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Old 15th November 2006, 03:15 PM   #1

Join Date: Nov 2006
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Default Pre-Paid Calling Cards Any Advice?

Hi All,
I'm interested in starting an pre-paid calling car business, I can't seem to fin much info if it's a good business to get into any advice?
Thanks in Advance

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Old 16th November 2006, 05:16 AM   #2
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I work for a major telecom in the prepaid card division. This is a declining market as it relates to Long Distance. The calling cards have been replaced by "free" long distance on cell phones for those who can afford them. Margins have shriveled to nothing. The traditional market for prepaid LD is low income users, travelers, and college kids. Low income users buy cards as cheaply as possible and may even visit bodegas. No profit there. Travelers and College kids are switching to using their cell phones, so lack of opportunity. Additionally the wholesale clubs (Sams, Costco, BJS) have such low rates compared to other retail rates you will not likely have a competitive product.

Where you might have some luck is in the prepaid wireless business. Still it is a hard sales job, when one can walk into just about any pharmacy, electronics store, or even convienence store and pick up a refill.

Recharge is also a limiter for you. Once someone has a card they can add more minutes using a credit card, rather than buying a new card from you.

There are other prepaid products emerging but most are retail loyalty based.

The calling card industry is not expected to survive more than a few more years. I would not enter into it as a full time job at this point. Unless you live in Alaska or Hawaii, there are opportunities due to pricing regulation and lack of stores carrying prepaid cards.

Things may be different in Europe and Asia markets.

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Old 16th November 2006, 07:21 AM   #3
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Who do you know who uses pre-paid calling cards? There's your answer.

Hey Eric!!


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Old 4th January 2007, 03:55 PM   #4

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I had a friend who did that for sometime. He shut down his business. Very little margins for the effort.


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Old 5th January 2007, 03:36 AM   #5

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Old 8th January 2007, 02:28 AM   #6
Liara Covert

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Hi Yanter.
If you're interested in starting up any kind of business, it makes sense to do some market research. Good for you for asking around. I suggest you check check out Distance Digest website as well as discountlongdistancerates.com Compare these to other prices and to use of voice over internet (i.e. Skype) statistics. The reason why long distance charges are increasingly being "thrown into" mobile packages is because traditional companies are being undercut. If you're looking for profit margins, calling card business may not be what you seek. Check out my website for some alternative ideas. It always pays to look into options.


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Old 22nd February 2013, 03:40 PM   #7
Richard Gere

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I am looking for an online site to purchase prepaid phone cards that can call from egypt and jordan to the US at a reasonable rate. I am also wondering if there is any difference between the different phone cards (mci, sprint, whatever) in terms of quality or are they just all the same. Any information on this would be helpful!

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Old 1st March 2013, 10:17 AM   #8
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Originally Posted by mktgbiz View Post
Who do you know who uses pre-paid calling cards? There's your answer.

Hey Eric!!

With Skype and Facebook, what is the point of pre-paid calling cards?

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Old 19th March 2013, 02:32 AM   #9
Beth Worthy

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Originally Posted by mktgbiz View Post
Who do you know who uses pre-paid calling cards? There's your answer.

Hey Eric!!

Agreed,Yanter go for identifying the demographic parameters for your business which you are entering into. Identify and set your target audience firstly.

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