Phonecards On-Line - Published by Alan H. Cohen

December 27, 1998


Issue 155


Phonecards On-Line is Published by Alan Cohen


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In This Issue:

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This week we are proud to present to POL readers the very first US Remote PhoneCards. PhoneLine USA issued these in late 1989. They have been carefully preserved from that very first day in Hawaii when the technology that we know today as remote phonecards got its start. The cards are of plastic and show Diamond Head near Waikiki. Several types were issued simultaneously and are available as follows: PLU 1: (D1): $5 Diamond Head. MINT $275.00 PLU 2: (D4): $8 Diamond Head. MINT Not Available PLU 3: (D3): $12 Diamond Head. Mint $275.00 PLU 4: (D2): 5 Minutes, Diamond Head. Hawaii Calling. MINT $275.00 The $12 card was made to be the same number of minutes to Canada as the $5 Card. The $8 card was for international calls. The 5-Minute card was made to present to arriving passengers to call home to announce they had arrived. Was there a doubt? We have been actively buying these cards since we met the owner of PhoneLine USA, Mr. Mike Noland at the Richmond Convention in September 1993. We recently purchased this small group; it is the last of a classic. You may order directly: Visit our website for a nice Disney Special or to request our PriceLists at

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Bill Clinton Phonecards (all issued before Starr investigations) Important and interesting phonecards issued well before the Ken Starr investigation of Bill Clinton's affairs are still available. In view of the latest developments in the congressional proceedings, these phonecards are now taking on a more historical significance. In 1993 Sprint issued a two 10 unit cards set poking fun at President Clinton and German Chancellor Helmuth Kohl. Full color caricatures depict both leaders on a red telephone. This set is available a 15.95 postpaid in the original folder. Canada's Bravo Technologies issued a $10.00 commemorative phonecard for the Vancouver Summit Meeting of April, 1993. This Landis & Gyr card, using British Columbia Tel Phones, features a color picture of Pres. Clinton and Boris Yeltsin. This card is available for $8.95 postpaid. A commemorative 5 unit phonecard was issued by British Telecom for Bill Clinton's visit to the Berlin Wall while campaigning for the presidency. The card pictures Bill Clinton speaking in Berlin while standing besides the bust of JFK. This card is available for $7.95 postpaid. You can buy all three items from us basis $27.00 postpaid These and many other rare and interesting telephone cards are available from our extensive inventory by mail order (send for free catalog). Powell Associates has been in business and dealing in collectible phonecards since 1992. We recently moved our offices from Manhattan to Morganville, New Jersey. All major credit cards are accepted. Powell Associates Tel 732-332-9093 Fax 732-332-9094 Email - luisvigdor@compuserve.com Internet - http://www.powellpm.com

NEWS / COMMENTARIES

1998 Year in Review

Id like to start off by wishing everyone a happy new year. 1998 sure has been an interesting year for phonecard collecting. We started the year with STS (a network marketing company), Scoreboard, and Moneycard Collector Magazine. As we start 1999, all three of those are a part of history. In my opinion, both STS and Scoreboard damaged the hobby, and I am not sad to see that both are gone. STS at one point was reported to have tens of thousands reps, who resold phonecards for profit. Unfortunately, this company folded, leaving a lot of these reps with plastic that had no phonetime on it. Im sure a lot of people also never received commission owed. This is not good for the phonecard hobby, as I am sure there are many people out there who will now have nothing to do with a phonecard.

Scoreboard had been the center of controversy for many years. They are credited with ruining thematic collecting of Coke and McDonalds cards. Additionally, other problems with the company were unrealistically high $1 per minute rates, overproduced cards (despite announced production runs) and cards that always were worth less after their release. Not a single one of their issues were worth as much 6 months after release.

The biggest story of the year has to be Moneycard Collector Magazine folding. They started 1998 as a glossy monthly magazine, and soon switched to a tabloid format. Then came the announcement that they would cease to be a standalone, and that they would be incorporated into Coin World Magazine, with a web site as well. Just a few weeks ago came the news that they would cease altogether. Their absence will be felt by many.

There is no doubt that 1998 was a difficult year for this hobby. However, there are a few bright spots which will make a difference to the future of this hobby. The first is the expansion on the internet of resources for phonecard collectors. The medium makes it feasible for collectors and businesses to continue with a low overhead cost compared to print marketing and advertising. The second bright spot is that the retail end of this hobby continues to grow at a phenomenal rate, and will continue to do so for years to come. This means that more people are issuing cards, and more people are using the cards. With more cards out there, more people will use the cards, and hopefully put them away. This is really what needed to happen a few years ago, when most people on the street in the US had no idea what a phonecard was. There will be fewer collector oriented issues in the near future, with more cards being produced with the intention that they be used by the consumer. This will help weed out companies that suddenly go bankrupt, leaving the consumer with no phone time. The third bright spot is a recent announcement by the US Justice Department that they will be looking into a credit card monopoly by Visa and Master Card. They have stated that these companies control that market, and are holding back developments in the smart card market.

