Proposed Changes to USF

Regulators are working on proposals that would change the way the old Universal Service Fund tax is dispersed. The changes propsed center around the distribution of the funds collected. Today all customers pay into this universal service fund and the money is then redistributed to smaller telcos in rural areas.

Porposed Changes:

1) Allowing Broadband and other smaller Telcos a portion of the funds

2) Creating a seperate fund for wireless operators

3) Changing to distribution based on cost and share of business not just equal for everybody and also giving funds to company who proposes the lowest bid for offering services to promote a more competitive environment.

The changes will most likely be open to more discussion and possible alterations but should go into effect sometime in the coming year or so!

Titan Global Holdings Restructures Phone Card and Wirless Groups

Titan Global Holdings, Inc., the parent company for Oblio Telecom Inc., announced yesterday that it was restructuring their Telecom units and getting out of the leased and owned network business and choosing instead to just focus on their core Distribution and Marketing strengths.

It has not been announced who will take over their switching operations (if anyone) or who Oblio will buy it's network services from instead, but it is certain that Oblio and Titan Wireless will now just go back to their original reseller business.

View full report

IDT Aquires Contoling Interest in EGL Oil Shale

If you needed more proof that IDT was looking outside of Telecom for it's future, today's news that IDT has aquired a 75% stake in EGL Oil should solidify IDT's strategy intentions.

EGL, a subsidiary of the private oil and gas company EGL Resources Inc., is 1 of 3 companies with a 10-year lease granted by the U.S. Bureau of Land Management to explore the potential for commercial oil shale production in western Colorado.

The financial details of this transaction have yet to be released.

CrossFone Supercanal Coomercial from Argentina

Argentina phone card commercial

Company Background: IDT Corporation

IDT Corporation

Incorporated: 1990 as International Discount Telecommunications Corporation
Ticker Symbol: IDT
Employees: 2,360
Locations: Newark NJ, Piscataway NJ, Long Island NY, London UK, Argentina, Uruaguay, Peru, Chile, Brazil, Hong Kong, Singapore, India, Japan, Philippines, Australia and other small offices worldwide

Timeline
1990: Starts company, International Discount Telecommunications Corporation, by offering callback services to international clients
1992: Company moves into Hackensack NJ headquarters building
1993: Gets into the carrier wholesale business
1994: Offers Dial-Up Internet access
1995: Company is renamed IDT Corporation
1996: IDT goes public
1997: IDT starts the business unit Net2Phone
1998: UTA, a joint venture with Carlos Gomez, is formed and IDT kicks it's sales of phone cards into high gear
1999: IDT has its first profitable year & spins off Net2Phone as a separate company and IDT relocates it's headquarters to Newark NJ
2000: AT&T buy up shares of Net2Phone for 1.1 billion dollars
2001: IDT buys back Net2Phone shares from AT&T for 92 million dollars and buys Talk America radio syndication network for $3 million... also buys PT-1 rights for 26.3 million
2002: IDT buys Winstar from Bankruptcy court for 42.5 million in cash and stock and creates IDT Entertainment
2004: IDT Energy is formed
2005: IDT buys mobile sharing company Zedge.net and forms new Internet mobile group and also launches TUYO Mobile a prepaid MVNO geared towards Latin American community
2006: IDT buys out all remaining Net2Phone shares and brings it on as a division of IDT & sells IDT Entertainment to Liberty Media, also creates company IDTJets and buys Spanish grocery company Vitarroz
2007: IDT files an anti-trust lawsuit against all of it's main calling card practices claiming deceptive business practices from these companies are hurting the calling card business and sells it's Toucan service and also aquires IDW Publishing

Sources:
http://milo.digitalentropy.com/projects/onaroll/ch14/10.html
http://finance.yahoo.com/q?s=IDT
http://www.fundinguniverse.com/company-histories/IDT-Corporation-Company-History.html
http://www.hispanicprwire.com/news.php?l=in&id=4801&cha=12
http://google.brand.edgar-online.com/EFX_dll/EDGARpro.dll?FetchFilingHTML1?SessionID=RDFQWN0wLt8W7zB&ID=5476635-187215-322877

Do We Really Need Three Trade Shows a Year?

