The Prepaid Press - December 15, 2007 - (Page 20)

TELECOM & TECHNOLOGY December 15 · 2007 - 20 IDC Sees Tech Spending Slowing in ‘08 Moderate Growth Still Seen FRAMINGHAM, MA (December 6, 2007) IDC, a major technology research company, has released a new study that says, while there will still be moderate growth in global technology spending in 2008, it will be at a lower rate than in 2007. The main reason for the slow down will be a U.S. economic downturn that could hamper computer hardware sales. The report by IDC estimates spending growth for 2008 to be between 5.5 percent and 6 percent in 2008. In 2007, the projection is that the technology growth rate will be down from about 7 percent this year. For the U.S., spending growth will dip to between 3 and 4 percent in 2008, down from 6.6 percent in 2007, according to the report. IDC predicts that hardware vendors will compensate by targeting faster-growing markets, like emerging markets and small and midsize businesses. IDC also said that the slow down could spur more mergers and acquisitions. Source: IDC (www.idc.com) New Prepaid Association? from page 1 The ITA also provided a forum where industry participants could convene and discuss industry speciﬁc issues, without fear of running afoul of federal anti-trust laws. At one point, the ITA had over 1000 members, ranging from industry giants, like AT&T, MCI and Sprint, to small entrepreneurial startups. IPCA for anti-trust reasons. Long time industry participant, Richard Harding, became the chairman of IPCA. Harding set a priority on getting new members and revitalizing the organization. A new board was formed, with this correspondent replacing Veres as the media representative. Beginning in mid-2003, and continuing through 2004, the IPCA tried to grow their membership, but was unable to make any real progress. In the meantime, IPCA’s debts began to grow. By 2005, membership was on a precipitous downslide, and the entire organization had become moribund. Very few dues had been collected, and the Board was considering closing down. In early 2005, meetings were held with Quality Publishing to see if a deal could be struck to rescue IPCA. But, as the negotiations progressed, Quality’s role became more active, putting Quality in ﬁrm control of IPCA, and making most of the day-to-day decisions, while IPCA was responsible for paying all its own expenses, in addition to the expenses of Quality for managing the association. When this was presented to the Board in August 2005, the Board split, but a majority were against the proposal. However, on August 22, Facebook Goes Mobile New IVR App Enables Mobile Phones LOS ANGELES, CA (November 7, 2007) IVR Technologies, Inc has integrated a media and billing server into Facebook’s core mobile services, “Talking SIP,” an enhanced services and real-time billing solution. With the introduction of the mobile version of the callme application, Facebook users can now call their friends through the callme application when using their mobile phone. Users load the callme application from their computer onto their proﬁle page either by invitation, referencing a friend’s instance of the application, or from the application directory in Facebook. Mobile Facebook users then log their mobile browsers into the Facebook login. They can trigger calls directly from their friends’ proﬁle pages, once their friend has the callme application installed. Enabling the callme application for mobile users gives Facebook users the ability to communicate via voice without incurring any long distance charges. The callme application does not disclose either party’s telephone number, does not require any special hardware or software. Source: IVR Technologies (www.ivr.com) A uniﬁed voice for the prepaid calling card industry could help the entire industry in self-policing and a single voice advocacy… By late 2000, the impact of wireless, particularly prepaid wireless, was being felt by ITA, so the chairman, Bob Charish, who was also the Vice President – Prepaid Services for Viatel, announced that it was changing its name, and its focus, to accommodate a wider range of prepaid services. The ITA would become the International Prepaid Communications Association, or IPCA. Announcing the change in name in December 2000, Charish said, “It is important to note that the fact of prepayment for telecom services means different regulatory and tax environments, and different marketing approaches. Our association is in a unique position to aid the growing prepaid communications industry.” Executive Director Howard Segermark said then that the IPCA would ﬁrst address “fair regulations and equitable enforcement.” After that, the IPCA would turn to consumer education and protection. IPCA’s periodic education seminars had grown, and started to take on the characteristics of a trade show. The ITA 2000 Conference and Exposition had nearly 20 sponsors and a large number of attendees. Quality Publishing, publisher of InteleCard News and Expos, proposed to IPCA that they combine their efforts, offered to join IPCA, and provide them a booth at Intele-Card shows. The annual dues for Quality were set at around $2000. The deal was struck and IPCA’s trade shows were curtailed, under the terms of the agreement. Quality’s president, Laurette Veres, sat on the Board of IPCA. CVT and Total Call Settle IDT Lawsuit Two More Defendants End Legal Action While Total Call and CVT have denied the allegations in IDT/UTA’s complaint, the companies have agreed to terms of the settlement. Pursuant to the settlement agreement, the companies have agreed to continue their practice of delivering 100% of minutes of telecommunications time stated to consumers in voice prompts and advertising. Plaintiffs IDT and UTA will similarly continue such practices. Pursuant to the terms of settlement agreements reached earlier this year, defendants that have settled to date have similarly committed to adhere to such practices. IDT/UTA’s lawsuit against the remaining defendants is still continuing in federal court in Newark, New Jersey. Source: IDT Telecom, Inc. (www.idt.net) Union Telecard Alliance, LLC (www.uniontelecard.com) CVT Prepaid Solutions (www.cvtprepaid.com) A new association will face a different set of challenges. In addition to the external challenges of DAC, FCC regulation, etc., there will be internal challenges to face. a press release was issued by Quality that an agreement had been signed. Quality’s press release said, “It is the intent of QP to assist the IPCA in building its membership by providing greater information ﬂow as well as providing a single source for keeping members informed of changing regulatory issues.” But, that was not to happen. This correspondent left the Board at that point, as did most of the existing Board members. There was a session at the Intele-Card Expo Fall 2005 show put on by Harding and Segermark, but nothing more appeared to happen as a result. GREAT NECK, NY, NEWARK, NJ and LOS ANGELES, CA (November 29, 2007) CVT Prepaid Solutions Inc. and Total Call International have reached private settlements with IDT Telecom, Inc. and Union Telecard Alliance, LLC. On March 8, 2007, IDT/UTA commenced a lawsuit against several prepaid calling card companies alleging false advertising and deceptive trade practices. New Association Faces Immediate Challenges A new association will face a different set of challenges. In addition to the external challenges of DAC, FCC regulation, etc., there will be internal challenges to face. For starters, will the new association include IDT? Without one of the biggest providers, the new association could take on an anti-IDT tone. IDT has expressed interest in joining. IDT was contacted, but declined to comment at this time. We asked one of the reputed insiders in the formation of the association, Michael Acevedo, CEO of CVT Prepaid Solutions, to comment on the rumors. Acevedo said, “There have been discussions with some parties about the formation of an association, but nothing has been ﬁnalized as of today. There may be an announcement soon, but I can’t tell you when.” TPP applauds the formation of a new prepaid calling card association. We have opined frequently in the past about the need for such an organization. We sincerely hope that the new association will learn the lessons of the past, and thus, not repeat the mistakes. The Decline and Fall of IPCA IPCA grew as the industry grew. It was not able to make the inroads into wireless as planned. Many of the prepaid providers in 2001 were the primary carriers, who gravitated to the CTIA, Cellular Telephone Industry Association. The commonality of interests between prepaid calling cards companies and prepaid wireless providers was not as coherent as ﬁrst imagined. Membership in IPCA began to decline after 2001, partly because of a general downturn in the telecom industry, and partly because of Wireline Capex Grows 7% in Third Quarter But Ovum Report Says Wireless Dives BOSTON, MA (November 14, 2007) Ovum RHK has posted its analysis of third-quarter 2007 revenue and capital spending by North American network operators. Wireline operators increased capital spending by 7 percent versus the third quarter of 2006, while mobile operator capital spending plummeted 18 percent, according to the report. Revenues remained on trend, with mobile revenue growing nearly 10 percent, and ﬁxed revenue basically ﬂat versus last year. “Third-quarter growth in wireline capex provided welcome relief to equipment vendors, who experienced strong growth in the optical networking and switching and routing segments,” said John Lively, Vice President, Forecasting, at Ovum RHK. “Mobile capex hit a real pothole, led by Sprint Nextel. With mobile capital intensity at a seven-year low, however, there is room for a rebound in 4Q07.” 3Q07 highlights for North American network operators: • Wireline revenues = $43.8 billion, up 0.5% versus 3Q06 • Wireline capex = $7.4 billion, up 7.4% versus 3Q06 • Mobile revenues = $37.9 bill http://www.idc.com http://www.ivr.com http://www.idt.net http://www.uniontelecard.com http://www.cvtprepaid.com http://www.ovum.com

