Launch Prior to 1993, collect calling was a virtual monopoly held by
AT&T as people were accustomed to dialing "0" to place collect calls. MCI moved aggressively to insert itself into the market by launching 1-800-COLLECT that year. By dialing 1-800-COLLECT, customers could connect with an automated MCI system which would directly place a call to a designated receiving party for a fraction of the cost of the AT&T service for its operator-assisted collect calling. According to
Advertising Age, 1-800-COLLECT went from concept to launch in less than three months. Launched with a large marketing budget, within a year
New York Magazine reported that MCI had "stamped 1-800-COLLECT onto our consciousness with a mammoth marketing blitz" aimed largely at
Generation X consumers.
Competition Following the successful launch of 1-800-COLLECT, AT&T responded with a competing 1-800 phone number providing discounted collect calling, 1-800-OPERATOR. However, a significant portion of calls intended for 1-800-OPERATOR misspelled "Operator" as "Operater". The numerical translation for 1-800-OPERATER (1-800-673-7283) was, at the time, assigned for routing to the MCI network, which capitalized on the large number of spelling errors by connecting those calls to 1-800-COLLECT. After several months, AT&T realized they were inadvertently directing a portion of their business to MCI and terminated the 1-800-OPERATOR service, replacing it with 1-800-CALL-ATT. The local telephone companies, who lost a significant amount of business to both numbers, started fighting back with ads showing how much simpler it was to just dial 0 (
Ameritech's ad said "Why push 800 numbers when you can just push one?") or later advertising
calling cards as an alternative to calling someone collect.
Later years By the time of MCI's bankruptcy in 2002, its 1-800-COLLECT business had fallen precipitously due to the growing market penetration of
mobile phones and the decreasing popularity of
pay phones, which had generated a large portion of the collect calling business. After MCI was acquired by
Verizon following the bankruptcy, the 1-800-COLLECT business was transferred to a small Verizon subsidiary, Telecom USA. Though the service's robust advertising budget was terminated, it continued to receive a trickle of business. In 2014 one caller, who "still associated the 1-800-COLLECT number with reasonable collect call rates... so strong were the company's early ads", reported being charged $42.55 for a six-minute telephone call. ==Marketing==