All, I had the opportunity to speak to Frank briefly this morning, trying to get clarification on the last announcement (Franklin Inks 4 Major Contracts!)
The Private Label Enhanced Application Internet Services, PLEAIS as it is called, was in fact very significant. From what I could gather, it deserved the exclamation point. In fact I mentioned the exclamation point and the flurry of discussion that it had caused, Frank laughed and said that he would have put in NEON BLINKING LIGHTS if that it what it took to convey the importance of the that announcement. He went on to say that it was an extremely positive event and it's impact to Franklin, overall, would soon be realized in dollar and cents.
He would not quote the exact numbers that the 61,000 new customers would generate, but when I asked if it would be fair to assume that they were wholesaling it in the $3 per head range, he said that would be safe to assume, "close enough" were his exact words.
I asked for some more detailed definition regarding PLEAIS, and was told that it was a wonderful product for clients that wanted an ISP presence, yet were not in a position (financially, technicallly, or constrained by "time devoted" limitations) to accept the responsiblity and constant supervision that running an ISP entails. He stated that FNET could supply the equipment, talent, and expertise to deliver state of the art services at a fraction of the cost to the client, and for FTEL's part they would share in the revenues. This would allow the client to focus his time and money on the marketing of their own ISP services.
He went on to say that in addition to the initial PLEAIS package the client could also opt to add on customer support services, and other tag on options, each adding to the overall cost and the resulting revenues generated for FTEL. In other words, each client's billling could be customized to meet their commitment of dedication to the support of their own ISP presence. For example, if a client wanted to just be involved in the designing of web sites and the marketing of their ISP services, they could in fact never have to touch a piece of equipment, or handle a support call, or deal with the rigors that most ISP providers have to deal with. Frank went on to say that this allows an ISP the opportunity to focus on what they do best, and allow his people to stay focused on what they do best, a win, win for all parties involved. Sidenote: this also means that these clients become a marketing force for FNET without incurring any sales costs.
I asked if they had received much of a reception to this, and he said it has been very encouraging and we should see more in the near future on this. I asked if any of the clients mentioned in the news release were on line yet, and he said yes, it was just now being implemented and in fact there were some already on line starting this week.
The conversation was cut short by a meeting that was scheduled, but my overall impression is that this PLEAIS program could be a key contributor to the overall bottom line in the months to come. BTW, he also mentioned that the revenues generated, carries extremely high margins.
Hope this helps in understanding the last announcement, and that it envokes a sense of importance that it deserves, instead of the sluff-off reception it received.
RB |
