The Prepaid Press - March 15, 2008 - (Page 1)

5 Minutes With Terry Maher NBPCA Counsel Page 6 FREE Subscription for Prepaid Industry Professionals. Electronic and Print Versions Available www.prepaid-press.com/subscribe The Prepaid Press Real News, Right Now! REAL NEWS, RIGHT NOW! March 15, 2008. Volume 7. Number 3 Also in this issue PAYMENTS Web Streamlines Prepaid Page 20 AT&T Strikes Back By Gene Retske AT&T Mobility, the biggest US wireless company, is going after handset traffickers in Federal court. In the suit, filed February 5, 2008 in the Northern District Court of Texas against Wireless Exclusive USA, LLC, based in Dallas, TX, AT&T says that the damages of the trafficking exceed $76 million and also names 50 unknown “John Does” and 50 XYZ Companies, who AT&T said are involved in the scheme. This latest suit by a US prepaid carrier against those who purchase heavily discounted handsets intended for use by its wireless customers, is the latest in a series of attempts by prepaid wireless companies to stem the losses due to the trafficking of their prepaid handsets. The international market for repackaged handsets is very large, and their ubiquitous availability in retail locations makes them tempting targets. AT&T notes in the suit that federal courts have recognized previous suits by others that this activity violates civil laws. Handset Traffickers Targeted by Federal Suit of Wireless Exclusive. AT&T said that the practice, which it called “Illicit Bulk Resale Scheme,” resulted in profits for Khoja and other unnamed co-conspirators. The suit said that the defendants bulk sell and ship the modified and repackaged handsets to other coconspirators, including buyers outside the US. As evidence, AT&T said that “massive quantities” of empty GoPhone packages and materials have been “observed” in and around the defendants’ business. “I wonder if AT&T, for whom the name ‘dumpster diving,’ was created, is now engaging in the practice themselves,” asked one unnamed attorney. The practice involves buying handsets from prepaid wireless carriers, which are sold at a heavy discount from carriers like AT&T Mobility, TracFone, T-Mobile and Virgin Mobile. They then remove the retail clamshell packaging, strip logos and other identifying marks, reprogram, “hack” the sets and sell them in Latin America, Asia and the Middle East at a premium. AT&T’s suit maintains that this is in violation of trademark law and other statutes, including breach of contract, false advertising, unfair competition, tortuous interference, Continues on page 12 CALLING CARDS The Splitting of a Titan Page 13 RETAIL FOCUS Kiosks Change the Face of Prepaid Page 23 Illicit Bulk Resale Scheme Named in the suit, in addition to Wireless Exclusive, was Moiz Khoja of Dallas, who the filing said was registered to do business in Dallas County under the assumed name Roman Forum Theme Highlighted Staff Report Continues on page 6 20533 Biscayne Blvd., Suite 1142. Aventura, FL 33180. US Been to a toga party recently? No? Well, come August, The Prepaid Press Expo ’08 will feature one. The Expo, produced in cooperation with The Prepaid Press, will offer a comprehensive trade show on all the disciplines in the prepaid services industry, including calling cards, prepaid wireless and payments. tppEXPO’08 will be held at Caesar’s Palace, in Las Vegas, August 19 through August 21, 2008. The Expo theme will capture the energy of the Forum marketplace of ancient Rome. Representatives will be in attendance from every branch of prepaid, from telephony services like long distance calling cards, to prepaid wireless, payments, and gift and branded cards. Because prepaid is rapidly growing and dynamic, the Expo has been designed from the ground up to support the needs of the industry. tppEXPO’08 is the most revolutionary concept in trade shows since the Forum of ancient Rome, two thousand years ago. Just like that central mar ketplace, the Prepaid Forum at tppEXPO’08 recreates this marketplace of ideas, products and opportunities. Even the design of the exhibit hall, the Prepaid Forum, will have a unique layout to maximize the interaction of exhibitors and attendees. The center of the exhibit hall will feature the Imperial Rostra, a center stage for product demonstrations, prize drawings and other special features. “The Forum theme is a perfect Tampa, FL Permit No. 3311 PRSRT STD U.S. Postage PAID tppEXPO’08 Slated for August 19-21 http://www.prepaid-press.com/subscribe

Table of Contents Feed for the Digital Edition of The Prepaid Press - March 2008

The Prepaid Press - March 2008 tppEXPO’08 Slated for August 19-21 AT&T Strikes Back Contents The Retske Report: Net Neutrality 5 Minutes With Terry Maher, NBPCA Counsel Regulatory Rundown: FCC Enforcements Prepaid Wireless Roundup Prepaid Wireless in Brief tppEXPO’08 Spotlight BlackBerry Prepaid Option to be Offered Virgin Mobile USA Ringbacks Growing The Splitting of a Titan The State of Prepaid Technology: Part II – The Other Prepaid Calling Spot Rates Calling Cards in Brief IVR and Stratus to Offer SIP Platform PhoenixSoft Completes Integrated IP Transcoding The Legal Line Web Streamlines Bill Pay & Prepaid Distribution Travelex Debuts New Foreign Currency Packs TSYS and Telrock to Provide Mobile Solutions Payments in Brief NBPCA Offers Tips to Fight Money Laundering Hypercom Responds to Ingenico Inquiry Kiosks Change the Face of Prepaid Prepaid 101: Prepaid Wireless Coinstar to Expand Centers in Wal-Mart Locations Meta and MoneyGram Partner NRF Battles Retail Crime Retail Focus in Brief Our Advertisers Contact Us

The Prepaid Press - March 2008

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