Phonecards On-Line© is Published by Alan Cohen

October 17, 1999

Issue #181

Current Circulation: 3,400+

In This Issue:

Reaction to Commentary

New Phone Card Area on the Web

Expo Montreal 1999

Planter’s Update

Press Releases

Promotional Offers

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

NEWS / COMMENTARIES

Reaction to Commentary

The commentary last week was very well received, and brought in quite a few responses. Most people gave permission for their comments to be published, so here are some of them. I’ve lost track of who gave permission to use their name, so I will publish all without attributing the author. Thank you everyone for your responses, I hope everyone enjoys reading these as much as I have.

Comment 1

"I have to agree that the phonecard market is not what it used to be as in past times, however I believe that the current market is what the market should have been like, when the hobby began. Gone now are the crazy speculators, at least for the moment, that ran the price of phonecards up higher than they should have been on alot of issues. I've always told

collectors to buy what they like and never think of this hobby as an investment. Thank God for that!

I do see new collectors coming into the marketplace and that is a good sign for the hobby,

but I expect it to take the true and slower path much like the more solid hobbies that have been around for years. Quality phonecards still seem to be in demand and what was Rare

is still Rare, and what was common, for the most part is still common. Suprisingly, some cards that were once common have dried up and are bringing slightly higher prices, but this is mainly an exception and not a rule for the moment. There are still a few select issues that have sold for book or more, however as a rule, most are being sold below book value."

Comment 2

My experience with the hobby has gone from buying mint and not using the time ( which got a little costly to sit on the shelf) to using the time and saving the cards either through promo or direct purchase to now trading internationally via contacts through the internet. This has combined my love of geography, travel and meeting new people. I would like to find other collectors in my area and have not had success at that.

Comment 3

About a collecting of telecards in general - processes, considered by you, have or took place at us in Russia, in many respects they are similar, basically all goes on one of a path of development. The popularity of a collecting of telecards in Russia of a gradually grows.

Comment 4

Interesting comments you have on the phonecard market, and the USA market also reflects what has happened in New Zealand.

Many remote access companies have come and gone. Although they were never into the collector market in a big way, their cards are now sort after.

Telecom New Zealand is still the big player and their change to chip cards has had a lull in the number of cards being produced as everyone waits for the changeover. Recent collector sets produced have proved popular although the number being released has been reduced dramatically since the heady days of a few years ago.

There are still a few full time phonecard retailers here who are obviously making a good living. I have found that I'm still selling a steady number of cards, but the market is more focused - either very cheap cards, or particular themes - puzzle sets, first issues and Zodiac cards are keenly sort after by the serious card collector. Disney (especially Winnie the Pooh) is popular, although I suspect many of these are being bought by Disney collectors rather than card collectors.

Comment 5

I collect any thing to do with phonecards( Chip, prepaid, GSM and others) I also collect door cards for Hotels. I am also a dealer for Jordanian phonecards. I have been in Israel few days ago to exhibit my cards ( Jordanian only) in an exhibition called Cardin 8 in Tel Aviv. I was the only Jordanian ever to go to Israel for the phonecards business. I sold many cards. Also, I sold Coins and Stamps (Jordanian). I am a collector for coins and Stamps for many years. But now I am concentrating a lot on phonecards. It is a new Hobby in Jordan and in the Mid east. Also, it is a huge hobby in Israel and Europe. It is the new millennium hobby. I disagree with you that the hobby is fading away. Maybe in the US. but that's only because you do not have chip cards. A country without chip cards can not be a strong country for collectors.

Here, it is getting bigger and bigger. I have a web site and I get many people want to

swap and buy cards from me. I have new customers very month. I think that this hobby will be the biggest thing ever in history. People like to collect those fancy plastic things. It will be the new hobby for the new millennium. Wait and see.

Comment 6

For some time I wondered what had become of all the re-sellers who contacted me all

the time. I assumed the market was bottoming out. I have quite a collection of phone cards, and continue to obtain promo ones.

