THIS WEEK: CardCall threatens to sue UK newcomer

CardCall chief Michael Zwebner is threatening legal action over the launch of Instacall - a combined phonecard and scratchcard - in the UK as the battle for the phonecard market heats up.

CardCall chief Michael Zwebner is threatening legal action over the

launch of Instacall - a combined phonecard and scratchcard - in the UK

as the battle for the phonecard market heats up.



CardCall, which has a marketing agreement with Camelot in the UK, has a

joint venture agreement with Instacall manufacturer Transfer Technology

to launch the product in Canada.



Zwebner believes this included an agreement not to launch the product,

which rivals both CardCall’s phonecards and Camelot’s scratchcards, in

Britain.



‘There was an understanding that there would be no Instacall in the UK

for the time being and they have gone ahead and launched,’ said Zwebner.

‘I am consulting lawyers about it.’



However, Lord Mancroft, chairman of Transfer Technology, reacted angrily

to Zwebner’s threats. ‘There was no agreement. I don’t take kindly to

those sort of stupidities,’ he said. ‘We could not be partners in the UK

as he has a partner in Camelot. I suggest he picks up the phone and

talks to me direct.’



Zwebner, who launched a National Lottery branded card in the UK in

August, has also denied press reports of CardCall’s failed attempt to

float on the Alternative Investment Market: ‘There is no uncertainty

about the future. We are financially strong and proceeding with our

commitments.’



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