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To: Errick who wrote (17192)5/13/1999 4:51:00 PM
From: david simns  Respond to of 22810
 
I just received this e-mail thought I would pass it on.

Subject:
[Fwd: MetroPlus]
Date:
Thu, 13 May 1999 10:27:38 -0700
From:
David DiRicco <davidjdiricco@worldnet.att.net>
To:
David Di Ricco <davidjdiricco@worldnet.att.net>,
Glen Dobson <gdobber1@aol.com>

Subject:
MetroPlus
Date:
Thu, 13 May 1999 09:42:19 PDT
From:
"Mark Jensen" <mjensen80@hotmail.com>
To:
davidjdiricco@worldnet.att.net

May 13, 1999

Dave –
We continue to get excellent questions from your shareholders. I will
endeavor to answer them as clearly and accurately as possible.

How well will this service be accepted by the business community?
My belief is the business community is driving Internet Telephony. Many
companies are putting in their own systems (usually at an inflated cost).
All businesses are looking to improve their communications and save more
money. MetroPlus is using flat rate Internet Telephony calling as a base
line product on which to build. Our marketing plan includes direct
marketing to the business community.

How will we provide a better service?
I take this question to mean how will we be competitive in the market. I
can tell you one thing for sure. Everyone who is basing their business on
being the lowest cost provider in the market is going to have problems. Our
program is not based on having to be the lowest cost per minute provider.
We are building relationships with consumers and businesses and educating
them about telecommunications options. Our plan is based on adoption rates.
Adoption is the process of integrating new technology into your life.
While a small part of the population is hearing about Internet Telephony the
bulk of the population is still trying to figure out long distance savings
plans. Why, half the world has yet to make a single phone call! Maybe
that's why Gates is investing so heavily in wireless in third world
countries.

We provide a better service because we focus on customer integration of
technology instead of flogging the lowest price long distance savings plan.
We actually calculate true customer value and treat the customer
accordingly.

Are we building our own gateways or using someone else's?
We are doing both. The number of companies building gateways is exploding.
I don't see the need to spend millions of dollars duplicating the same
technology. We are building our first gateway in Vancouver. We will tie
into other networks accordingly. Our philosophy is, “create, manage and
build a solid customer base by providing the best value and building
relationships.”

We are currently in negotiations with different providers to expand the
calling area. We are very excited about the possibilities.

Are we using client devices?
At the current time we are not using any devices. The service runs from
the phone line. However, in saying that, I need to clarify that we are
exploring the possibility of using other types of services as well. We call
it the “product continuum.” Some products are good for some people and not
for others. As we build from our 5,000 customers we will be testing other
services and products we may be able to sell. It all has to fit cohesively
into our program.

Are we providing billing detail or are we a pre-paid service?
We are using a billing platform. We are converting every over to
pre-authorized payment. The goal is to build a customer base and provide
the least opportunity for negative buying decisions. Pre-authorized payment
does just that. We will be offering pre-paid phone cards as part of the
service. We are targeting specific groups of people in the market that are
most inclined to purchase pre-paid phone cards.

Do we have some type of exclusive on the equipment / technology?
We have exclusive marketing technology. We do not have exclusive Internet
Telephony technology. We don't want any. My feeling is we don't want to
jump on the technology treadmill and try to compete for the next greatest
innovation. To quote AT&T: “Data, voice, video and audio will be on the
same line, or multiple lines – with the customer unconcerned about just how
that is achieved.”

Our exclusive technology is on the marketing side. We have several
innovative marketing techniques we are deploying:
1. Adoption - our marketing plans are based on the rate of adoption of
innovation within our target markets. We aggressively market but we are
more effective and efficient than the competition.
2. Stages of Change – consumers adopt technology in stages. We categorize
the stage and take the appropriate marketing steps. We want to encourage
but not badger the customer into buying our services. We create awareness
and focus on integration.
3. Customer Involvement – we know that 20% of the people have to potential
to be very involved in our company. Approximately 60% will be moderately
involved and 20% will brand switch whenever it is convenient for them. We
always strive to build involvement in the customer base.
4. Community Development Marketing – Our most innovative marketing tool is
called Community Development Marketing. Via the Internet and the telephone,
we segment a community in which we have an operating license. Based on our
own formula we market according to the community, as it is laid out, not as
how we want it to be. The key is to integrate with the community and not
force our message into the market. It is quite exciting and enormously
effective. Our marketing costs are generally 5% to 10% lower than
traditional marketing. And everything is systematized and measurable.