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If the conversion rate would be the same, I could see where this might be beneficial, but at those rates it is a bit of a ripoff. It's probably due to fees being paid to Zong, and any bit overall helps Outspark, so the customer is the one getting raked over for this one. Hopefully people will understand that and not use the service.
Then again, it looks like the target for this is mainly teens, which have abysmal critical thinking skills, especially when it comes to money. The marketing department is certainly earning their keep over there.
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