I believe that now is a very good time to be a phonecard collector. It is a worldwide hobby, and although it seems that hard times are upon us here in the US, all signs point to this hobby expanding from its current base. With many issues having a production run of under 5000, and with prices down from a few years ago, I believe that there will be a day we will all be wondering why we did not purchase cards then. A comparable analogy is the baseball card market. In the 1970s, there were a few adult collectors, no really organized hobby in print, and prices that by todays standards look very low. You could purchase a Mickey Mantle rookie card for a few dollars. There arent any more cards out there today, just a more organized hobby and a lot more collectors. That Mantle rookie will set you back many thousands of dollars.

Below are what I consider some of the top stories reported this year in POL. All issues of POL are available for you to view free of charge on the web at:

http://www.cardmall.com/pol/

Top 15 Stories reported in POL in 1998

FUN Countdown

As of today, only 11 more days to FUN! Look for a complete wrap-up after the show ends in POL.

PRESS RELEASES

1999 Rabbit Coin $10 LaPuce/Quick Change

Second of a remarkable series of coins designed by Harvey Chan the 1999 Proof sterling silver proof lunar coin will be available in the Chinese New Year. The cameo is in 24-Karat covered octagon. The Royal Canadian Mint (RCM) in co-operation with Bell Canada has authorized the second such LaPuce/Quick Change chip cash card. These "Smart Cards" or "Cash Cards" do not expire. Quantity issued 1,088. A special Showcard for the Florida United Numismatists Show has been included to publicize the event to be held in Orlando Jan. 7-10 1999. This show is one of the biggest such shows in the USA. Quantity issued is 1,888.

For further information contact:
Bell Collectors Club
1-800 404-7823
1-416 585-2273
Booth #1037 at FUN Show.

1998 Norman Bethune LaPuce/Quick Change Phonecard

The Royal Canadian Mint and Bell Canada has authorized the production of 2 limited edition (900 of ea) chip cash phonecard in honour of Norman Bethune. Dr Norman Bethune a Canadian humanitarian who became famous in China for his medical achievements there and more like the "Doctors without Frontiers" of today. The set includes a Chinese coin in honour of Norman Bethune issued simultaneously by China. Quantity issued 900 of each $5 cash card.

New Phone Card Connection Phonecard

The Phone Card Connection is pleased to bring to you a card that recognizes a lady that has been involved in the practice of healing for over 29 years. Lilia Logette PhD. has been offering alternative healing since 1970 at the Center of Human Development in Hollywood, Florida. Along with Barbara Simons PhD., they offer a variety of healing modalities, which include past life regression, counseling with psychic insight, and energy transfer therapy for adults and children.

These cards have been "blessed" to imprint them with divine healing energy. The card pictures an angel that has the face of Lilia on it. The angel is Victorian style with a slight turquoise background fading to white with a beautiful black border. It is a Mini-jumbo card that comes with an envelope. There is only 400 individually numbered cards with 5 minutes of uncovered time on it that expires at the end of 1999 and many of the cards are going directly to the center. Contact the Phone Card Connection at lenny@cashcards.com, at http://www.cashcards.com or at 888-850-CARD.

'M&M's' Chocolate Candies Selects IDT To Be Exclusive Calling Card Provider

HACKENSACK, N.J.--(BUSINESS WIRE)--Dec. 23, 1998IDT (NASDAQ:IDTC - news) today announced it has signed an exclusive multi-year supply and distribution agreement with ``M&M's' Chocolate Candies, the No. 1 confectionery brand in the world, to provide specially-branded prepaid phone cards. Through a strategic marketing relationship, `M&M's'' cards will be available to all of the retailers that currently carry ``M&M's'' Chocolate Candies, a product manufactured by M&M/MARS.

The phone cards will feature the likenesses as well as voices of the `M&M's'' Brand Characters currently featured in the ``M&M's''e advertising. Additionally, IDT will be providing its own distribution channels for the ``M&M's'' cards through its partnership with Union Telecard Alliance, which distributes phone cards to newsstands and grocery stores throughout the United States.

As the leading provider of end-to-end calling card solutions, IDT will handle the entire call process of the phone cards, including call routing, authorization, pre-paid platform and billing of the ``M&M's'' cards.

Ed Miller, Vice President of Corporate Sales for IDT stated, ``The 'M&M's' branded card using the characters' voices allows us to extend our product line with a universally recognized reputation that can differentiate IDT from its competitors. In the rapidly growing market for prepaid telephone services, this agreement provides IDT an immediate and significant advantage. We look forward to a long and mutually beneficial relationship with 'M&M's'.''

