday announced that it has taken significant steps to reduce operating expenses in future periods.

GTS also announced its third quarter and nine months operating results, including a one-time restructuring charge.

During the third quarter, the Company took the following actions to reduce operating expenses during future periods:

(1) The Company consolidated its operations into a new facility. As a part of the consolidation, the Company is closing its Philadelphia, Pa., New York, N.Y., Moorestown, N.J., Jersey City, N.J. and Miami Fl. offices. This consolidation will result in annualized savings of approximately $350,000.

(2) The Company has reduced its senior management team from six to three executives. The remaining three senior executives have voluntarily reduced their salaries by approximately 30%. Combined, these two initiatives have reduced executive compensation from $980,000 per year to $325,000 per year resulting in annualized savings of $655,000.

(3) The Company has reduced its workforce by 29 employees which will provide annualized savings of approximately $1 million.

Net sales for the quarter ended September 30, 1998 were $9,359,063 compared to $5,412,586 for the comparable 1997 period, a 73% year-to-year increase. The Company's net loss for the third quarter was $4,497,691 or $0.75 per share, compared to $2,158,783, or $0.47 per share for the same period during 1997. The Company's 1998 third quarter loss includes a one-time re-structuring charge of $891,436. The Company's operating cash flow deficit (EBIDA) for the third quarter was $2,145,360 after deducting interest expense and non-cash financing costs of $947,822, depreciation and amortization expense of $513,073 and the one-time re-structuring charge of $891,436.

Telekom Malaysia Berhad Selects Ascend for Nationwide Prepaid Calling Card System

ALAMEDA, Calif.--(BUSINESS WIRE)--Nov. 24, 1998-- Ascend Communications, Inc. (Nasdaq:ASND - news), a leader in wide area networking (WAN) and Intelligent Networking (IN) solutions for providers and users of the next-generation public network, today announced that Telekom Malaysia Berhad (TMB), the leading telecommunications service provider in Malaysia, has adopted the Ascend Signaling Platform, a fault-tolerant, central-office compliant computing platform, for the deployment of its nationwide prepaid calling card services.

Global Interactive Technology Pte Ltd, an application partner of Ascend, provides the prepaid calling card application. The complete system will be installed and maintained by Ascend's distributor in Malaysia, Pernec Technologies SDN BHD.

``Ascend has teamed with Global Interactive Technology to deliver reliable enhanced services to telecommunications operators around the world,'' noted Dr. Mohd Khir Harun, Senior Vice President, Major Business & Government, Telekom Malaysia Berhad.

Pepsi ONE and AT&T Join Forces with AAFES to 'Remember the Troops'

PURCHASE, N.Y., Nov. 25 /PRNewswire/ -- Pepsi ONE, AT&T and the Army Air Force Exchange Service (AAFES) have teamed up to sweeten the holidays for U.S. soldiers stationed in Bosnia with a new outreach program called ``Remember the Troops.''

Starting this week, AAFES exchanges in Bosnia will be offering U.S. soldiers the opportunity to sample Pepsi's new low-calorie cola -- Pepsi ONE -- and enter a drawing to win one of five trips home to the U.S. or one of one-thousand $10 AT&T Global Prepaid Cards9 to call loved ones during the holidays. AAFES personnel will conduct the drawings in early December.

``The Remember the Troops program provides us the perfect opportunity to thank the thousands of soldiers who have been stationed in Bosnia for the last three years,'' said Steven Fund, director of marketing, Pepsi ONE, Pepsi-Cola Company. ``We're proud to align ourselves with AAFES and AT&T and give the brave men and women on this important mission a taste of home... especially during the holiday season.''

``AAFES has been serving the troops in Bosnia since day one of this operation, conducting our traditional mission of supporting the servicemen and women there with services and merchandise,'' said AAFES-Europe Commander Col. John B. Smith. ``But it's great to be able to offer them extra perks like the Pepsi ONE initiative -- I think it will generate a lot of excitement.''

Pepsi-Cola Company has a history of providing assistance for the men and women of the U.S. armed forces. During World War II, Pepsi supported armed forces personnel in major cities with service centers -- deluxe canteens where soldiers, sailors and marines could obtain anything from a hamburger and a Pepsi to a shower and shaving facilities. During the Persian Gulf War, Pepsi-Cola sent 10,000 cases of Pepsi and Diet Pepsi to U.S. troops in what it termed ``Operation Desert Soda.''

