Two years ago, neighbors in Jackson Heights, Queens used to buy a stack of phone cards to call relatives in their home country. They would move around with a dozen phone cards in their wallets; phone cards were the preferred way to contact people overseas. However, the variety of internet and phone companies’ offers that make it cheap to call long distance today are lightening people’s wallets and threatening the international phone card business.
“The international phone card business has dropped 75%,” said Amarjit Singh, an owner of a clothing store that also sells phone cards in Jackson Heights. He has 50 different types of international calling cards in his store based on public demand. “It has become a side business that only is for attracting customers,” said Singh.
Singh has minimized the phone card business in his store. He understands that now people want everything in one device. Phone companies like T-Mobile and Metro PCS are offering free long distance calls under their contract plan, which affects the phone card business. Also, Skype, Yahoo and many others online companies have cheap offers to make international calls.
“People can make local and international calls from one phone which is convenient for them,” said Singh. “The money goes to big companies. They buy minutes and sell to four to five million people nationwide. They are making money, not the small businessmen.”
Another phone card businessman, Mohammed Tariqul Islam explains the 3-step process of the international phone card business: phone card companies sell phone cards to the wholesalers; the wholesalers sell to the retailers; finally, the businessmen buy phone cards from the retailers.
“It takes 50 cents to make one phone card. I have to buy a card for $1.50 and I am selling the card for $1.75; it is only 25 cents profit,” Islam said. “My monthly gross income is $3000 to $4000, which is not profitable enough to take care of the store’s rent.” After a brief silence and a big sigh, Islam shared his future plan, which is to start a wholesale business of phone cards, hoping to make a profit.
Between 74th and 75th Streets on 37th Avenue, in two blocks, there are more than 15 stores selling phone cards. Anwar Hossain works hard seven days a week from morning to midnight, because he cannot afford an employee. “The internet connection is getting faster in Asia. Now people can talk on Skype and other websites rather than buy phone card,” said Hossain. He is planning to close his five year old phone card business and looking for something else to do.
“A phone card is now like a newspaper. We do not make money but we have to keep the newspaper anyway,” said Hossain sadly.
The phone card business is challenging the small businessmen in Jackson Heights. They have to find an alternative way to make a profit, such as selling other products like clothes, jewelry, perfumes, childrens’ toys, gum, and other daily products.
Gowardhanvi Patel opened his small stall one year ago, where he sells phone cards along gums, snacks bars and newspapers. “No one is making a profit on the phone card business not only because of its decline, but also because of the competition,” said Patel. “Some businessmen who are only doing their phone card businesses in a tiny place or sharing a corner of a store, and paying less rent, they make some profit and are able to sell cards cheaply.”
Despite the fact, small businessmen are still investing their money and effort to establish International phone card business in Jackson Heights because of the diverse population of the neighborhood. Now the primary customers of phone cards are students and single immigrants, who buy $2.00 phone cards to save money.
If the phone card business continuous to shrink rapidly, many people in Jackson Heights will be cut off from their family. “My family does not live here,” said Sahida Begum. “I call Bangladesh every day. I buy phone cards because I do not have internet in my house.”
