Phonecards On-Line - Published by Alan H. Cohen

June 6, 1999


Issue 173


Phonecards On-Line is Published by Alan Cohen


Return to POL Index

In This Issue:

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

Collector Auctions (including phonecards) are at http://www.cardmall.com/auction

Publishers Note

POL will not be published next week (6/13) as I will be in Hawaii, thousands of miles away from my computer.

NEWS / COMMENTARIES

UPCOMING MONEYCARD-RELATED SHOWS/CONFERENCES

(Some shows may feature other collectibles with moneycards secondary)

Don't see your favorite show? Let us know: Telequest@USA.net

Copyright 1999 Telequest

1999

2000

The Collectors' Advantage Magazine

The Collectors' Advantage Magazine has published the Spring 1999 issue. The Editorial contents are:

This is a 'Special Collectible Issue' that will be polybagged with 2 phonecard catalogs, flyers, and 2 FREE phonecards (Cigar Label and Quantum Comics).

There are 5 different phonecards with Vintage Cigar Label images on the front. Collect all 5.

This Special Collectible Issue is available for $10.00

Call 1-800-773-3315 to order by phone or mail check or money order to:

The Collectors' Advantage

17-10 River Road, Suite 4-D

Fairlawn, NJ. 07410

PRESS RELEASES

MCI WorldCom to Acquire SkyTel Communications

CLINTON, Miss., May 28, 1999 - MCI WORLDCOM, Inc. (NASDAQ:WCOM) and SkyTel Communications, Inc. (NASDAQ:SKYT) announced a definitive agreement to merge the two companies. Under the terms of the agreement, holders of SkyTel common stock will be entitled to receive shares of MCI WorldCom common stock for each share of SkyTel common stock. Based on the average trading price for MCI WorldCom common stock on May 27, the merger values each share of SkyTel common stock at $21.24.

The common stock exchange ratio will be fixed at 0.25 shares of MCI WorldCom common stock for each share of SkyTel common stock, so long as the average trading price for MCI WorldCom common stock is greater than $80.00 per share during the 20 trading days ending three trading days prior to the closing of the merger. If MCI WorldCom's average trading price is between $72.00 and $80.00 per share, the exchange ratio will be increased to a number of MCI WorldCom shares equal to $20.00 divided by the average price. If the average trading price for MCI WorldCom common shares is less than $72.00 per share, the exchange ratio will be fixed at 0.2778 shares of MCI WorldCom common stock for each share of SkyTel common stock.

Holders of SkyTel $2.25 Cumulative Convertible Exchangeable Preferred stock will be entitled to receive one share of MCI WorldCom preferred stock for each share of SkyTel preferred stock that they own. The MCI WorldCom preferred stock will be convertible into MCI WorldCom common stock on a basis that gives effect to the exchange ratio in the merger and will otherwise have the same terms as SkyTel's preferred stock.

MCI WorldCom and SkyTel, both headquartered in the Jackson Metropolitan area, have longstanding business ties. MCI WorldCom is currently the largest reseller of SkyTel services.

MCI WorldCom President and CEO Bernie Ebbers said the acquisition is an important building block in the company's overall wireless strategy, which also includes fixed wireless technology.

"SkyTel is the industry leader in wireless messaging, and is ahead of the curve in developing and implementing wireless data applications. In addition to its unique product offering, its key assets, its customer base of 1.6 million subscribers and annual revenues in 1998 of $518 million, SkyTel also brings a talented management team with a wealth of experience in wireless communications."

"MCI WorldCom is an aggressive company with an unparalleled long-term history of creating value for customers, shareholders and employees," commented John Palmer, SkyTel Chairman. "MCI WorldCom brings SkyTel a host of technical synergies, like cost-effective local telephone numbers, robust Internet services, and of course, expanded distribution and marketing muscle to help increase awareness of wireless messaging." MCI WorldCom expects the transaction to be accretive to earnings immediately upon closing.

The Boards of Directors of both companies have approved the merger. Consummation of the merger is contingent on approval of the Department of Justice and Federal Communications Commission, as well as SkyTel shareholder approval. The transaction is expected to be completed in six to nine months.

The parties expect to account for the deal as a pooling of interests. SkyTel is being advised by the investment banking firm, Warburg Dillon Reed.

SkyTel is a leader in wireless messaging, serving more than 1.6 million customers. Since 1989, SkyTel has led the industry toward true nationwide messaging through a series of innovations that culminated in SkyTel two-way interactive messaging service. This enables customers to exchange messages with the Internet and other pagers, receive messages via email and the Internet, and send messages to any telephone in the United States. SkyTel is headquartered in Jackson, Miss., and had 1998 revenue of $518 million. For more information about SkyTel, please visit our web site at http://www.skytel.com.

