Consumer Payment Card News

Prepaid Phone Card Rates Drop

Competition in the prepaid phone card market is driving down prices for consumers. Yesterday Florida-based Transco Research Corp. cut the price of its card product to 9 cents per minutes for domestic calls. One year ago most prepaid phone cards charged between 25 and 40 cents per minute. This year a number of players have lowered rates to the 15 cents per minute range. Transco also offers a regular calling card program with a domestic rate of 19 cents per minute. The company dispenses its cards through ATM-style vending equipment and has a master distributor agreement with Frontier Communications.

FULL STORY:

Transco Research Corp. (NASDAQ:BB – news) has cut the price of its local access long distance prepaid phone card calls to 9 cents per minute from South Florida throughout the U.S., said Guy Cohen, president.

And its international card offers 800-access at competitive rates and a domestic rate of 19 cents per minute.

Based on shipments and orders for Transco’s ATM-style prepaid phone card vending equipment and its prepaid cellular phone products, Cohen projected for the fiscal year ending June 30, 1998 revenues of approximately $12 million, and earnings per share of approximately $.75.

He also announced the acquisition for stock of Debit Distribution Inc., of Fort Lauderdale, Fla., a prepaid phone card and cellular phone master distributor having agreements with several long distance carriers, including Frontier Communications.

And Cohen announced that Transco’s newest product, “The Cell Phone to Go” is now available, with national coverage. He also announced the opening of the firm’s Florida office at 1000 McNab Road, Fort Lauderdale.

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