here is the bait imcadvisors.com the SEC frowns on unproven companies making such lofty projections
Mr. Bockler is recognized as one of the "Top Technology Analysts on Wall Street" and is a guest commentator of Technology & Biotech companies on CNN, CNBC and Bloomberg. He has commented and reported investment analysis on over 1,000 companies in print and has been a Guest Analyst on over 200 public shows of CNN and CNBC and Bloomberg TV. He is the President of International Market Advisors, which deploys information to Nelsons International Research Catalog, Bloomberg, First Call and Multex Institutional Research. Mr. Bockler's Early investment analysis of technology companies: ALTR, DELL, IBM, INTC, MSFT, VLSI, LSI and ZE as well as Idec Pharmaceuticals. Sepracor and Biotime in the Biotech industry have been well noted over the past 10 years.
AccessTel Executive Summary Financial Summary Services Division
Executive Summary
The decision of several Far East countries to join the World Trade Organization has mandated them to open up their telecommunications markets to competition, creating a window of opportunity to gain a significant presence in the Internet Protocol Telephony and Wireless Local Loop communications industries. AccessTel's management is prepared to take advantage of that opportunity now utilizing their vast telecommunications presence, experience and technology.
Mission and Business Model
AccessTel has a tremendous opportunity in the fast growing Internet Telephony market. Within the past eighteen months, the company has developed a Voice over Internet Protocol (VolP) Telephony solution that will allow it to create a Global IP Telecommunications infrastructure which will provide voice/data/fax/video services deploying proprietary advanced wired and wireless technologies. The company will offer carrier grade, low cost alternatives to conventional international long distance telephone service via the Internet to corporations of all sizes and eventually to the consumer market.
The company has also developed a fixed Wireless Local Loop (WLL) technology which costs much less to install than traditional wire line service per customer. The company also intends to develop 3G CDMA Wireless Global Roaming Technologies.
AccessTel is at the point where it is ready to deploy its products into the market. To implement its plans, the company requires an equity investment of five million dollars to be used as follows:
To deploy a US gateway and three international gateways in the Far East.
To complete the pilot testing of VolP.
To deploy Wireless Local Loop in three markets.
To market VolP services to major corporations.
To recruit additional staff to support growth in the Internet market.
To increase R & D efforts for the development of new products in VolP and WLL solutions and 3G CDMA Roaming.
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Our Products/Service
Voice over IP telephony
The company offers advanced Internet IP solutions for global Voice/Fax/Data/Video services to major US corporations via a new generation of specialized Gateways in key locations Worldwide, starting with the Far East countries of Taiwan, China and Vietnam.
Critical factors in the delivery of services are fast, secure and permanent Internet connectivity. Our product is unique because it allows consumers as well as multinational corporations to immediately deploy high quality voice over IP telephony with substantial savings on their telecommunication costs via Virtual Private Network (VPN) technologies developed by the founders of the company.
Broadband CDMA Fixed Wireless Local Loop
AccessTel possesses a large, existing international customer base including government, ministry and major telecommunication companies in the fast growing Scalable broadband CDMA Fixed Wireless Local Loop and Internet Telephony market. AccessTel's WLL solutions offer a total package of voice/fax and data with greater bandwidth at substantial savings to existing technology. AccessTel is in the final stages of completing a contract to begin three pilot WLL systems in China.
Market Definition
We define our market as Internet Telephony services, using our own proprietary software to enhance these services and provides comprehensive consulting in global VPN solutions. This market was approximately $10 billion last year, according to IDC, and is expected to grow to over $25 billion by the year 2002.
Competition
AccessTel will compete directly with major telecommunication companies. The company's founders have unique global connections especially in the Far East countries. The company will offer cost saving Internet Voice\Fax\data services that will allow reductions in telecommunication cost by at least 50%.
Management Team
Our management team, is headed by our four founders who have a combined 60 years of experience in high-tech marketing, 40 years in product development, 10 years in Internet solution development and twenty years in corporate finance.
