The Prepaid Press - November 15, 2007 - (Page 1)

The Legal Line Do You Think You Qualify for an FET Refund? Find out here. Page 11 5 Minutes With Daniel Neal, CEO of kajeet Page 10 REAL NEWS, RIGHT NOW! November 15, 2007. Volume 6. Number 11 Also in this issue TELECOM & TECHNOLOGY Caveat Emptor When Negotiating IP Licensing Page 18 WIRELESS Prepaid Wireless Roundup Page 12 It’s a Wrap for Gift Cards By Arlene Hauben Now that the winter holiday season is just around the corner, it’s time for consumers to think about what to buy for friends, family, co-workers, and employees. Analysts say that more than 75% of all consumers are expected to receive at least one gift card this year. So it’s time for retail merchants to put on their prepaid thinking caps. In case retailers forgot, consumers may tire of the same old thing, but they always appreciate convenience. That’s one reason why the gift card market is worth billions of dollars. Gift card malls, as they are known, are ﬁlled with easy offerings from retailer-speciﬁc merchants in every possible category -- clothing and home goods, dining, leisure/experience, airlines and hotels, entertainment, and even music downloads. Cards with credit card logos can be used anywhere. Healthy Growth for Gift Cards Closed loop refers to retailer-speciﬁc gift cards, giving consumers a gift to shop at one store. Open loop gift cards with a credit card brand allow recipients to spend the gift wherever and however they want. “Open loop cards are newer to the prepaid scene, but both segments are showing healthy growth in the U.S.,” said Vance Hodnett, senior vice president research-ﬁnancial services, The Pelorus Group. Closed loop gift card sales hit $62 billion in 2006, according to the latest Pelorus research report, with projections of $140 billion in sales by 2011. Open loop sales reached $8 billion in 2006, with $40 billion in sales projected by 2011. More than one-ﬁfth of gift card buyers in 2006 made their purchase at gift card malls, according to a study by Comdata. More than one-quarter are expected to do so this year. Last year, gift cards proved popular as six in ten people were “thrilled” to receive one, according PAYMENTS A Gift Card Technology Guide Page 22 to the Discover Card Gift Card Survey. Recipients preferred general purpose gift cards over storespeciﬁc gift cards, according to the survey. “Gift cards meet so many shopping and giftgiving needs -- they’re a time-saver, they’re a convenient means of getting friends and family what they really want, and they’re an easy way to make the holidays less stressful,” said Margo Georgiadis, Executive Vice President and Chief Marketing Ofﬁcer of Discover Financial Services. Georgiadis continued: “Discover Card offers customization options such as personalized embossing on the gift card plastic and greeting cards Continues on page 24 A Niche in Time by Gene Retske That prepaid wireless has arrived is indisputable; statistics show that nearly a quarter of all prepaid wireless recharges are now done online. And, the number is growing. It has been said many times, that prepaid is not just for the credit challenged anymore. Although those without the credit to get traditional cell phone services are growing in number, it does not account for the surge in interest. Some of the other reasons that consumers are turning to prepaid wireless include: • Contract rate commitments. The average cellular subscriber uses less than 300 minutes per month. Most contractual wireless arrangements are for much more than 300 minutes. Those who are lighter users stand to save a significant amount of money by not having to pay for unused minutes. • Predictability. Prepaid wireless plans don’t surprise the consumer, because they are aware that each use of the phone will result in a charge. Consumers can budget their expenditures easier when the cost is tied to the actual usage. • Control. Since the cost is tied directly to the usage, the consumer can budget the expenditures by controlling the usage. There is no risk of being shut off, since the consumer can just Continues on page 13 20533 Biscayne Blvd., Suite 1142. Aventura, FL 33180. US Tampa, FL Permit No. 3311 PRSRT STD U.S. Postage PAID Online Prepaid Wireless Recharge http://www.pelorus-group.com/

Table of Contents Feed for the Digital Edition of The Prepaid Press - November 15, 2007

The Prepaid Press - November 15, 2007 Online Wireless Recharge It's a Wrap for Gift Cards Contents GENERAL PREPAID Prepaid 101: Merchandising Regulatory Rundown: Wireless Broadband, LNP, Internet Taxes, and Stored Value Legislation Guest Editorial: Honest Minutes: "The Times They Are A-Changing" 5 Minutes With Daniel Neal, CEO of kajeet The Legal Line Prepaid Wireless Roundup WIRELESS Wireless in Brief 011 Mobile Launches Mobile International Dialing Hop-on Adds GSM Phone to Product Line Virgin Mobile USA Launches New Services kajeet Adds to Handset Line MarketStar Publishes Mobile Phone Usage Study Nokia and Cellfire Team Up Verizon Selects Firethorn iVisionMobile Launches Messaging Platform Sprint Expands "Unlimited by Boost" INTERNATIONAL Spot Rates NOMAD Brings MasterCard EMS to Europe R&M Finds Potential in Africa International in Brief TELECOM & TECHNOLOGY Caveat Emptor When Negotiating IP Licensing T&T in Brief MySpace and Skype Ink Deal Octastic Announces New Media Gateway DSP Pactolus Selected by Global Crossing Tadiran Announces New Loyalty Incentive Program Oblio Telecom Launches New Prepaid Products Total Call Enhances Prepaid Calling Cards PAYMENTS A Gift Card Technology Guide Pinnacle and PaySpot Roll Out POS/Prepaid Solution TIO Networks Announces Membership Program TransFund$ Partners with TruckersB2B AMR Finds Retailers Returning to Main Street Payments in Brief Diebold to Offer Prepaid Gift Card Technology InComm to Sell nFinanSe Discover Cards iVisionMobile Offers Retailers Mobile Payments i2c to Offer Stored Value Webinars Mobilians Starts U.S. Mobile Payments Operation NetSpend Increases Savings Program Interest EXTRAS Classifieds Contact Us Our Advertisers

The Prepaid Press - November 15, 2007

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