Play Meter

Issue: 1986 January 15 - Vol 12 Num 1

products that will not be produced in a
year will be sorry. They should investi-
gate carefully the manufacturers they
choose by touring the factory , asking
for financial statements, and checking
references. And they should test the
product thoroughly.
Will there be further FCC stan-
dardization of state regulations? Not
soon, say most industry spokesmen.
That fight will be fought by the
industry itself, Haff said. Manufac-
turers' organizations such as the
Public Telephone Council will push
PUCs nationwide to establish uniform
regulations. But Jim Raim of Illinois
Tel sees the inequity among the states
in tariff setting as requiring stronger
measures. He believes the FCC will
step in to even them out.
How will the Bell operating
companies participate? Some pessi-
mists such as Marty Segal, president
of Chicago's Republic Pay Phones,
believe Bell will continue to fight tooth
and nail by raising commissions and
holding on to the most profitable loca-
tions. On the other hand, as mentioned
before, California's Pacific Bell has
considered entering the market itself
with the possibility of a mutually bene-
ficial relationship with private manu-
facturers .
Caveat emptor
Jim Kaufman of Capital Tel
Systems advises purchasers to do
thorough homework before choosing
a product. The first step, said
Kaufman , is to look at your market.
Distributors and
operators who
commit themselves to
products that will
not be produced
zn a year
will be sorry.
Use patterns in a small beauty parlor
can be very different from those in a
big mall. First, look at calling patterns .
Are most calls from your location local
or long-distance? How many are billed
to third parties or collect? Are most
made with coins or with credit cards?
A phone that will not take credit cards
would be a liability in an airport , but it
would not be in a corner bar. Calls
billed to AT & T credit cards or collect
represent no gain for the phone
owner. Kaufman believes the ability to
accept international bankcards is
crucial.
Next , Kaufman continued, test the
equipment to make sure it does what it
claims. What kind of answer super-
vision does the phone have? Call a
number after the person on the other
end has agreed to say nothing. After
pick up, wait five seconds and hang
up. If the phone is voice sensitive, the
call will not register and your money
will come back. Try again and wait 10
seconds. On the next test , let the call
ring for 10 seconds. Some phones will
assume that the call is based on time
and will take the money. In the same
way , test each of the manufacturer's
claims. Then talk to users. Ask the
manufacturer or distributor for a list of
satisfied customers.
Whether the phone's price and
range of features make it a good fit is
important , but more important is
whether its manufacturer will survive
the coming shake-out. By the end of
this year the winners will have taken a
substantial lead over their com-

petitors.
TEST DRIVE THE VANGUARD
SEE HOW OUR FACTS ADD UP
+
+
+
+
+
+
+
+
+
+
+
TOTAL PRE PAY - OPERATES LIKE TRADITIONAL BELL PHONES
EXACT RATE STRUCTURE- TRUE COSTING FOR MULTI-BAND AND LD CALLING
INTERNAL TIME CLOCK - DETERMINES ACTUAL COST USING TIME OF DAY
ANDDATE
VACUUM FLUORESCENT - 16 CHARACTER DISPLAY - WON'T FREEZE - EASY
TO READ
SYNTHESIZED VOICE COMMANDS :-- CORRESPOND TO DISPLAY FOR USER
FRIENDLY OPERATION
ELECTRONIC COIN MECHANISM- VIRTUALLY JAM FREE
SINGLE SLOT - MULTI COIN DETERMINATION- NICKELS- DIMES- QUARTERS
LOW VOLTAGE- NON-RESETIABLE COIN COUNTER
NON-VOLITLE MEMORY CONTAINS RATES TABLE AND OPERATING SYSTEM
SELF DIAGNOSTICS-AUTOMATIC CHECK CYCLE BUILT INTO SOFTWARE
WILL OPERATE ON STANDARD COCOT LINE OR PBX
+ FLEXIBLE CUSTOM PROGRAMMING - FOR 911 , 0, INFOR., 950 , 976 , LD CARRIER
+
+
CHARGE OR INHIBIT INCOMING CALLS
HIGH SECURITY HOUSING - 12 GAUGE COLD ROLLED STEEL PROPRIETARY
HOUSING, VAULT LIKE FRONT OPENING COIN BOX
BACK UP LITHIUM BATIERY - PROTECTS MEMORY IN EVENT OF POWER
OUTAGE
THE OBVIOUS CHOICE FOR THE FUTURE IN PAY PHONES. THE VANGUARD
MEETS ALL LEGAL STANDARDS AND WILL OPERATE PROPERLY IN ALL U.S.
MARKETS INCLUDING NEW JERSEY AND CALIFORNIA.
NETWORK PAYSTATIONS
2650 Bobme er Road• Hamilton, Ohio 45015 • (513) 896-4411
PLAY METER, January 15, 1986
THE VANGUARD
The Obvious Choice
13
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After the Federal Communications Commission
decision to allow priuate pay phones, Dick George of
Roy George Music and seueral other Ohio operators
saw a natural opportunity to expand their businesses,
but they were put off by the substantial inuestment of
time and money required to enter the pay-phone busi-
ness.
They solued the problem by forming Phonetel
Systems, a company through which they could share
costs and pool resources .
George and the other operators participating in the
company- Daue George of Bell Music, Bill and Tom
Elum of Elum Music, Jerry Burger of B&B Leasing, and
Ed Leuine of Atlas Management-- represent companies
that collectiuely haue more than 200 years of experience
in the coin-machine business.
Norm Bork an, the company's chief executiue and a
30-year ueteran of the uending industry, joins G eorge for
part of this interuiew.
..
Dick George
by Valerie Cognevich
W hat were t he adv antages of joining together
instead of going into t his business individually ?
George : "We could minimize our start -up
expenses and get the best service , which we may have
not been able to do alone . When hiring professional
services such as an accounting firm , we retained P rice
Waterhouse , which I doubt if any of the companies indi-
vidually could have afforded to do. We hired one law
firm. We pooled our resources and were able to minimize
start-up costs.
"Another advantage was that by form ing this net-
work of companies we are able to provide service for an
18-county area in Ohio. It would have been difficult for
one company to have service people in all those areas."
So eac h of t he c ompanies is using its own service
and collection people for the phone c ompany?
George: "First, each of the companies can use its
in-house service and collection people. Phonetel didn't
have to go out and hire new service technicians or collec-
tors. And since the companies are in different areas , it
greatly reduces the response time for an out-of-order
call.
"However, though service and collecting is done by
each of our companies' personnel, Phonetel has hired
independent contractors for the customer contact, and
we hired independent installers to place the phones."
Ha ve y ou placed the phon es in loc at ions where
y ou had mac hines, o r are t hey in new loc at ion s?
George: "Some are in our own locations, and
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14
PLAY METER. Jonuo ry 15. 1986

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