Prepaid Call Providers Form Association
Prepaid phone card companies, without an association since the International Prepaid Communications Association folded in late 2005, are forming the American PrePaid Phonecall Association (APPPA) and recruiting members, said Executive Director Gene Retske. The group, which has 12 founding members, claims to already represent the majority of the U.S. prepaid calling market. It has established standards for all U.S. prepaid phone call providers who want to join, the association said Thursday.
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"The industry has not had a coherent voice,” said Restke, ex-editor of newsletter Prepaid Press. After the IPCA shut down, there was industry infighting, the threat of further government regulation, and a lawsuit by IDT Corp. alleging fraud by several competitors. APPPA aims to present a unified voice, Retske said.
The association intends to create a consumer bill of rights and standards regarding how products are marketed and sold, and work with government agencies to ensure their concerns are addressed. Ultimately, it’s about speaking for the consumer, Retske said. “As an association, our job is to ensure that members are operating in a way that assures consumers will have a positive experience."
Consumer groups have in the past criticized some prepaid calling companies for selling cards that provide far fewer minutes than advertised. “There’s been a tendency in the past to say ‘500 minutes on a $5 card,'” but there might be lots of catches that make it “impossible in some cases” to actually get all the promised minutes, Retske said. APPPA will let prepaid providers “work together as an industry to bring up our own standards” and weed out poor practices, he said. Eventually the group plans to take positions on pending legislation.
To become a member of APPPA, prepaid providers must have all the proper licenses and authorizations required by government. “APPPA membership will be made available to service providers who operate in accordance with the best practices in the industry,” said Pete Pattullo, CEO of prepaid calling card provider Network IP, a founding member of the group. Other members include Grupo Marcatel’s Vivaro, AmeriMex, Auris Technology and Dollar Phone. IDT has not signed on but has been offered a membership, Retske said.
IDT said it had led the fight against prepaid calling card companies that fraudulently promise more minutes than their cards can deliver. “To the extent that any industry group is willing to join us in the fight for honest advertising in the prepaid calling card industry and vigorous enforcement of consumer protection laws, we welcome their efforts,” the company said.