``The agreement with IDT is very exciting because it provides another great opportunity for showcasing the ''M&M's`` Brand to its very important consumers,'' stated Pat D'Amato, M&M/MARS spokesperson. ``The 'M&M's' branded telephone cards build affinity between the 'M&M's' Characters, brand and consumer.''

Red, the Headline Grabbing ``M&M's' Spokescandy had this to say, ``When I heard I was going to be featured on phone cards and consumers will hear my voice when they place a call, I was overwhelmed with the idea. Then I learned I had to share the limelight with the other popular characters, Yellow, Blue and Green. Oh, well that's life!''

Estimated to become a $3.6 billion market by 2001 (up from only $1.3 billion in 1997), the pre-paid disposable phone card market is growing at a rapid pace. IDT is keeping up with the growth, primarily due to its aggressive rates and extensive distribution channels.

Prepaid telephone cards offer consumers an opportunity for substantial savings and convenience when placing domestic and international local and long distance calls. Private label phone cards, in particular, serve as a lucrative promotional item, generating brand name awareness by ensuring that the Company's name is in each customer's wallet at all times. For more information on IDT's promotional and private label prepaid calling services, call 1-800-786-8438.

University of Canterbury Selects Diebold Australia to Implement Campus Card System

CHRISTCHURCH, New Zealand, Dec. 21 /PRNewswire/ -- The University of Canterbury, situated in New Zealand's South Island, has selected Diebold Australia to supply a campus card system. The Diebold campus card system will be used for a variety of applications such as identification and stored value.

The University of Canterbury has more than 14,000 full time students plus staff on campus. The University extensively explored the market for an experienced provider of campus card systems with leading-edge technology, and found that the Diebold system provides all its current and future requirements.

``The biggest benefit for Canterbury University is that the Diebold system integrates all of its applications in one identification card,'' said Barbara Paterson, project manager for the University of Canterbury. ``Students will initially use the card for library services, building access, computing and telephones,'' said Paterson. ``Students will reload value onto their cards through a 'bank account' type of system.''

``To access telephones, a student will simply enter his or her personal identification number (PIN) into the phone. The University has a program which automatically determines whether there are sufficient funds on the card for the call,'' she said.

Paterson added that the system incorporates point-of-sale (POS) systems for retail sales and privilege/entitlement verification, on-line vending, laundry and copier systems, and a number of other applications. ``Future applications include access control network authentication, Internet billing, network printing, a link to financial institutions for electronic funds transfer capability and many more applications as required by the university.''

``The system's modular design allows us to implement only those features and functions needed today, and allows for expansion to meet future needs as both functional and fiscal needs dictate. This offers substantial cost efficiencies to the University,'' said Paterson. ``The Diebold system offers much greater functionality than our existing card system.''

Diebold, Incorporated is a leading provider of campus systems to the university market with more than 350 systems installed and 25 years experience in the education sector. Diebold has campus systems installed around the world, including Victoria's Deakin University.

John Deignan, managing director of Diebold Australia said Diebold's card programs have evolved during the past twenty years from simple electronic devices employed to manage and control basic campus meal plans. ``Today's complex, multi-application networked systems are capable of monitoring and controlling thousands of on- and off-campus readers and terminals,'' he said. Stage one implementation is currently underway at Canterbury University, and the system will be on-line by December in readiness for the upcoming 1999 academic year. The library is first to use the system, creating a near cashless environment for students and staff. The university will expand the system to the whole campus as a second phase, commencing in the second quarter of 1999.

PROMOTIONAL NEWS

Illinois Power Phonecard Offer

Two ways to receive a 10 minute phonecard (For Illinois residents only, though) Use the Levelized Payment Plan for energy bill, by averaging your monthly bill, and have that average be your set monthly bill. Also, sign up for Direct Pay to have your power bill deducted each month from your bank account. Contact Illinois Power at 800 755-5000 if you qualify to take part of this program

From: Steve Eyer

Free AT&T Phonecard

This Wed & Thurs Challenger, Gray & Christmas- in Chicago will give free job-search advise to those who call 1-312-332-5790, 9AM to 6PM EST(If you get a busy signal keep trying) Callers also get $25 discount coupon from Southwest Airlines & a pre-paid AT&T Phone Card. Doesn't say how many minutes. Offer was seen in Parade Magazine Dec 27, 1998 Page 27.(Calif. Sunday paper)

From: Ginnie Katchur

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.

1) On-Line on the World Wide Web. The address is: http://www.cardmall.com - All back issues are archived at the web site!

2) Direct e-mail. Send a message to: phoneline@cardmall.com

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