Nortel announcement/U.S. WEST deal

DALLAS, Nov. 24 /CNW/ - U S WEST (NYSE:USW) is enhancing its advanced payphone system by installing more than 5,000 Nortel Networks (NYSE: NT/TSE: NTL) new Millennium MultiPay MultiApplication payphones. These advanced payphones are capable of evolving with the dynamic needs of the public access and electronic commerce marketplace and will deliver a whole new level of convenience to payphone site owners and U S WEST customers.

``Millennium provides a public access operating system for the future,'' said Matt Scheuing, vice president, marketing and business development, US WEST. "In a world where consumers demand equal access to data and voice communications, the Millennium MultiApplication phone offers a flexible way for our customers to access advanced telephony, information and smart card services in the public environment.

``Smart cards, mobility, and competition are driving rapid change in the public access environment. Product demands change constantly, and the Millennium platform supports this environment of change,'' Scheuing added. Nortel Networks Millennium MultiPay MultiApplication terminals provide US WEST with an advanced service delivery platform that is capable of offering future services such as acceptance of multiapplication smart card schemes, smart card reloading, sophisticated dialing features, and promotional and loyalty programs. The terminal will support U S WEST's goal of obtaining global smart card interoperability with several major emerging smart card schemes.

The Millennium MultiPay MultiApplication phones pave the way for new cost savings and future enhancements by enabling US WEST to download complete applications, new features and functionality without having to visit the payphone site. U S WEST can even determine which terminals receive new functionality, based on geographic or site requirements. The added ability to download applications to the MultiPay MultiApplication terminal enables customers to evolve their business as the market dictates. In addition, Millennium MultiPay MultiApplication terminals are data jack ready, which enables U S WEST to offer public access to network services, the Internet and electronic mail.

There are currently more than 160,000 Millennium payphones throughout North America. More information on Nortel's public communications access terminals is available by calling 800-4NORTEL (800-466-7835). Nortel is a member of the Global Chipcard Alliance (GCA) and is working with its customers and other industry leaders to promote (1) worldwide interoperable networks, increased chipcard functionality and ubiquitous terminal systems.

Tower Records & American Express Hit the Holiday Season With Introduction Of Electronic Gift Card

SACRAMENTO, Calif., Nov. 23 /PRNewswire/ -- Tower Records, the world's largest independent music and entertainment retailer, in partnership with American Express today announced the launch of its Gift Card, for sale through the chain's participating U.S. retail locations and its online stores.

Convenient, custom designed and attractively packaged, the Tower Gift Card replaces the traditional gift certificate, as a magnetic striped, stored value card, which works in much the same way as a phone card.

Gift Cards can be purchased at any sales counter located within a Tower Records store, for any amount from $10-$100. Appealing and hip, Gift Cards are activated upon purchase, when loaded with funds. At the time of redemption a simple swipe of the card like a credit card will deduct the amount spent from the total. The customer does not have to worry about a card expiration date, since the Tower Gift Card is driven by value and not by date. Additionally, pre-funded cards can be obtained from Tower Records' Website and through its Call Center in denominations of $10, $25, $50, $75 and $100.

Tower Records also plans a limited edition series of Artist Collector Cards with new issues to be released every 3 months. The first cards in the series currently feature recording artists Jimi Hendrix, R. Kelly, Dave Matthews Band, Jewel and a highly popular Titanic card completes the collection.

Tower Records joins Chanel as one of two retailers to participate in the American Express Gift Card pilot program. Stan Goman, Chief Operations Officer at Tower Records explained, ``With the roll out of the Tower Gift Card, we are poised to enter a whole new arena, where we offer frequent buyer programs, gather demographic data and expand our marketing programs to include worldwide usage and acceptance of the Tower Gift Card.''

Tower's alignment with American Express is viewed as pivotal to the success of the Gift Card program. As Tower Records' Vice President of Training and Education, Jennifer Hegji commented, ``We are very excited to join forces with American Express on the Tower Gift Card project. The organization's understanding of the Gift Card business is most impressive, as is the range of expertise and service afforded to us as a retail partner.''

