Prepaid phone cards fill a growing need, giving newcomers to the ...

said accelerating immigration since 1990 fuels need for low-cost international long distance service. Immigrants made up 41% of U.S. population growth 1990-2000 and 45% 2000-2003, and many have low incomes, he said in an interview. His study “is an analysis of how markets respond to gaps in basic services for lower income people,” Shapiro said. International calling isn’t covered by the Universal Service Fund Lifeline and Link-Up programs for low income consumers because until recently few in that demographic made international calls, he said. In his survey for IDT, whose telecom services include sale of prepaid calling cards, he looked mainly at price, and didn’t address USF reform, he said. But results indicate there may be no need to apply USF subsidies to international calling, thanks to a “market solution” - phone cards, Shapiro said. Prices for a 30-min. international call average $6.21 for prepaid cards, $7.59 for dial-around, $9.82 for landline and $17.13 for mobile service. Shapiro looked at 11 nations to which emigres frequently make calls, such as China, Mexico, El Salvador and the Philippines. Prepaid cards tend to cost less because they remove the “risk of nonpayment,” he said.