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Capital Requirements
We seek $5 million of additional equity (2.0mm shares @ $2.50 per share) financing which will enable us to deploy our VolP and WLL technology. AccessTel seeks to establish initial gateways in three Far East countries (Taiwan, China and Vietnam) to commence voice/data/fax services. We plan public offering (IPO) in the next nine to fifteen months.
A. Use of Proceeds
The company requires $5 million of equity financing to fund our growth for the next two years. At that time, we will need an additional funding to expand our international locations.
The initial stage of funding will be used to complete development, purchase equipment, introduce and market our products and services.
Here is a breakdown of how the funds will be spent;
Purchase & deploy gateways $1,200,000
Purchase 3,000 WLL Phone Systems $1,200,000
Develop our new/next product line $1,000,000
Fund working capital $1,600,000
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$5,000,000
I. THE COMPANY
A. Mission
The company's goal is to become a Global leader in providing carrier grade VolP solutions and Wireless Local Loop systems for major corporations and telecommunication companies using proprietary voice/data/fax/video applications via Internet Protocol (IP). AccessTel provides a Total Solution with WLL (Local access) and Voice over IP (Low cost International long distance calling)
We aspire to carry a reputation in the marketplace for developing and delivering VolP wire or wireless solutions. We can achieve this by using advanced Gateway techniques, engineering, and global alliances.
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To accomplish our goal, AccessTel needs capital for additional staff, development equipment, facilities and the marketing of our products and services.
B. Legal Business Description
AccessTel was founded in 1998 and is a Internet voice over IP Provider which will use its own proprietary Gateway. The legal name of the business is AccessTel Inc., dba AccessTel.
C. Strategy
The company will use its own proprietary Gateway to provide VolP (Voice over IP) and has Memorandums of Understanding from tier two Telecommunication companies to supply over 5 million minutes of VoIP traffic to China and the Far East as well as Memorandums of Understanding from Chinese Telecommunication companies to provide termination at a price point that AccessTel can earn $0.07 - $0.11 per minute per month while offering the lowest cost for calls to the FAR EAST countries. AccessTel will use a dedicated Gateway in each of our primary locations in each country we serve and provide multicultural consulting to our clients from start to finish helping them to improve their global operations.
AccessTel is currently in negotiations to provide three Wireless Local Loop pilot test sites in the China. Preliminary testing on AccessTel's WLL equipment offered a better solution at a lower cost than Hughes and Qualcomm for WLL (both voice only at a cost of $900.00 - $1,200.00 per line)
AccessTel will establish itself as one of the leading suppliers of VolP and VPN solutions, offering inexpensive global voice/data/fax/video over the Internet. AccessTel will leverage its core technology, knowledge and expertise in the Internet Telephony market to dominate the international VolP market. Business to business as well as business to consumer will be pursued. The following three strategic product lines are identified below which will enable domination of the target market/niche. The product lines are all based on proprietary Gateway technologies.
We will also provide connection to their ISP and ITSP.
1. Product/VolP service
VolP service represents a relatively new market segment for Internet applications. AccessTel can deploy this technology effectively maximizing the communication bandwidth with AccessTel's proprietary compression technology embedded in its Gateway hardware achieving the best performance. This application will be cost-effective and provides a 24 hour per day solution for small and mid sized businesses globally at savings of over 50%.
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2. Product/VPN
AccessTel will provide a VPN (Virtual Private Network) designed for any company which is going to connect to its Gateway on the Internet for their voice/data/fax/video applications. All transactions will be processed via the AccessTel server network and may be a combination of wired and wireless solutions, depending on the requirements.
3. Product/Wireless Local Loop (WLL)
WLL will allow customers to make calls in the designated area of a region not connected by a land line and offer connection to existing local telephone network. AccessTel WLL is the latest wireless technology offering Voice/Data/Fax and costs less to deploy than wire line connection or existing WLL solutions offered by Hughes & Qualcomm and is especially useful in rural or rugged areas. AccessTel WLL services will be initially implemented in the Silicon Valley, Taiwan, China and Vietnam.