I was flipping through the pages of the most recent issue of the prepaid press and they are heavily promoting their very first trade show, the tppEXPO'08, to be held in Las Vegas from August 19th to August 21st of this year. There are still very details available about the show like who will be speaking and who will be sponsoring but you can keep up with the developments at the prepaid press expo website.

While I understand their motives, unseating the Intelecard folks from their domination, I just feel like this extra expo is a little odd considering we are in a fast shrinking business and should actually be looking to reduce the amount of trade shows not increase them. This extra trade show will only dilute each shows importance. I would rather have 1 big show a year where I know everyone will attend, rather than three shows where people will selectively attend.

The other strange thing here is why not pick a different venue than Vegas? Intelecard will be throwing their Expo there a month or two later... do you think people are going to want to go out to Vegas twice in two months? I for one would be too broke from the first trip!

How Many Prepaid Phone Cards Deliver Full Minutes?

In a recent study conducted by the Hispanic Institute and published in many major newspapers, 45 different phone cards were selected from a variety of companies and tested to see which ones delivered the advertised minutes. To no suprise, only one third of the cards delivered the real minutes and 7 of the cards didn't work at all. In fact 8 of the cards tested delivered less than 50% of the advertised minutes.

The cards that were tested included the following:

• Florida ($5)  Telmex Compaqero, STI Florida, Touch-Tel Hondureqa, Touch-Tel Guatemalteca, Touch-Tel Salvadoreqa, Dollar Phone Coffee Time, Dollar Phone Rey, MPTAFlorida Idol, MPTA Nine, PCI Pilot, PCI Prima and TST Si Pues
• New York ($2)  Diamond Bingo, Diamond Arenque, SDI I Love NY, Lycatel Success, Lycatel Call Me, STI World, RTG Martini, RTG Cocktail and IDT Play Ball.
• Washington, DC ($2)  IDT Boss
• Toll Free ($5)  GEO Florida

You can read the full article here

NJ General Assembly Approves Phone Card Bill S2887

New Jersey now joins Florida and New York state in the battle against the corrupt practices of the calling card industry. Senate President Richard Cody introduced Bill S2887 that would require all minutes for any phone card be available to the customer with no limitation other than deductions for allowed fees and taxes and no expiration unless clearly disclosed on the card or packaging, and advertising. Strict guidelines would have to be followed by the calling card companies in order to remain in compliance.

This bill also goes further than just targeting the phone card providers, it also targets retailers, who could be fined for knowingly selling phone cards that do not deliver "true" minutes.

The bill still requires the Governors signature and if signed by him, would take another 7 months until it takes effect.

The full article can be viewed here

Entrix Commercial for Mi Pueblo - TCN

Spanish language commercial from Telecard Network.

AT&T Go Phone Now Offers Roaming in Mexico

In an effort to better align themselves in the Mexican American market, AT&T announced that their prepaid mobile brand, GoPhone, will now allow it's users to use their phones while traveling in Mexico. The odd thing here is that they will be charging their customers $0.99 a minute for all calls made while in Mexico making renting a mobile phone in Mexico a much more cost effective option especially for heavy users. Nevertheless, it is still a good option to have for those traveling to Mexico... good job AT&T!

Union Telecard Alliance Manages VITARROZ Food Brand

I don't know if this is old news but I just learned that Union Telecard Alliance (UTA), IDT's calling card distribution company is now also managing their ethnic food service business, which includes the Hispanic food brand Vitarroz. I knew that IDT owned this company but it must be recently that they gave the management of this business over to UTA. So now you can buy phone cards and some sugar ridden orange soda at the same time :)

I suppose it makes sense considering the bulk of UTAs success comes with the Hispanic community but it seems like a little bit of a stretch for them to also try and sell grocery items.

InteleCard Expo to be Held in Edison NJ

Like most of you, I have been receiving tons of emails from InteleCard informing me about the spring expo to be held for the first time in New Jersey. While this is old news now, the actual city location is new... The expo is being held in Edison NJ which is just south of Newark. Kind of an odd location considering a lot of the prepaid companies are a little further north in NJ. I would have thought they would be doing it somewhere closer to Manhattan like Secaucus...

This show should be interesting for those of us from the North East!

New Year and New Commercials - La Leyenda from IDT

Here is a Spanish language commercial for an IDT phone card.