MetroPlus Enters Into Agreement For Distribution of a New Phone Card

LAKE ELSINORE, Calif.--(BUSINESS WIRE)--June 3, 1999--MetroPlus Communications Technology, Inc., a division of NP Energy Corporation (OTC BB:NPEC - news), is pleased to announce the signing of a marketing agreement with The Ultimate Cigar Company (OTC BB:ULTC - news).

Ultimate announced today the launching of its Web Access Card program for the United States and Canada. Web Access Cards are a direct marketing tool distributed through convenience stores. It allows Internet based companies to market in the real world in a measurable and cost-effective manner. Customers purchase the Web Access Card and register for fulfillment on the Internet through a Web site called Red Hot Access.com. After registering the customer is hyperlinked to the participating Internet company's Web site. Offers can be price discounts, savings or special access to selected areas of a Web site.

MetroPlus, based in Vancouver, BC, is building its own marketing and licensing system for phone-to-phone Internet Telephony. Internet Telephony uses the Internet to send audio between two telephones in real time. MetroPlus has signed a Letter of Intent for a sixteen-city network with IPVoice.com (OTC:BB:IPVC), a developer and producer of unique proprietary state of the art software and hardware solution for use in IP Telephony. IPVoice.com's premier product is an Internet Gateway named ``TrueConnect(TM)'', a fully Y2K compliant gateway that allows users to conduct real time full duplex, high quality two-way voice communication over the Internet.

Using the IPVoice.com system, MetroPlus will be able to generate its own prepaid Internet Telephony phone card. Marketing and distribution of the phone card is critical to the Company. The Web Access Card program has the potential to reach thousands of convenience stores through distribution with Ultimate and its partners. Ultimate is underway with marketing the program to convenience store chains in the United States and Canada.

MetroPlus will have the opportunity to market Internet Telephony to 30 major markets across the United States and Canada. MetroPlus will begin marketing in the cities as soon as a final agreement is reached with IPVoice.com and the 30 gateways in place.

``In developing our Internet Telephony strategy, we felt two aspects were very critical to its success. First, we needed to partner with a company providing superior technology. IPVoice.com is that company. Secondly, we needed to have a marketing plan that was measurable and effective. We feel the Web Access Card program has the potential to be a huge success in the market place. We wanted to get our marketing plan together and feel we can offer a viable program,'' said Mark Jensen, Marketing Director for MetroPlus.

MetroPlus has a Letter of Intent with IPVoice.com to be a TruePartner Master Distributor, a license program for operating Internet gateways through IPVoice.com. MetroPlus is granted exclusive territories in Canada, Washington and Oregon. There are 16 primary cities involved in the agreement. MetroPlus will have active gateways in the next twelve months in Canada in Vancouver, Calgary, Edmonton, Winnipeg, Toronto, Montreal and Halifax. In Washington State, MetroPlus will operate gateways in Seattle, Tacoma, Spokane, the Tri Cities and Vancouver. In Oregon, the company will be in Albany, Beaverton, Eugene and Portland.

Signing of the final agreement between MetroPlus and IPVoice.com will take place in June.

Bingo & Gaming Entering Pennsylvania Exclusive Distribution Deal Signed with Phone Card Unlimited

AUSTIN, Texas--(BUSINESS WIRE)--June 2, 1999--Bingo and Gaming International Inc. (OTC BB:BING), an Austin-based distributor of prepaid phone cards and machines that distribute its prepaid phone cards, announced today that it has signed an exclusive distribution contract with Phone Cards Unlimited Inc. for the placement and operation of its Lucky Strike pre-paid phone card machines in the state of Pennsylvania. Bingo & Gaming states that the agreement will lead to the sale of 35 new machines immediately. ``Pennsylvania should be a great market for our machines,'' says Bingo & Gaming International CEO Reid Funderburk. ``Phone Cards Unlimited is positioned properly to provide Bingo & Gaming International a smooth entry into the state and placement in prime locations. These additional sales, along with those that should accompany our entry into the North Dakota market as well as our expansion into California, should increase the company's projected overall revenues by $5.l million or approximately 140 percent over last year.''

The contract, which took nearly nine months to negotiate, provides minimum purchase requirements that are expected to increase the total number of machines sold by the company in 1999 by 100 percent. This contract represents a 67% increase in the number of machines sold over last year.

``We are pleased to have completed our Distribution Agreement for the Lucky Strike prepaid phone card dispenser in Pennsylvania,'' states John Smolic, president of Phone Cards Unlimited. ``After carefully comparing other similar dispensers, we chose the Lucky Strike Dispensers handled by PrePaid Plus Inc. The quality of the product, the accountability features offered by the machine, and the knowledge and thoroughness of the PrePaid Plus sales and technical staff really were the deciding factors in my decision to represent their product. Several machines are already on location and more are scheduled to arrive this week. We look forward to a long and profitable business relationship.'' PrePaid Plus Inc. is a wholly owned subsidiary of Bingo & Gaming International Inc.

