A METHOD OF SETTING-UP A TELECOMMUNICATIONS CONNECTION AND A CARD READER FOR USE IN CONNECTION WITH THE METHOD The present invention relates to a method or setting-up a telecommunications connection in a fixed telecommunications network, and in particular to enable the use of a telephone line that has been disconnected or cut-off and the use of a prepaid telephone account. The invention also relates to a card reader which is designed for use in connection with the method and which is connected in a fixed telecommunications network so that a card can be read by the card reader and therewith establish communication with the prepaid telephone account.

A large number of telephone subscribers have their subscrip- tion revoked and their telephone disconnected as a result of failing to pay their telephone bills. These telephone sub- scribers are debarred from all forms of telephone communica- tion, both incoming and outgoing telephone calls, and also from communication via a computer. Many of these subscribers are also refused the possibility of signing for a fixed tele- phone subscription because they do not have the credit wor- thiness that is required by present-day telephone companies before allowing a person to sign for a telephone subscrip- tion. Those persons who are unable to obtain a permanent telephone subscription for these reasons are normally unable to obtain a mobile telephone subscription and will thus be totally excluded from any form of telecommunication.

These problems derive from the basic problem that telephone calls made from a standard telephone connection are paid in arrears.

Accordingly, one object of the present invention is to pro- vide a method which enables a telephone call made through a fixed telephone network, such as a public switched telephone network, to be paid for at the same time as the call is made.

Another object of the present invention is to provide a card reader which in conjunction with a card inserted therein provides a connection that enables a telephone call made via the fixed telephone network to be paid for at the same time as the call is made, and in particular to establish communi- cation with the prepaid telephone account through the medium of a card read by the card reader.

A further object of the invention is to provide a method with which economic compensation can be given to the subscriber who elects to participate in a written or spoken message, for instance a readable or an audible advertisement, said eco- nomic compensation being effected by updating the balance of the subscriber's telephone account.

Still another object of the invention is to enable products and services to be purchased via the telecommunications con- nection, where payment for the product or service in question is deducted from the telephone account.

Still another object of the invention is to enable funds to be transferred from the balance of the telephone account to the telephone account owned by another subscriber, with the aid of said telecommunications connection.

These objects have been achieved in accordance with the in- vention as defined in the following Claims.

The invention will now be described in more detail with ref- erence to non-limiting embodiments thereof and with reference to the accompanying drawings, in which Fig. 1 is a diagram- matic illustration of how an inventive method can be imple- mented; and Fig. 2 is a schematic illustration of an inven- tive card reader.

The fixed telephone network or public switched telephone network will include one or more telephone Operators 1 to which telephone subscribers 2 can be connected via fixed telephone lines 3. The subscriber is able to reach other subscribers through these fixed telephone lines 3, by virtue of telecommunications traffic being connected to these other subscribers through the telephone Operator 1. The telephone subscriber normally establishes a call connection with the aid of his/her terminal, which may be a conventional tele- phone or a computer, such as a personal computer, which may be connected to the telephone network through the medium of a modem. If the telephone subscriber 2 is not credit worthy or has mismanaged his/her earlier payments to the telephone Operator 1, the fixed telephone line 3 will be cut-off or disconnected as indicated at 4. The telephone line 3 is still present physically and the subscriber connection has a fixed address which remains the same regardless of the subscriber telephone number on the connection concerned.

When the fixed telephone line 3 is disconnected in the ab- stract sense of the word, the subscriber connection means can still be connected to a special Operator server 5 via the fixed telephone line. The connection 6 to the Operator server 5 may be arranged so that the subscriber can only reach the server 5 when the telephone line 3 has been disconnected or cut-off, although the subscriber 2 is still unable to use the

connection means 6 to make a telephone call or to perform any other form of telecommunication. The subscriber has been informed of the fact that the subscription has been termi- nated and that he/she has the option of obtaining a prepaid telephone account 7 and therewith enabling him/her to use his/her telecommunications connection means via the server.

The subscriber can obtain such a prepaid telephone account, by purchasing a so-called code envelope 8 from a special sales point, for instance from a telecommunications shop, a post office or a gasoline station, for instance. The code envelope 8 includes a telephone number, suitably printed on the outside of the envelope 8, so that the subscriber is able to choose his/her new telephone number. Inside the envelope, there is a code which the subscriber must enter in order for his/her new telephone subscription with a prepaid telephone account 7 to be activated by the server 5. The envelope will, of course, also contain instructions as to how the subscriber shall effect activation of the new telephone subscription.

