Million Card Service Co. Ltd. and Fusion Communications Corporation have formed
a business alliance under which a Fusion Members Card will be offered, beginning April 19, 2001. In
addition to the standard features of the Million Card, the Fusion Members Card--a personal-use Visa
credit card--has an attractive feature whereby points are earned based on purchase amount. Up to 100%
of the cardholder's Fusion telecommunications usage fees can be reimbursed, depending on the number
of points earned during a given month, for a maximum of 5,000 yen per month. (Details are shown in
the accompanying table.) The Visa card entails no annual membership fee during the first year of use.
Fusion and Million Card Service will be marketing the card to Fusion's customers
and aim to issue 10,000 cards during the first year of availability. Million Card Service anticipates
that a group of "high usage" cardholders--Fusion customers likely to use the card frequently
over the long term--will be attracted by the card's features, while Fusion expects that the cashback
feature of the card will enhance customer service and lead to greater usage of Fusion's telecommunications
services. The two companies plan to jointly develop additional promotional programs based on the card's
point-generated cashback system.
Established in March 2000, Fusion is a new-generation telecommunications provider
that uses IP (Internet Protocol) technology for its services. In April 2001, Fusion began offering
long-distance and international telephone services and dial-up Internet access service, all available
nationwide, with its 0038 access code. Fusion's long-distance service is revolutionary in that it charges
a flat rate--20 yen for 3 minutes--for all calls nationwide, a concept completely different from traditional
distance-based telephone charges.
The simplicity of the fee schedule, as well as the reasonable rates, have already
attracted more than 200,000 customers. Fusion's Internet access service, available nationwide, is also
offered at a simple, reasonable rate: 10 yen per minute (including the call charge).
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