Bingo & Gaming International sells, rents, operates and services Lucky Strike machines. The prepaid phone card vending machines employ a novel marketing concept which permits consumers to enter a free promotional sweepstakes offering cash prizes from $1 to $1,000 with every phone card purchase. The company also operates as a lessor of charity bingo facilities.

The company's growth strategy includes selectively broadening the geographic scope of its operations by entering new markets. Pending legislation and distribution contracts may enable Bingo & Gaming International to sell its machines in several more states this year than it has done in the past. The company already has its machines placed in Texas, Oklahoma, Arizona, Connecticut, Idaho, North Dakota and Illinois. Most of its machines are located in charitable bingo halls and Indian bingo facilities, but some are located in bars and bowling alleys.

For more information, contact David Drake of Merger Communications at 713/267-2328 or daviddrake@earthlink.net.

Franklin Telecom Helps NATO Troops Phone Home

Free Global Calling Cards Provided for Troops in Need

WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--June 3, 1999-- Franklin Telecom (AMEX: FCM - news) Thursday announced that it is making available free FNet calling cards to NATO troops stationed in the Bosnia, Albania and Macedonia region who have special needs to contact family and friends.

Ronald G. Weaver, Sr., Vice President of Worldwide Sales, will deliver the cards during a trip to the Balkans next week. The cards will be given to Chaplains, hospital officials and welfare officers for distribution to the appropriate NATO soldiers.

Franklin Telecom's subsidiary FNet, a Next-Generation telephone network, is often the only link NATO troops have to their families. Utilizing FNet's VoIP technology phone calls are terminated to all NATO member countries through Franklin headquarters, in Westlake Village.

While the heaviest traffic comes from French, Italian and Spanish troops, FNet's service is also utilized by soldiers from Canada, U.K., Germany, Greece, Ireland, Turkey and the USA.

Franklin has four employees based in the Balkans to monitor, maintain, and repair the company's 15 earth stations, making sure the troops are never without phone service. When the NATO troops were recently moved to a new base for safekeeping, this team was tasked with making sure that their phone service followed.

Four of the earth stations were broken down, converted into mobile units, loaded onto trucks, and transported to the new base camp, at times encountering war-related road blocks.

Franklin/FNet's Balkan operation provides a multi-lingual call center, staffed and available to customers 24 hours a day, seven days a week. FNet's Debit and Calling Card platform offers cards of various denominations in several currencies.

In addition to the 15 earth stations currently operational in Bosnia and the Kosovo border region, Franklin is acquiring another 9 sites. Three stations are also scheduled for deployment in Northern Albania. These expanded services will utilize Franklin's Tempeste System, built around Tempest DVG gateways.

Weaver stated, ``For soldiers, many of whom are halfway around the world from home and family, being able to talk to their loved ones is crucial for maintaining morale.

``Suppose you were a twenty year old soldier, people were shooting at you and your wife was expecting your first baby any minute. Our service can make a huge difference to this guy. We are proud to be a part of the humanitarian effort within this war torn region.''

IDT Acquires Exclusive Patent Rights for Pre-Paid Calling Cards in Europe

IDT to Collect Royalties From Debit Card Competitors

HACKENSACK, N.J.--(BUSINESS WIRE)--June 3, 1999--IDT Corporation (NASDAQ: IDTC - news) today announced that it has negotiated exclusive patent rights for a versatile pre-paid calling card in Europe. Under the agreement, IDT will act as the central clearinghouse for collecting royalties from distributors of pre-paid calling cards covered by the national patents corresponding to European application No. 0572991.

Under the patent, IDT has obtained the exclusive rights to license the use of pre-paid Personal Identification Numbers (PINs) for pre-paid phone cards in Austria, Belgium, Switzerland, Germany, Denmark, Spain, France, United Kingdom, Greece, Ireland, Italy, Liechtenstein, Luxembourg, Monaco, Netherlands, Portugal, and Sweden. The patent also covers the exclusive rights to recharge pre-paid phone cards as well as transfer balances between calling card users.

``We find this patent to be invaluable, and look forward to taking full advantage of all it has to offer,'' said IDT's CEO Howard Jonas. ``We expect to work with existing and start-up telecommunications companies using pre-paid calling card technology in addition to continuing to sell our own branded calling cards.''

Having announced its entrance into the European pre-paid calling card market in 1997, IDT has strengthened its commitment to an expanding portion of the telecommunications market. IDT sells its own pre-paid calling cards throughout the United Kingdom and France, and also co-brands phone cards throughout Europe.

Those interested in obtaining license rights, please call 011-44-171-549-6000.

IDT is emerging as a leader in the telecommunications industry that combines its position as an international telecommunications operator, its experience as an Internet service provider and its leading position in Internet telephony to provide a broad range of telecommunications services to its wholesale and retail customers worldwide. The company provides its customers with integrated and competitively priced international and domestic long distance, pre-paid calling cards, and Internet access. For more information about IDT's services, please visit www.idt.net.

PROMOTIONAL NEWS

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From: Ginger Gragg

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

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