To: Lance who wrote (17472 ) 5/21/1999 7:54:00 PM From: Kenneth R. Moss Read Replies (1) | Respond to of 22810
To the Thread: E-mail from Dave: Ken Moss ********************************************************May 21, 1999 Dave – The questions keep coming from people interested in our service. Again, I'll answer as specifically as I can. 1. What is our target market? There are two parts to this question. We are targeting specific professional demographics for licensees and we are targeting specific geographic locations to build gateways. a) Licensees. We expect initial Master Licenses for a metropolitan area to cost $US 100,000. We are using the traditional formula for franchise fees based on three years net income. A licensee is an investor or investor / operator that wants a primary business or an additional business on top of a symbiotic business. For example, a sales professional might be looking for his own opportunities. They may want to switch from a real estate profession or something sales related. A symbiotic business is an Internet Service Provider, computer retailer or a flat rate long distance calling business. The Internet telephony gateway can operate in tandem with these types of businesses. b) Consumers. We have built a strata of consumer groups to target. Single adults and couples with no children are our primary demographic targets for the long distance service. They tend to be very profitable. We use demographics to determine our sales packages to try and generate the most profit possible. 2. I made a comment earlier about our program not having to be the lowest cost per minute. Why do I feel this way? If our program were only based on a singular product such as long distance, I would be more concerned. We will offer different products based on the technological capability of Internet Telephony. Also, the race to be the lowest price is simply ridiculous. One company is offering free long distance in exchange for demographic information and advertising requirements. The fact is, even though long distance prices are dropping there are many different ways to price long distance to be profitable. You don't have to resort to schemes, scams and high-pressure tactics. Long distance is very similar to the insurance industry. Certain types of people behave in consistent ways. We have programs for pricing that work to get the most profit out of a pricing program. 3. When do we expect to be operational with an Internet Telephony gateway? Actually, we are ahead of schedule. We have had terrific success in sourcing gateway partners to work with. Voiceover IP is exploding on a global basis. There are many companies focused on the technology and building gateways. We are focused on building customers. It is a plan that is working terrifically. We expect to be up and running with an Internet Telephony Gateway in the next eight weeks. Originally we targeted September of 1999. The questions we are getting are terrific. Please keep them coming. We want to keep everyone informed. Mark Jensen