Interesting reading on competitor and the industry:
To: Brett Fleischman (0 )
From: PennyPicker (Trial Member) Thursday, Jul 16 1998 10:25PM ET
Reply # of 430
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THE COMPANY :
This is a three year old Company in the Telecommunications and Internet Services Market: the largest division is currently prepaid phone cards. The Company, through their affiliation with Irving Moon, the founder of the Canadian Korean Business Association (KB) has exclusive telecommunications contact with 4,500 convenience stores in Canada, which is the single largest phone card contract in Canada to-date. AND through a Letter of Intent with the Korean American Grocers Organization (KAGRO) in the United States expects to sign a similar contract with 48,000 convenience stores within a month. This will be the single largest calling card contract written in the world to-date. Discussions have been conducted with Sprint to do a joint venture, where Sprint would handle all the network services. Talks have also taken place with MCI, GTE and Smartcard. Sprint is the #1 prepaid phone card company. They have 45,000 stores. As an upstart company, Go Callr Inc. will have 52,000 stores.
All 4 companies are setup for direct carrier wholesale time for Go Call prepaid phone cards. By cutting a deal with one of these companies all card printing and order processing will be funneled through their existing network. This co-branding will increase the direct carriers', revenues and Go Call'sr bottom line. Presently Go Callr does co-branding on a lesser scale in Canada with small and large businesses.
In a perfect world sales would be over a billion dollars a year. So, even in the world we live in if the Company hits
$50 million in retail sales - - it's a huge number. Reiterating that Sprint is the largest right now - - with this one contract the Company double their capacity in prepaid calling cards.
FACTS:
Convenience stores are the #1 outlet for prepaid phone cards
The highest percentage of convenience store owners in North America are Korean
For over 25 years Koreans in No. American have been building wealth with multiple store ownership and working long hours
20% of the country's population does not have a telephone
75% of the North American population do not own a telephone card
Over 60% of the country's population does not have a credit card
It's mind boggling!
PREPAID PHONE CARDS:
One of the great benefits of prepaid phone cards is that you pay one flat rate per minute when calling anywhere, anytime in the continental United States and Canada. Typically, calls made with prepaid calling cards will save you over 50% in long distance charges. When you purchase a card, you are paying in advance normally in increments of $5, $10, $25 or $50. As calls are made, the number of useable minutes is automatically deducted from the card balance, which is either recorded on the card itself or on a central computer through which the calls are routed. A rechargeable (also called re-usable) card allows the user to purchase more usage time. Buying one card and being able to use it over and over again offers maximum convenience.
KIOSKS:
Convenience is the key word. Prepaid phone cards are convenient. Kiosks are convenient and easy. Go Call Inc. can enhance the image of the convenience store by putting a kiosk in every store. The Board of Directors of the Korean Business Association likes this idea. A Kiosks would allow any individual to go to a convenience store, get E-mail, send E-mail or check out information on the Internet. Only 20% of America's population have computers in their home; less than half of the 20% are connected to the Internet. That means that 250 million people have no direct access to the Internet. Now they will be able to get it at their local convenience store - at a fraction of the cost of faxing.
The convenience stores will purchase the Kiosks for about $2000. They will charge their customers $.10 to $.12 per minute to access the Internet. The stores net will average $.08 a minute, Go Callr Inc. will average $.02 a minute. Mixing proven technologies with an existing state-of-the-art kiosks with Go Callr, Inc.'s "Internet access" concept will eliminate the necessity for research and development dollars.
VALUATION:
The Company had sales for 1997, $ 630,000. Just the way the business is operating presently, 1998 sales should be over 1 million. Prepaid phone cards are fast becoming the new rage sweeping America. In Asia and Europe combined, prepaid cards are a $4 billion industry. Unlike European cards, prepaid phone cards in America can be used from any touch-tone phone which increases the market share and penetration . This results in a multi billion dollar industry. 4,500 store contracts evaluated at 10.1 million, CND (7.2 US) (US control is 10X greater).
In a few weeks the Company will have also established an Internet Casino, "Go Casino". Gaming industry experts predict on-line casinos to generate over $10 billion annually.
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