For instance, the subscriber 2 may enter the code given in the envelope 8 via his telephone or via some other telecommu- nications equipment, e. g. a PC, by virtue of the fact that the connection 6 with the server 5 allows the code to be entered. When the server 5 receives the entered code, it checks that the code agrees with a telephone account 7 that has already been laid up in the server 4, and thereafter opens a new telecommunications line 9 for the subscriber 2, this new telecommunications line passing via the server 5 and a connection line 10 to the telephone operator 1 concerned.

This enables the subscriber 2 to utilise the public telephone network via the new telecommunications line 9 in the same way as all other subscribers, although with the limitation that he can only do so when there are sufficient funds in his

telephone account 7. Other persons are also able to reach the subscriber 2 via the telephone number received by the sub- scriber when purchasing the code envelope 8.

The server 5 monitors the balance of the telephone account 7 of each individual subscriber 2 and, during ongoing telecom- munications traffic, subtracts the traffic costs from the balance of the account.

The telephone account 7 may conveniently include both a fixed fee for the use of a line for a given period of time, and a balance, or sum, at disposal for the direct telecommunica- tion,"call fee". As the bottom of the disposable funds ap- proaches, both with respect to time for which the use of a line has been paid and with respect to the balance of funds for"call fees", a warning signal is given to the effect that the account requires further funding. This warning can either be given in the form of a voice message in the case of an ongoing call, or in the form of a readable message in the case of a PC connection.

When it is necessary to fund the telephone account, the sub- scriber can purchase a new code envelope 8. This new code envelope may conveniently lack a telephone number and include solely the code that shall be entered by the subscriber through his telephone or personal computer in order for the telephone account to be updated with the sum corresponding to the price paid by the subscriber for the code envelope. The sum corresponding to this purchase may also be divided into a fixed fee and a"call fee". However, it may be so that the subscriber himself must enter information as to how he wishes the sum involved to be divided between a fixed fee and a traffic fee, on the basis of his own requirements. Such sup-

plementary code envelopes for replenishing a telephone ac- count can be made available for different sums to suit sub- scribers that have different needs. The subscriber may also replenish the telephone account through a bank payment or postgiro payment, or by a direct bank transfer.

The subscriber is able to use the telecommunications connec- tion in the same way as any other subscriber, provided that the telephone account 7 shows a positive balance. However, when the account reaches zero, the server 5 will release the connection of the subscriber 2. This release, however, may include retaining information relating to the earlier opened telephone account 7 of the subscriber 2 in the operator server 5 for a given period of time, for instance twelve months, from the time that the account was last used, and the subscriber can reactivate the telephone connection at any time during this period while keeping the telephone number earlier obtained, provided that he replenishes the telephone account 7 by purchasing a code envelope and entering the requisite code for reactivating the telephone account.

The operator server 5 can be operated by one of the telephone Operators 1, although it may, of course, alternatively be operated by a company that is not associated with these Op- erators. When a direct connection with the telephone operator is cut-off, the telephone Operators 1 are able to reconnect the subscriber concerned solely for contact with the server 5 that has the prepaid telephone account. This may be arranged so that a part of the fixed fee paid for a part of the cost of the prepaid telephone account is transferred to the tele- phone Operator who disconnected the subscriber, in repayment of the subscriber's debt to this Operator.

Instead of using a code envelope that includes a code which must be entered by the subscriber in order to activate the prepaid telephone subscription, it is possible in accordance with the invention to use a telephone card in the form of a smart card which makes available a prepaid sum and which also includes means of identification that can be used for setting up a connection with the Operator server 5, and which can be used in a card reader connected to the subscriber telephone connection means to send information from the card to a server 5 for activation of the prepaid telephone account.

Such a card may also be used for direct"electronic"replen- ishment of the account on the card for later transmission to the telephone account 7.

Fig. 2 illustrates a card reader 11 which, in accordance with the invention, is constructed as an intermediate plug for insertion into a conventional telephone jack, and is provided with a socket 12 for receiving the plug of a conventional telephone. The card reader also includes a card insertion slot 13, the card used preferably being a so-called smart card.