American Banknote Corporation Announces Gemplus Smart Card Joint Venture

NEW YORK, Nov. 25 /PRNewswire/ -- American Banknote Corporation (NYSE: ABN - news) today reported that its subsidiary, Leigh-Mardon, Australia's largest plastic and smart card manufacturer, has established a joint venture with French-based Gemplus, the world leader in smart card development and manufacture.

The Gemplus - Leigh-Mardon joint venture is being established to manufacture smart cards in Melbourne and market smart card based solutions in Australia and New Zealand. This comes in response to growing demand for these products and solutions in the region. Regarded increasingly as an important component in the information technology industry, the smart card is emerging to meet demands created by the explosive growth of digital computing, media and communications throughout the world.

The joint venture will have access to the latest products and technologies designed and developed by Gemplus, including those for banking, transportation, healthcare, and communications. This will enable the joint venture to take an active and leading role in the applications where the smart card is experiencing dynamic growth. Key areas for smart card growth include GSM/Mobile Telecommunications, Multimedia/Internet, and Payment and Multi-Application smart cards.

The Victorian government has embraced Gemplus smart card technology for its goal of placing all government and community services online by the year 2001.

Morris Weissman, Chairman and CEO, stated, ``We look forward to working with Gemplus on smart card projects. We believe that the market for these cards is already worth A$50 million and that it will double within three to four years.''

GSA SmartPay - Next Generation of Federal Government Charge Cards

WASHINGTON, Nov. 27 /PRNewswire/ -- The U.S. General Services Administration (GSA) has announced the beginning of GSA SmartPay, the new federal government charge card program that improves travel, purchase and fleet payment services for federal employees by simplifying payments and cutting administrative costs.

``GSA is dedicated to improving the way the federal government does business. GSA SmartPay facilitates the government's movement toward electronic commerce by providing electronic solutions that streamline processes and improve accountability,'' said GSA Administrator David J. Barram. ``The program is designed to take advantage of technology and encourages the further development of electronic solutions.''

The GSA SmartPay program is a government initiative that combines commercially available products and services with unique government requirements and systems. Contracts were awarded earlier this year to Citibank, First National Bank of Chicago, Mellon Bank, NationsBank, and U.S. Bank. Under the program, agencies have the opportunity to combine all their travel, purchase and fleet needs on one integrated card, affording them the opportunity to save time and money administering the program. Federal agencies reviewed the services offered by the companies and then chose the contractor that best met their individual needs.

In addition to services such as ATM, debit cards, and stored value cards, agencies can take advantage of advanced technologies used in smart cards, according to G. Martin Wagner, Associate Administrator of GSA's Office of Governmentwide Policy. Wagner said that smart cards provide ``a convenient, secure and mobile tool for accessing network-based systems.''

Over two million cards have been issued and become effective November 30. Federal cardholders have been issued Visa or MasterCard brand cards for their travel and purchase services, while fleet services are provided through either MasterCard or Voyager brand cards.

PROMOTIONAL NEWS

Smuckers / Ice Skaters

Found in this Sundays Coupon Section form for: 3 different 5-min phone cards featuring Scott Hamilton, Kristi Yamaguchi & Ekaterina Gordeeva. Purchase 1 Smucker's 12/18oz Jams, jellies or preserves. Send dated cash register tape & $1 each card ordered. Form doesn't say limited. Form required. Offer expires 5/15/99.

From: Ginnie Katchur (Thanks to Michael Horton for writing as well)

Purina Dog Food

This week I found 3 min., 5 min., and 10 min. phone cards in boxes of Purina's Moist & Meaty dog food. Also included is an offer to send in threes proof of purchase and receive a 20 min. card. I found them in three different stores in Green Bay. ( They're not tied to a certain distributor or store chain.) They are nice-looking thin plastic cards with no scratch-off, an expiration date of 12/31/99, and service provided by Smartalk.

From: Joe Walder

Best Buy / Zorro Phonecard

Purchase a Mask of Zorro Video (Starting Tuesday Dec. 1, 1998) and receive a 10 minute phonecard. Minimum 50 per store, while supplies last.

Until Next Time,

Alan

Distribution

Phonecards On-Line is published 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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