MISSISSAUGA, ON, Nov. 9 /CNW/ - Phonetime Inc. (TSX: PHD), one of the world's fastest growing providers of international long-distance telecommunication services, announced today that it has signed a consent agreement made with the Competition Bureau on the marketing of pre-paid long-distance phone cards.
"For more than three years, we have made every effort to resolve the Bureau's investigation in an expeditious manner, and we thank the Deputy Commissioner and her staff for their support in bringing this matter to a fair resolution. We have always held Phonetime's card business to a higher standard and strive to always offer superior value to our customers. We firmly support the Competition Bureau's goal of enforcing a clear advertising policy for the entire pre-paid calling card industry in Canada. We are encouraged with their plans to enforce a clear advertising standard for all phone card providers in Canada," said Wayne Silver, President and CEO of Phonetime.
Mr. Silver added, "The focus of our operations has evolved considerably since the investigation began and phone cards now represent less than 5% of our overall sales. This year, more than 80% of our revenue will be derived outside of Canada, as we have evolved our Company into a leading worldwide international 'carrier's carrier' of wholesale long-distance minutes. We are pleased to have resolved this matter."
Phonetime has paid $300,000 as per the consent agreement, an amount the Company had accrued two years ago in its 2007 financial results. The Company will also offer a refund with proof of purchase, for most of the purchase price to individuals who bought Bravo and Bravo Atlantic phone cards. The Company will advertise nation-wide the particulars of the consent agreement and details for obtaining a refund.
About Phonetime Inc.
Established in 1994, Phonetime is a leading supplier of international wholesale and retail long distance telecommunications services with network facilities in Canada, the U.S., Europe, Africa and Asia. Through its Wholesale Division, Phonetime buys and resells long-distance services to major telephone carriers around the world using its proprietary call trading platform. Through its Retail Division, Phonetime provides subscription-based long distance services to targeted ethnic consumers across Canada and competitively markets a range of pre-paid long distance phone cards. Phonetime's common shares trade on the Toronto Stock Exchange under the symbol PHD. More information can be found at the Company's website, www.phonetime.com
Caution Regarding Forward Looking Information:
This press release contains forward-looking statements, which may be identified by words like "expects", "anticipates", "plans", "intends", "indicates" or similar expressions. These statements are not a guarantee of future performance and are inherently subject to risks and uncertainties. Phonetime's actual results could differ materially from those currently anticipated due to a number of factors set forth in reports and other documents filed by the Company with Canadian securities regulatory authorities from time to time.
SOURCE PHONETIME INC.
For further information: For further information: Wayne Silver, Phonetime, President & CEO, (905) 361-8304, email@example.com; Rodney Franklin, Phonetime, Chairman & CFO, (905) 361-8305, firstname.lastname@example.org; Joe Racanelli, Equicom Group, (416) 815-0700 x 243, email@example.com