An inventive card reader may also be used in other fields.

For instance, the card inserted into the card reader may have been allocated a telephone number which is read by the card reader and forwarded to the telephone station or switching centre. In this case, a telephone call connected to the tele- phone number associated with the card or the code is con- nected to the jack in which the card adapter is inserted. t This enables a telephone number associated with a telephone card or some other smart card inserted in the card reader to direct calls incoming to the telephone number concerned to

the telephone jack into which the card reader is inserted, regardless of its location.

An inventive card reader can also be used to prevent unau- thorised use of a telephone subscription in a telephone jack that is connected to the telephone network. In this case, the card reader is constructed so that it can be locked firmly in a telephone jack into which it has been inserted, such as to prevent its removal for easy bypassing of the card reader.

Although not shown, the card reader may include to this end a locking device which will enable the card reader to be firmly locked when inserted into a telephone jack. Such a locking device may be formed integrally with the guide pin present on the telephone plug and arranged to grip behind the outer casing of the telephone jack.

The card reader 11 may include a display 14, e. g. an LCD, liquid crystal display, on which the balance of the telephone account concerned, or some other information, can be shown.

The display 14 may also be used to show the cost of the ongo- ing call and also the number of the card inserted in the card reader, that is when the card is provided with a number.

A card reader according to the invention can also be used within local telephone networks and private branch exchanges, i. e. telephone networks that are governed by a central ex- change in a company, governmental institutions, hospitals or the like. Such local networks will include restrictions as to which outgoing telephone calls can be made from a telephone.

These so-called lockouts established in the exchange can be bypassed, by inserting an inventive card reader as an inter- mediate plug and inserting a card into the card reader, wherewith the cost of outgoing calls can be subtracted di-

rectly from the telephone account associated with the card.

This facility can be used in hotel rooms, where hotel guests are reluctant to make outgoing calls because of their high cost.

A card reader and a telephone card that permits incoming calls to be received enables the frequent traveller to be reached on one and the same telephone number in the public switched telephone network, in principle throughout the world, in the same way as he/she can be reached via the mo- bile telephone networks.

The card used in the adapter according to the invention may also be a combination card that can be used in both a card reader and in mobile telephones, therewith enabling the user to be reached on one and the same telephone number, regard- less of whether he is connected to the public switched net- work or must be reached via the mobile telephone network, and also enabling the caller to utilise the cheapest call tariff at that moment in time.

The external appearance of the actual card reader and its input and output connections must be adapted to the standard applicable to the respective telephone network in which the card reader can be used.

The card reader need not necessarily be designed as an inter- mediate plug, but may have the form of a card reader that includes a card insertion opening and that is formed inte- grally with a typical telephone jack and with which no con- nection to the telephone network can be achieved unless a valid telephone card is inserted into the card reader of the telephone jack.

In the case of a connection means of this kind, the telephone connections of future buildings can be allowed to lie latent and be activated by inserting a valid telephone card. In the case of apartments in which several telephone jacks are in- stalled, each of the apartments may be fitted with a main telephone jack that is equipped with a card reader, this jack being the first in the internal network in the apartment, such that all telephone jacks can be activated for use by inserting a telephone card in said card reader. Alterna- tively, each telephone jack may be equipped with a card reader into which a telephone card must be inserted in order to utilise said jack, where, for instance, different members of the family have cards which are subsidiary to the main card, optionally with an own telephone number, so that a check can be kept of the telephone costs incurred by the children in the family, for instance.

The advantage gained by the telephone Operators would then be that the costs of telephone calls are prepaid, while the tenant or owner of a house or apartment will be able to choose which telephone Operator to use when several different telephone Operators are commercially available. Another ad- vantage gained by the tenant or house owner is that unauthor- ised use of the telephone can be prevented, by supplementing the card with a code that must be dialled before the tele- phone can be used.

A fixedly mounted telephone connection means may also be provided with a telephone card insertion slot into which a telephone card is inserted so as to be read by the card reader arranged in the connecting jack.

As before mentioned, the inventive connection means may also be integrated in a telephone that is connected to a"passive" telephone jack, with the advantages mentioned above with respect to said connection.

It will be understood that a connection means or a card reader need not be used solely for inter-telephone communica- tion and that it lies within the concept of the invention to use said connection means or card reader for other prepaid services, such as for data communication and/or in a TV/radio cable network, where the card reader together with the card inserted therein governs what is allowed to pass through the connection/card reader.