For example: Vietnam is currently at 2% Telephony to population, with a Government Mandate to increase to 5% Telephony to population by 2,002. AccessTel's WLL equipment will sell for $600.00 per line at a gross profit of $200.00. AccessTel will connect its WLL pilot sites to its Internet telephone service, offering fully automated support through its smart Gateway.
4. Custom Contract Development/Training/Consulting
AccessTel will offer, in addition to the products, a full range of training seminars to companies in need of help in implementing its VolP applications. AccessTel will also offer contract development and consulting to help other companies to establish their VPN solutions on a global basis.
D. Technology
1. Proprietary/Open Architecture Technology
AccessTel's products and solutions are based on proprietary Gateway technology. However, they are compliant to industrial standard H.323. Other firmware components have been added to allow dynamic bandwidth allocation according to the traffic load. As a result, our Gateway Solutions are able to handle voice/fax/data and video transmission simultaneously. Our Wireless Local Loop products are designed with the latest ASIC chip, most advanced CDMA technology and Modular Subscriber Ports to increase the performance while keeping the cost of operation to a minimum. They are also equipped with Bandwidth-on-Demand functions to perform smooth communications while transmitting voice/fax/data and video simultaneously. Our founder group possess several patent pending technologies in the area of Global ROAMING by using SMART CARDS technology.
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We believe that the company's solution will revolutionize the cellular industry by allowing cellular phones (GSM, AMP, CDMA...etc.) with different protocols to interconnect worldwide. In addition, our Video Streaming/Conferencing and Two-way Cable Modem communication technologies will provide the general population with the capability to enjoy our low-cost, high-performance services.
VolP Operation :
Customers will initiate international voice calls from their locations to the local AccessTel Gateway. A secured server will authenticate the customers account and proceed to send the call through the Internet backbone to reach the designation Gateway at the Far East location for termination.
The Billing server will automatically keep track of the time each customer has used and bill them via Internet.
WLL Operation :
WLL is one of the most efficient ways to achieve a higher phone occupancy rate in a short period of time. Infrastructure often costs less than 50% versus using a traditional fixed-line solution. The company will target markets in China, Taiwan and Vietnam. Initially, several pilot sites in those countries will be built. Upon successfully completing those pilot projects, commercial sites will be installed.
Technology Relationships :
For Gateway technology solutions, the company has strategic alliances with major telecommunication companies in the US for origination and Far East countries to provide termination through their fiber optic backbone and local PSTN connections.
E. Value Propositions
By combining our VolP and WLL technologies together, AccessTel, Inc. will offer major US corporations the following advantages:
1. A VPN which saves at least 50% of the Telecommunication cost to reach customers globally via Access-Tel gateway.
2. Access-Tel's solutions are fully automated to allow its customers to check their telecommunication expenses on line via Internet any time. The competitors' solution is to wait until next month to know the expenses.
3. Our Gateways are all equipped with Bandwidth-on-Demand to send voice/fax/data and video simultaneously. Currently, it is not cost effective for our competitors to offer this.
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F. Management Team
Access-Tel maintains a world class management team with direct knowledge and experience in the Internet and Telecommunication industry. It is composed of:
Officers and Key Employees
Founder & Chief Technolgy Officer
Dr. William C.Y. Lee Founder and Wireless Technical Advisor
Dr. Lee brings over 35 years of wireless telecommunications experience and will advise the strategic direction of AccessTel, Inc. and provide significant strategic alliances with major telecommunication companies. He is currently Senior Vice President and Chief Technology Officer for Airtouch Communication, Inc. and has been with Airtouch since 1985. Dr. Lee was employed at Bell Laboratories of AT&T from 1964 to 1979. From 1979 through 1984, Dr. Lee worked for ITT Defense Communications division. Dr. Lee is a pioneer of CDMA Wireless technology and is the author of more than 18 patents in wireless technology. Dr. Lee is a IEEE fellow and is represented in many wireless standard committees. Dr. Lee was recently Chairman of the "Third Generation World Wireless Conference hosted in New Orleans earlier this year.
