Convergent Billing Agreement With Ontario Hydro Energy Inc.
May 4, 2000
TORONTO, ONTARIO--Mosaic Group Inc. (TSE: MGX), Canada's leading
outsourced marketing services agency, today announced that it has
entered into a 5-year agreement with Ontario Hydro Energy Inc.,
the newly created entity that has been launched by Hydro One Inc.
(formerly Ontario Hydro Services Company) to win retail energy
customers. Mosaic and Ontario Hydro Energy will market and share
revenues from a bundled utility offering called Onsource. Mosaic
will begin to generate revenues from the program commencing in
June 2000. In 2001, Mosaic's revenues from Onsource are expected
to be over $20 million, depending on client acquisition numbers.
Mosaic's principal revenue source will be from the provision of
telecommunications services.
Customers can purchase Onsource water heater rentals and long
distance services starting in May 2000, with other services in the
bundled offering to follow in coming months. Onsource customers
will be able to choose from a combination of electricity, natural
gas, long distance telephone, wireless telephone, and water
heating, with additional services added over time. For many of
these services, Mosaic will use Intelecom Systems' proprietary
rating engine to provide pricing comparisons among competing
service providers.
"The energy industry is transforming itself. Effective product
differentiation is a key factor for success," said Michael Skea,
President of Mosaic Digital, Mosaic's e-commerce division. "With
Onsource, we will provide a convergent billing program developed
jointly by our eForce unit and Ontario Hydro Energy, with the
software and processing provided by Intelecom Systems, which is
owned 20% by Mosaic. Ontario Hydro Energy's Onsource product will
combine the convenience of being charged for multiple services on
one bill with the value of comparison-based pricing. After the
launch, Onsource will also introduce electronic bill presentment
and payment over the web."
"Several Mosaic units will be providing services to Ontario Hydro
Energy," Skea continued. "Intelecom will provide the convergence
billing and comparison-based pricing platform, Mosaic Direct and
Interactive will execute the direct mail marketing program, and
eForce will manage the customer relationship function at the
Onsource call centre. The Onsource program is an excellent example
of the integrated suite of services that Mosaic can provide."
"We believe that together, we have created a value-added program
that is unique in the Canadian energy market and one that will
allow us to be the pre-eminent energy services company in Canada,"
said Mike Miller, President and Chief Executive Officer of Ontario
Hydro Energy.
"Mosaic is a leader in providing innovative solutions to clients
in newly deregulated industries," said Michael Cottman,
Vice-Chairman, President and Chief Operating Officer of Mosaic
Group. "eForce and Intelecom's value-added convergent billing
technology and our marketing and sales expertise give our
deregulated clients a competitive advantage in a highly
competitive environment. We are looking to expand our offering
into other markets in the future."
Mosaic Group Inc., with operations in the United States, Europe
and Canada, provides outsourced marketing services on an
integrated basis to leading corporations serving international
markets. Mosaic combines strategic thinking with leading-edge
technologies to effectively deliver immediate and measurable
results for its clients. Marketing solutions include electronic
marketing, e-commerce, new media services, contract sales,
merchandising, field marketing, direct marketing, database
development and management, product promotion, corporate
communications and sales force training. Mosaic, which has
approximately 71 million shares outstanding, trades on the TSE
under the symbol MGX. |