I am so frustrated by phone cards that I USE lately. Over half of them have either gone out of business, or have changed their access phone numbers.

I will continue to hold onto them, just for the collectability of them, I never thought I'd "get rich" having them. They are as nice to "look at" as sports cards, etc. !!!!!

Comment 7

I think much of the problem in our hobby came because it wasn't developed naturally. As a result collector's entering this hobby had to spend large amounts of money just to have some of the hot issues. The result was few collectors. Furthermore used issues were frowned upon and used domestic issues unavailable.

I remain optimistic because I believe the natural development is now taking place. I also think SVC's could have a positive impact on this industry as well. Card technology is just beginning. People seem to forget these days that success comes over time. I can't think of any collectible market which lasted a long time after developed rapidly. Thankfully we didn't ruin an only chance situation. We can sit back and watch it develop.

Comment 8

Your summary of the USA scene applies to much of the rest of the world. In many countries during the 1990s, numerous exploitive issues fueled speculative markets and when the bubbles burst the markets for phonecards collapsed in a matter of weeks.

In my experience at least 95% of the New Zealand and Australian markets disappeared. There has been no sign of any significant recovery in these markets during the last 5 years. The 5% who have continued collecting have found the hobby to be very rewarding. A handful of full time dealers remain but they operate on the world market.

There is probably little point in waiting or hoping that the phonecard market will recover to the over-heated levels of the early 1990s. The card market has continued to evolve and

phonecards are now just a part of the larger market for stored value and remote memory cards.

At the cheap end of the market there is a demand for what you call "pretty pieces of plastic" and common, low priced stored value cards.. Further up the ladder there is a surprisingly robust market for attractive thematic or topical cards that are based on stored value. This market is largely based on the hundreds of millions of Japanese cards that have been produced since the mid 1980s.

Cards in this category often sell for US$3 - US$10. However the most sought after cards on major themes such as Coke and Marilyn sell for hundreds and even thousands of dollars.

At another level there is demand by a few specialist collectors who seek to complete collections for individual countries. This may also involve considerable cost.

Yet another group of collectors build up collections based on one card per country, or one card per system per country. Still others concentrate on first issues.

The evolution I mention sees stored value phonecards being used to make other small purchases. This can be vending machines, at laundromats and in parking meters. So the phoncard becomes a cash card.

Another major development is the emerging smart fare payment systems whereby the smartcard used to pay your fare on the bus, train, ferry or tram can also be used as a cash card and pay for phone calls. These cards can also be multi-function and carry a

loyalty application and allow access.

On the banking side there have been several well publicised trials of chip based moneycards. There has been much gloating in some quarters over the lack of success but for collectors,

shortages of important trial cards means there are great collecting opportunities. These cards can also be used to make phone calls. This was the situation in Atlanta and in the

Australian trials on the Gold Coast. Some phonecard collectors have moved into these e-cash cards.

Today, there seems to be a small but strong international collecting base. In the absence of publications the Internet has become an important tool in the development of the hobby but many collectors are still out of its reach and swap and trade with contacts made during the earlier years of the decade.

The next decade promises to be full of interest as the stored value cards, based on chip technology become more widespread outside Europe. Many of our phonecards will not be so obvious as they become e-cash cards or smart fare payment cards or bank issued

disposable, standalone or multi-application cards.

New Phone Card Area on the Web

From: Theresa McCandless

We'd like to personally invite you to join the new AToyholic Collectibles

Group on the internet, featuring Our very own PHONE & MONEY CARD SECTION. We >can now buy, sell and trade for FREE in our chat room, auction board or discussion boards.

Here is the Link to our PHONE & MONEY CARDS SECTION, Please visit us

and sign-up today:

http://www.atoyholic.com/a-phone.htm

Our aim is to help collectors with all their collecting needs. We

encourage everyone, collectors and dealers, so that we can all find out

about all those other good sites on the internet. This site is suitable

for all ages and our facilities are moderated by experienced volunteer

staff. This is not a commercial site and joining is free.