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

The Prepaid Press - December 15, 2007 GENERAL PREPAID 2007: Prepaid in Review New Prepaid Association? Contents A Funny Thing Happened on the Way to the Forum Regulatory Rundown: FCC Enforcement, SEC Cracks Down, VoIP Hacking, & Wireless Regulation The Legal Line WIRELESS Prepaid Wireless Roundup kajeet to Offer Horoscopes, Jokes and Trivia Redknee Extends Converged Billing Solution AT&T GoPhone Offers Roaming Option in Mexico Total Call Mobile Introduces Holiday Bonus Wireless in Brief INTERNATIONAL Spot Rates Keycorp to Distribute Hypercom in Canada International in Brief Mobile Communications in Latin America Gets a Leg Up TELECOM & TECHNOLOGY T&T in Brief Phone House Launches New Card Facebook Goes Mobile CVT and Total Call Settle IDT Lawsuit Wireline Capex Grows 7% in Third Quarter PAYMENTS Transcard Selected for Discover Payroll Cards Vesdia and MXT Card Services Form Alliance The Giving Tree Card Gives Back MasterCard Launches Prepaid Travel Card Payments in Brief 7-Eleven Pushes Video Games Capital One and NetSpend Merger Off i2c Launches New Release of Campaign Manager Prepaid Card Dispensing from ATMs Credit Card Design Competition Begins NRF Says Gift Cards Gaining Popularity EXTRAS Classifieds Contact Us Our Advertisers

The Prepaid Press - December 15, 2007

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