Lawrence Liang, Founder, President and CEO
Mr. Liang brings over 30 years of seasoned management experience. Mr. Liang is founder and President of several successful corporations including Genoa Systems and Cogito Systems. Specific successes include SuperEGA, SuperVGA and Flicker-Free SuperVGA graphics controllers. Mr. Liang establishes a solid background with a Masters of Science from City University of New York followed by 15 years of engineering at IBM in LSI and DASD design.
Stuart Bockler, Founder, CFO
Mr. Bockler is recognized as one of the "Top Technology Analysts on Wall Street" and is a guest commentator of Technology & Biotech companies on CNN, CNBC and Bloomberg. He has commented and reported investment analysis on over 1,000 companies in print and has been a Guest Analyst on over 200 public shows of CNN and CNBC and Bloomberg TV. He is the President of International Market Advisors, which deploys information to Nelsons International Research Catalog, Bloomberg, First Call and Multex Institutional Research. Mr. Bockler's Early investment analysis of technology companies: ALTR, DELL, IBM, INTC, MSFT, VLSI, LSI and ZE as well as Idec Pharmaceuticals. Sepracor and Biotime in the Biotech industry have been well noted over the past 10 years.
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2. Stock Allocation
The company has authorized 10,000,000 shares of common stock, and 10,000,000 preferred share of which 3,000,000 shares of common stock are issued to the founders of the company with 300,000 shares for Corporate Council and 1,000,000 common shares are reserved for the employee stock options plan and will vest over 4 years.
3. Board of Directors
The three Founders currently make up our Board of Directors. We are seeking qualified business and industry professionals and experts to assist our management team in making appropriate decisions and taking the most effective action.
G. Organization, Alliances and Relationships
Access-Tel has formed important and beneficial relationships with major companies in the VolP Telecommunication industry. A list of these relationships follows:
Joint Marketing Agreements
The company will have many joint marketing agreements with local telecommunications companies and PSTN's. Through our existing business relationships, we already have partners willing and ready to originate as well as terminate traffic for us in China, Taiwan and South East Asia. We also have partners in those areas to promote our WLL and VolP Solutions. A copy of current Memorandums of Understanding are included.
Joint Development Efforts
Another type of strategic relationship that benefits the company is our use current business connections to start generating revenue from first quarter of fiscal year 2000. The Wireless Local Loop project will be joint developed by AccessTel and its local Chinese, Taiwanese and Vietnamese companies.
OEM Relationships
AccessTel also plans strategic Original Equipment Manufacturing relationships with a number of large system manufacturers, allowing the sale and distribution VPN systems without much capital investment from AccessTel itself. This will put systems in the market under the AccessTel's name and will indicate to the user our brand name when the system is operational.
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H. Intellectual Property Strategy
The company plans to protect and exploit its proprietary core technology of secure VolP solutions. It will rely on a combination of copyright, trademark and trade secret laws, and contractual provisions to protect its intellectual property rights in its products. The company does not currently hold patents for its techniques but will file applications in the future. Some of those intellectual properties include: Global Roaming, SmartCard, Video Streaming/Conferencing, two-way Cable Modem and VolP Compression technologies ...etc.
I. Facilities
Our headquarters will be located in San Jose, California. The location will provide needed space for initial development and administration and expansion to meet projected demand over the next 2 years. As we will do most of our development there will be no need for a production facility.
J. Risks
Access-Tel is dependent on a strong stable Internet Service Provider. It is dependent on Sprint, for speed and accessibility of its fiber backbone. The company believes that it will be able to keep up with upgrades by increasing its bandwidth capabilities continuously. Future product plans are not as dependent on this Internet Provider. There is a large selection of alternative providers already available in Silicon Valley.