We invite you to list your site in our website directory (basic listing is

free) and submit interesting information and pictures from your own site

for us to promote - we will give full credit for pictures and a link on our

page to your site for items selected for the member feature.

Our site also has discussion boards, an auctions board and a chat room

available for your use. I hope you can join us and help us make this one of

the best sites on the internet for all of us Phone and Money Card Collectors.

Expo Montreal 1999

Here is some information about the upcoming show in Montreal, Quebec. Several dealers will be set up there. I wish I was attending! Here are the details:

Sunday November 7th,1999

Hotel Maritime Plaza

1155 Guy Street, Montreal, Beaupre Room From 9:00am to 5:00pm

>Auction at 4:00pm

Info. Marc Binette (450)961-7000

mbinette@videotron.ca

web:http://www.total.net/~danboyer/ctq.htm

Planter’s Update

About the Planters NASCAR phonecards that Steve Eyer contributed in POL 179: You need a form (available from www.planters.com) and a dated receipt from 6/1/99 to 12/31/99.

From: John Slovak

PRESS RELEASES

SPRINT ANNOUNCES BRAND TRANSITION FOR PREPAID CARD

New product to carry Sprint name instead of Spree

Kansas City, Mo., October 1, 1999 -- If you're heading over to your favorite convenience store to purchase a Spree prepaid Foncard, be ready for a double take. Spree cards will gradually be replaced by a new Sprint prepaid calling card - the Sprint Prepaid Phonecard. In addition to the new name, the Sprint Prepaid Phonecard will have a new look and will offer consumers a convenient recharge option for adding more minutes.

Why the change? "Consumers and retailers know the power of the Sprint brand, and they recognize our logo," said Keith Gallagher, director of prepaid card marketing, Sprint. "The new prepaid card design is a great way for us to leverage that popularity and identification."

And Sprint's popularity can be defined by a number of favorable corporate personality characteristics. According to a survey by Yankelovich Partners, both Sprint and non-Sprint users mentioned friendly, dependable, caring and flexible when describing Sprint. Residential users also highly rated these Sprint attributes: a company they'd like to do business with; a company that is easy to do business with; and a company that is in touch with life today.

"It's more than just communication and it's more than just marketing," said Gallagher. "A successful brand links these positive consumer perceptions so that they become the defining properties of a product or service. We get that kind of linkage when we connect our prepaid card more closely to the Sprint brand."

"Research proved the power of our brand in the prepaid market," said Kathy Fitzke, retail marketing programs manager for Prepaid Research. "In fact, in another study, three times as many prepaid calling card users described the card as a Sprint card rather than a Spree card."

The new card design includes Sprint's familiar red and black colors and will visually emphasize the number of minutes available on each card and distinguish between denominations.

"It's got to be easy for consumers to understand how many minutes they are actually getting, while they enjoy the conveniences associated with prepaid calling," said Gallagher.

In October, Sprint will begin offering "purchase refresh" or a rechargeable minutes option for its cards. Card users can simply call a toll-free number and use a major credit card to add more minutes to their

existing card.

The Sprint Phonecard, available at more than 30,000 retail outlets including the Sprint Store at Radio Shack, Sprint PCS stores, grocery chains and discount merchandisers, includes dollar denominations of $5, $10, $20,

$30 and $50.

Other changes with the Sprint Phonecard include the elimination of the $100 card and more simplistic verbiage on Instant Activation and Exchange. There will be new point of purchase kits (available in English or Spanish) with a fresh new look. Kits include a poster, counter mat and door sticker.

The transition from Spree to Sprint is occurring in phases and should be complete by the end of the year. This approach will allow retailers to sell current inventory before ordering new cards.

Sprint, the first long-distance carrier to introduce the retail prepaid card in 1993, has been an innovator in the prepaid arena and continues to adapt its products to fit the calling patterns of prepaid card users.

Prepaid sales are projected to grow close to $3.5 billion in 1999 and nearly $4 billion in 2000, according to a recent Convenience Store Decisions article including research from Atlantic-ACM, a telecommunications market research and consulting firm.