A card reader or an aforesaid connection means that includes a telephone card insertion slot may also include one or more further slots for the insertion of further cards, these cards being intended for different purposes or for different users, for instance. For example, in addition to the slot intended to receive the card belonging to the tenant or home owner, the connection means or card reader may include space for a guest card that can be used by a temporary visitor. The card reader or connection means may also be provided with slots of different sizes for accommodating large or small cards, for instance. Switching between different cards inserted in the adapter/connector can be achieved with some known technique, for instance by allocating a code to the card that shall be used to make ongoing calls. In the case of calls incoming to a card reader or to a connection means into which several cards are inserted, the number called can be shown on the card reader display or on a display mounted directly on the connection means or, alternatively, on a telephone apparatus coupled to said connection means.

A connection means or card reader according to the aforegoing may also be designed to enable an emergency telephone number, e. g. 112 in Sweden, to be called despite the absence of a card in the card reader. The same applies to a telephone subscription that has been revoked when the subscriber is still able to reach the server 5, even though he may not have had time to open a prepaid telephone account 7, or if the account is invalid because it has reached a zero balance.

A significant part of the invention is to provide a method which will enable economic compensation to be given to the person who chooses to participate in a readable or audible message, such as an advertisement, this compensation being given in the form of a telephone account update.

It is known to permit a third party to pay the whole of the cost of a telephone call between two telephone subscribers, or parts of said cost, for instance by sponsoring or by lis- tening to advertising messages. This is put into effect by the caller first dialling a prefix prior to dialling the telephone number, which therewith connects the caller to the telephone network via the telephone connection of the third party, wherewith the costs of the calls made will be paid by said third party. Such a commercially available system in- cludes both the caller and the called person to listen to advertising messages offered by the third party on behalf of companies that wish to advertise their products or services, wherewith the cost of the call is debited to the telephone subscription of the third party.

The aforesaid system can be used in the public switched tele- phone network by those who have a fixed telephone subscrip-

tion, but cannot be utilised by the person that has a prepaid subscription in the public network, since the cost of the call is already debited in conjunction with setting-up a connection with the telephone network.

It is therefore an object of the invention to provide a method which will enable a person calling via a prepaid ac- count in a fixed telephone network or public switched network to be compensated economically.

The transmitted readable or audible information may, for instance, be an advertising message, and the economic compen- sation can be paid by updating the balance on the prepaid telephone account of the subscriber.

The purpose of this part of the inventive concept is to en- able a telephone subscriber who makes a call with the aid of a prepaid telephone account in the, e. g., public switched telephone network to be paid for at least a part of his call, e. g., by listening to an advertising message, this payment being made by the person broadcasting the advertisement. In this regard, prior to dialling the telephone number to which he wishes to be connected, the subscriber dials a prefix which couples the call to a computer unit of a third party, this computer unit containing advertising"spots". The adver- tisement purchaser who has elected to subsidise the telephone subscriber who listens to the advertising message is then able to send data for updating the telephone account of said subscriber.

This updating of the subscriber's telephone account may be in the form of adding the number of units or marks to the ac- count, by transferring"money"to the account, or by updating

the account with other data The updating concerned may also be effected by transferring to the subscriber's account digi- tal information relating to rebates or bonus options that can later be used in conjunction with the purchase of products.

The advertisement transmitted from the computer unit may be neutral, i. e. of equal interest to all receivers, although it may also be directed particularly to the advertisement re- ceiver, such as an advertisement which is adapted geographi- cally to the district or area from which the call was made, or adapted to information stored with respect to the sub- scriber or to the owner of the Operator server.

The telephone account may also be programmed with a code that connects the subscriber automatically to the computer unit of the third party when making a telephone call, without requir- ing the subscriber to dial a prefix to this end.

The procedure may be such that the advertisement concerned will be sent to the subscriber before his call to another subscriber has been connected, or, alternatively, may be such that both subscribers listen to the advertisement simultane- ously. The procedure followed may be such that the calling subscriber will receive greater compensation when two sub- scribers listen simultaneously to the advertisement, than when the calling subscriber is the sole listener.

