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THE GOODS : Calling Cards : With their combination of technology and artistry, prepaid phone cards are collectibles you can put to good use.

March 10, 1995|CONNIE KOENENN | TIMES STAFF WRITER

Bill Kandel, a retired physician, studied the array of wallet-sized plastic cards spread out before him. They were richly illustrated, some with pictures of Santa Claus, others depicting Olvera Street and abstract pastel Los Angeles scenes. Each had the Pacific Bell logo.

"Is there going to be a limited number of these?" Kandel asked.

"They're very special," replied Chuck Wills of Pac Bell. "This is a limited test-market collection."

Kandel bought a handful of $5 and $10 cards. "Pac Bell just started issuing cards, so these will be collectors' items," he said.

The Pacific Bell Prepaid Phone Card booth was the place to be on opening day of the TeleCard World West Conference and Exposition last weekend at the Los Angeles Convention Center.

Telecards--prepaid phone cards--are being hyped as the hottest new collectible of the '90s, prized for their combination of technology and artistry.

"It's another step toward a cashless society," said Kandel, who has been collecting telecards for several years. "What I like is that the cards are functional and also a beautiful item. I love art--walk around this convention and you'll see beautiful works--like Rembrandts on a credit card."

A walk around the convention hall suggested nothing has been overlooked by telecard designers. The cards on display illustrate sports figures, artists, charitable groups, snowmen, earthquake relief efforts, animals, political conventions, rock stars, cartoon figures, moon walkers and magazine covers.

"It's an industry at the entrepreneurial stage," said Michelle Hartley of the conference staff. "Last year there were 75 companies producing prepaid calling cards, and now it's up to 500 and continuing to grow. There are even people producing them out of their garage."

Each telecard includes an 800 number and a personal identification number (PIN) that can be used to make long-distance calls on any touch-tone phone. These are smart cards with technology that can be read by the telephone, said Jackie Maestas, publisher of TeleCard World. The magazine, launched last March, was one of the sponsors of the Los Angeles conference.

The United States is playing catch-up with telecards, Maestas said. "They started in Europe as a matter of convenience, as coin replacement cards for telephones. It's believed the first ones were introduced in 1976 in Italy, as a way to deter vandalism at pay phones."

After this utilitarian beginning came the vast number of designs and the collectors. Today, she said, the cards have at least three purposes, and only one of them is to make phone calls.

The cards are also marketing tools. Companies such as McDonald's and Pepsi use them as incentives for customers. Phone cards have been offered to reward consumers for everything from driving a Lexus to trying on Playtex's Eighteen-Hour Bra. They've been offered free to consumers who rent a Ryder truck, buy two packages of Ball Park products or purchase 10 Kraft budget Gourmet Dinners.

And now in many areas, the cards are being created specifically as collectors' items, packaged in lavish sets, and promoted as limited editions commemorating everything from famous artists to special events. Some even say the cards have more value if they are in mint condition--unsullied by use to make a phone call.

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All aspects of the emerging industry were evident in the exhibits, which filled the Convention Center's South Hall. There were companies selling telecard vending machines and kiosks, telecard printing presses, telecard packaging sleeves and display books, and printing, stamping, bar-coding and embossing machines.

There also were companies selling long-distance service. Although phone cards originally were produced by telephone companies, thousands of other entrepreneurs are jumping on the bandwagon, said Jon Rochetti of U.S. Long Distance Inc. "A retailer, like Sears or Kmart, who wants to issue a card can buy a secured block of time from a licensed carrier.

"A computer recognizes the card, and subtracts the time used for each call from your total. So you have three players--the carrier selling the long-distance minutes, the card producers and the marketing agents or distributors selling the cards to end users."

The lack of regulation and the explosion of card producers has led to "a little fraud in the industry," Rochetti said. "There have been companies who've gone belly-up"--meaning they probably cannot pay the carrier for the long-distance time, rendering their cards useless for calls.

"It's an industry going through a definite growth period and we can expect a shakeout of providers," said Michael McLelan, vice president of AmeriVox, a telecard company formed in 1991 by World Telecom Group Inc. in Mountain View, Calif.

AmeriVox's licenses for collectors' editions include sets of cards portraying Elvis Presley, cartoonist Mort Walker's Beetle Bailey, Norman Rockwell's Saturday Evening Post covers and an elaborately packaged John Fitzgerald Kennedy series.

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