Clariti IP Services is Awarded Contract for Ricky Martin and MDO, Menudo, Phone Card Series

PHILADELPHIA--(BUSINESS WIRE)--Oct. 13, 1999--Clariti Telecommunications International, Ltd. (OTC:CLRI - news; ``Clariti'') today announced that its business unit, Clariti IP Services, has been awarded a contract by AGH International Group, Inc. (``AGHI'') for the worldwide distribution rights to supply telecommunications and prepaid phone cards of Ricky Martin and MDO, previously known as Menudo. As part of the agreement, Clariti IP Services will promote sales of the official Ricky Martin and MDO phone cards on the Clariti IP website.

The Ricky Martin and MDO phone cards will be marketed and distributed by AGHI through major retailers and distributors in the United States, followed by global distribution in the near future. A full global marketing campaign will be developed, for additional markets which have displayed a very strong interest in Ricky Martin and MDO, including Mexico, South America, Puerto Rico, and China.

In a special promotion, more than 100,000 MDO cards will be produced, and will be distributed in a commemorative magazine and at other promotional events. The commemorative magazine is being offered at the NASCAR Winston Cup and Busch Series

Races at the Homestead - Miami Speedway on November 11-14. MDO will be singing the National Anthem to open the Winston Cup race on Sunday and Clariti's logo will be on the race jackets worn by MDO during the Anthem. Clariti will be creating the poly bags that every commemorative magazine will be encased in and will have the Clariti name, logo and other Clariti IP promotions on the bag. In addition, to the NASCAR event, MDO will make an exclusive appearance at the Clariti IP booth at the Intelecard Show in November to sign autographs and promote the sales of the cards.

Eric Fixler, President of Clariti IP, said, ``We are very excited that Clariti IP has been awarded the contract by AGHI to supply phone cards and telecommunications for the Ricky Martin and MDO phone card series. AGHI has provided us with the opportunity to extend our phone cards into new markets and we look forward to the continued growing demand that this program is expected to generate.''

Both of these artists are among the most popular Latin recording acts in the world and have achieved great success and global appeal. Domestic and international points of distribution have been established in a number of the markets that these artists have large followings including the U.S., Mexico, Puerto Rico, the Caribbean and South America.

American Respiratory Alliance Offers Santa Phone Cards

PITTSBURGH, Oct. 15 /PRNewswire/ -- The American Respiratory Alliance of Western Pennsylvania is offering a fun twist to the holiday tradition of writing to Santa.

The Santa Interactive Phone Card allows children to call the North Pole, and allows parents to eavesdrop on the conversation by calling the same number and punching in a particular code later.

The concept was developed exclusively for the Respiratory Alliance, formerly the western Pennsylvania affiliate of the American Lung Association.

``We thought it was a great idea. Children love to talk on the telephone, and they love Santa Claus,'' said Christine Weaver, executive director of the Respiratory Alliance. ``And with the phone card, the children won't have to wonder if their letter made it to the North Pole.''

The phone card is one of the new fund-raising efforts the American Respiratory has developed. The American Respiratory Alliance, which is the only organization serving the lung health needs of western Pennsylvanians, no longer receives funds from national fund-raising campaigns.

The phone cards are available at a variety of locations, including Phar- Mor stores and Sam's Clubs, and by calling the American Respiratory Alliance of Western Pennsylvania at 800-220-1990 or 724-772-1750.

The American Respiratory Alliance was founded in Pittsburgh in 1904 to fight tuberculosis and now serves all western Pennsylvania residents who suffer from chronic lung disease. Some of the Alliance's programs include Breathing Partners, summer asthma camps for children, No Butts About School, tuberculosis education and adult smoking cessation and prevention programs.

Programs and services remain the same as those provided before the Alliance became an independent organization in January 1999.

PROMOTIONAL OFFERS

None Submitted

Until Next Time,

Alan

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Phonecards On-Line© is published by Alan Cohen. It is a weekly newsletter devoted to phonecards - Current news, viewpoints, and reviews of new issues.

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