Market Analysis
A. Market Description
We expect to compete in the VolP market of the Internet Telephony Industry. This market was approximately $13 billion in 1998, according to IDC, and according to IDC, suggests this market will grow to $100 billion by the year 2003. The major forces affecting this change will be falling cost of computers, gateways and the explosion of Internet use. The area of greatest growth within the industry will be business to business VolP. We define our market segment as the International business to business Internet Telephony industry. This segment has been growing steadily in the last few years. Industry experts like IDC and Dataquest forecast 300% growth for this industry in the next few years.
B. Target Market IP Telephony
Due to our lucrative termination rates in the Far East, AccessTel holds "Memorandums of Understanding" on more than 5 million minutes per month traffic to China & the Far East. We have tested our demo version of the Gateway and feel our customers perceive our services as a superior solution.
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IV. COMPETITIVE ANALYSIS
A. Competition
AccessTel products/services offer simplicity in Internet Telephony and focus on small to medium size businesses. Companies that compete in this market are major telecommunications companies which focus primarily on larger companies.
The major competition offer limited services and target a different market segment than the company. AccessTel's strategic partners in the destination countries offer support operations and lower cost for termination.
AccessTel's total solution offers a unique fixed-wire/wireless technology which allows businesses to communicate more effectively without special equipment. Services perform in virtually all situations where a phone line is not available and the customers have limited technical expertise.
V. PRODUCTS AND SERVICES
Access-Tel offers the following products: The VolP and Wireless Local Loop services. Presently, our VolP service is ready for the deployment stage. We first developed our product/service in 1998 and have made many improvements in designs since then.
VI. MARKETING AND SALES
A. Marketing Plan
The overall marketing plan for out products/services is based on the following fundamentals:
The company will rely on a combination of our direct field sales and re-seller channels with an emphasis on establishing a worldwide distribution network. The investment in a global sales organization will have a positive influence in the name recognition of the product line. AccessTel will contract a tele sales organization for the support of the WLL, VPN product line and VolP services.
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B. Sales Strategy
1. Product Positioning
Our product's unique technical advantages lead to the perception that only one solution like this exists today.
A multi-tiered sales strategy:
Our sales focus is: cooperative partnerships such as relationships with local PSTN and telecommunication companies The second focus is on distribution channel development and penetration into the Business to Business market.
Small international businesses are primary targets for using our services.
C. Distribution Channels and Partners
Distributors
Targeting of our distributors is a crucial element of our marketing plan. We will select pre-existing distribution channels that are professionally staffed, stable and well regarded.
Manufacturers Representatives
Because manufacturers' representatives carry several product lines that are compatible with ours. We believe it would be appropriate to select manufacturer representatives carrying other complementary and compatible products and services.
International Market
Our first steps will be in the US market. Due to the nature of our product and services. However, we believe that Asian sales should be very attractive and easy to deploy.
D. Marketing Communications
AccessTel recognizes the key to success at this time requires extensive promotion. This must be done aggressively on a selective scale. To accomplish our sales goals, we require an advertising agency and public relations firm. AccessTel plans to advertise in major trade magazines such as Inc., the Entrepreneur, etc. Upon funding, an agency will be selected and, with its assistance, a comprehensive advertising and promotion plan will be drafted. We will advertise both independently and in cooperation with distributors, retailers, and companies that have joint marketing relationships with us.
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We will communicate on a regular basis with the following:
1. Trade Shows
AccessTel participates in three kinds of trade shows: Internet Telephony, Business technology shows and small business shows.
The company has been involved in numerous programs to promote awareness of its business and products, including the following:
2. Advertising:
AccessTel is developing print media ad campaigns targeted at trade journals with appropriate editorial emphasis as well as catalogs designed to invoke direct telesales. It will also advertise in search engines and other Web-Sites on Internet.
3. Press Releases:
AccessTel is planning on employing under retainer, a full time PR manager to continue influencing the coverage of this cost effective medium.
VIII. APPENDIX
Exhibits
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