Phonecards On-Line - Published by Alan H. Cohen

April 4, 1999


Issue 166


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

PUBLISHER'S NOTE

Several people have e-mailed asking what has happened to the newsletter. Over the past month, there have been only two issues. A weekly publication should continue without interruption for the near future.

NEWS / COMMENTARIES

Make-A-Wish Auction

The Make-A-Wish auction should start on Friday, April 9, 1999. Hopefully I will not need to make another postponement announcement next week.

New Zealand News

From: David Levin

Hot off the press from Telecom New Zealand is a 5 card set of Friends of Mickey Mouse part 4 - Huey, Dewey and Louie. They are frequent companions at home and on adventures to far-off lands. They can be a mischievous trio, playing tricks to goad Donald, their "Unca" into one of his famous tantrums. More often than not, however, Donald finds himself rescued from disaster from the more level headed trio. Only 500 numbered presentation packs and 250 loose sets have been released.

Telecard Security News

This is a web site that has come to my attention, and can be found at: http://members.tripod.com/telecardnews/index.html

According to the site owner, "My site is dedicated to all the past and latest news about phonecard security, hacking, news etc."

Lunar and Tiger Coin Phonecard Error

From: Darnell Inc.

Many customers who purchased the Tiger Coin from Darnell at Eatons last year or may have purchased this card for use may have an error collectors item in their possession. As a bonus offer many received this card when purchasing the Tiger Coin. The same thing happened this year with the Lunar medallion $10 phonecard.

It seems the Royal Canadian Mint sent an original slide to use for the colour reproduction. In both cases the wrong side was used from the negative. As these error cards were distributed all over Canada, it is remarkable to see that after so many people had seen the card, it was only when it arrived at Darnell Collectors Centre in Toronto did the Chinese staff quickly notice the error.

Bell quickly called back all unsold cards and re-issued the corrected card. And it is understandable why since the Lunar silver medallion is unilingual Chinese and such a mistake can pass through so easily. The market value for such an error could sell well over $100. So check your phonecards.

PRESS RELEASES

BellSouth Allowed To Sell Cards

By JEANNINE AVERSA

Associated Press Writer

WASHINGTON (AP) -- The Federal Communications Commission on Tuesday rejected an attempt by AT&T (NYSE:T - news) to stop BellSouth Corp. (NYSE:BLS - news) from continuing to market a prepaid card that people can use anywhere in the country to make long-distance and other phone calls.

AT&T filed a complaint to the FCC in January contending the arrangement violates a provision of a 1996 law that bars BellSouth and the nation's four other regional Bell telephone companies from providing long-distance service to their local phone customers.

But the FCC disagreed. The commission concluded that the arrangement is legal and does not reduce BellSouth's incentives to open its local telephone markets to long-distance companies and other rivals that want to offer competing local phone services, an FCC official said

The 1996 law says a Bell company must open its market to competitors and get FCC approval before it may provide long-distance service to local customers. No Bell has done so.

Long-distance service for the card is being provided by an unaffiliated company, U.S. South Communications, although the card is marketed by BellSouth.

BellSouth has defended the legality of the card, which the company began marketing inside and outside the company's nine-state local phone region in December.

``We are gratified by the decision,'' said Jim Harralson, general counsel of BellSouth Long Distance Inc. ``This is a win for consumers who now continue to have greater choice and convenience in paying for long-distance calls.''

BellSouth has been selling various forms of popular prepaid cards since 1992.

The complaint was filed under a new process to quickly resolve disputes. The FCC issued its decision 60 days after receiving the complaint. It's the FCC's first decision under the new process, which is called the rocket docket.

SIMS Communications Prepaid Phone Card Agreement with Amtrak -- Rail Travelers Can Collect Amtrak Phone Cards

IRVINE, Ca.--(BUSINESS WIRE)--March 30, 1999--SIMS Communications, Inc. (NASDAQ: SIMSC - news) announced today that the Company's prepaid phone card agreement with Amtrak has been expanded to include four additional train stations. Travelers can purchase custom designed Amtrak phone cards now, available from SIMS' vending machines located in Amtrak's Portland, OR; Eugene, OR; and Seattle, WA train stations and, later this summer, at Santa Barbara CA. The Amtrak series of collectible phone cards are available in $10 and $20 denominations.

SIMS also announced the second in a limited edition series of phone cards commemorating Amtrak trains. This latest card depicts the Amtrak Cascades trains inaugurated this month. These sleek, modern, European-style trains feature a distinctive evergreen and cappuccino color scheme and sport unique seven-foot tail fins. The Amtrak Cascades trains use pendular train technology and tilt to travel through curves and maintain speed. This results in reduced travel times while maintaining passenger comfort. Last fall Amtrak and SIMS Communications, Inc., partnered to create the first Amtrak calling card featuring The Coast Starlight.

The Cascades card currently may be purchased from vending machines at Amtrak stations located in San Francisco, San Luis Obispo, Oakland, Bakersfield, Fresno, Emeryville, Anaheim, and Stockton, California; Eugene, Portland, Oregon; Seattle, Washington and through Amtrak's merchandise order line at 800-400-1229.

AT&T completes SmarTalk purchase at reduced price

NEW YORK, April 1 (Reuters) - AT&T Corp. (NYSE:T - news) said Thursday it completed the purchase of SmarTalk Teleservices Inc., a bankrupt prepaid calling card company, for about $145 million -- nearly 25 percent less than first expected.

The final price the nation's top long distance phone company paid for nearly all the assets of Dublin, Ohio-based SmarTalk was about $47.5 million lower than the original purchase price of $192.5, which had been subject to adjustments.

AT&T said it lowered the original price after SmarTalk did not perform as well as expected after the deal was forged in January.

Despite SmarTalk's lackluster performance, AT&T was still optimistic about the acquisition and ``comfortable with the final price we are paying,'' AT&T spokeswoman Eileen Connolly said.

SmarTalk provides prepaid calling cards and prepaid wireless services. It has distribution agreements with the U.S. Postal Service, as well as retailers and hotels throughout North America and the United Kingdom.

SmarTalk filed for Chapter 11 bankruptcy protection in January. AT&T's purchase of SmarTalk was approved by the U.S. Bankruptcy Court in Delaware.

The SmarTalk acquisition comes as AT&T is making an aggressive push to expand its prepaid phone card business.

``The addition of SmarTalk's well-established retail channels and its state-of-the-art...technology gives AT&T the ability to accelerate the growth and scope of our prepaid card business,'' said Howard McNally, president of AT&T's transaction services unit.

AT&T in February forged an agreement to sell its prepaid phone cards in Wal-Mart Stores Inc's (NYSE:WMT - news) Wal-Mart and Sam's Clubs stores.

AT&T Chairman C. Michael Armstrong said at an investor conference in March that the company's prepaid calling card business was growing faster than expected. AT&T said it will offer employment to nearly all of SmarTalk's 170 employees.

PROMOTIONAL NEWS

AT&T Offer

I just got around to reading the brochure that came with my AT&T Universal Card (Mastercard) and, in addition to awarding points for purchases, they are awarding bonus AT&T Phone Cards. For $300 in purchases between March 1 and May 31, 1999, you'll receive a 1-hour Phone Card. Spend $500 and get a 2-hour phone card, and so on up to $2,000 in purchases for an 11-hour card.

From: Jan Cooper

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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