The procedure may also be such as to enable a telephone sub- scriber to contact the computer unit of the third party solely to listen to advertising messages and not to establish a telephone connection with a third party. In order for the telephone subscriber to be able to obtain some compensation for listening to an advertisement, the computer unit of said

third party may be caused to transmit during transmission of the advertisement a message that requires action on the part of the listener in order for the subscriber to be sure that he will receive compensation, for instance by requesting the listener to press on his telephone keypad a particular button chosen randomly by the computer unit.

A telephone card reader used in the public switched telephone network for instance will preferably include a display on which at least some information can be shown, and will also include one or more buttons which enable the subscriber to select from a menu that is transmitted when setting up a telephone connection or in conjunction with transmitting said information, advertisement. Such a card reader may also be equipped with a loudspeaker over which the advertising mes- sages can be heard directly.

The advertisements transmitted by the computer unit of the third party may conveniently be grouped in different areas of interest and the different menus relating to such areas dis- played on the card reader, so that the subscriber is able to select an advertisement in the area in which he is most in- terested, by appropriate button selection. The different groups may include: 1. Cars and motorcycles 2. Computers 3. Travel and leisure 4. Economy 5. House and home 6. Film and music 7. Culture and theatre 8. Literature 9. Clothing

10. Food and so on.

The areas of interest selected by a given telephone sub- scriber may be given priority, so that these areas will be presented first to the user. Information with respect to such priorities may conceivably be stored in the computer of the advertisement promoter or, alternatively, may be stored in the telephone account of the telephone subscriber.

Information concerning the user, e. g. name, address, etc., will preferably be written into and stored on the telephone account or in the computer unit of the third party and be transferred to the information broadcaster in order to place catalogue orders, to be included in customer registers, and the like. Preferably, it will also be possible for the user to change or erase the information and also to change infor- mation as to whether he is willing or unwilling to receive advertising messages, and also to change the type of adver- tisement in which he is interested.

In addition to using telephone reception options, it is also conceivable to set-up the connection to Internet via a com- puter and that corresponding advertisement transmission func- tions are sent to the screen of the computer. It is also possible for the user to be linked automatically to the ad- vertiser's home page and that any benefits offered can be sent to the subscriber's computer, possibly for printout in addition to updating the subscriber's telephone account.

Naturally, this may take place directly or through the medium of a connected card reader and a card. The card reader may be designed as an intermediate plug or may be an integral part of the computer.

When coupling to Internet through the medium of a telephone account while implementing the method according to the inven- tion, the telephone account may also be used for payment of goods or services ordered via the Internet connection. This may preferably concern payment of small sums on each occa- sion.

It also lies within the concept of the invention to transfer large sums from the balance of a telephone account and the transfer need not only concern payment for goods or services purchased with the aid of the card, but may concern a trans- fer to some other telephone account that is used in a corre- sponding manner, or to a bank account.

The procedure followed in compensating the recipient of in- formation or for the transfer of"money"or the purchase of goods can be applied in a corresponding manner by a mobile telephone subscriber, provided that the mobile telephone Operator can offer these services.

When using a card reader and a so-called smart card or a mobile telephone card where the card reader has a write-func- tion that enables the smart card to be updated, the sum, and therewith the balance, can be stored directly on the card instead of being stored in the telephone account at the Op- erator server.

In order to ensure that the user will not break the connec- tion when large sums are involved, in order to avoid updating of the telephone card after having given instructions con- cerning a large transaction from the card, all of the infor- mation relating to the card balance can be taken from the

card and stored temporarily in the computer unit of the third party. Subsequent to completion of the transactions, the card balance is updated in the computer unit and then returned to the telephone card. Should the connection between the tele- phone subscriber and the computer unit of the third party be broken whilst the computer unit collects the balance informa- tion from the telephone card for some reason or other, this information can be replaced in the card on the next occasion on which the subscriber connects to the computer unit through the medium of the telephone card.

In a corresponding manner, a telephone subscriber is also able to transfer money from the balance of his own telephone account or telephone card to the telephone account or the telephone card of another telephone subscriber. In this case, the telephone subscriber may enter information concerning the transfer of a sum of money to the telephone account or tele- phone card of the other subscriber and the balance then drawn directly from the balance of said telephone subscriber and stored in the computer unit of the third party. The balance on the telephone account or on the telephone card of said other subscriber can then be updated automatically when said other subscriber later connects himself to the computer unit of said third party.