Here is a sampling of what is going out:
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
NPEC Company Press Release MetroPLUS Update LAKE ELSINORE, Calif.--(BUSINESS WIRE)--May 10, 1999--NP Energy Corporation is pleased to announce that its telecommunications arm, MCC MetroPLUS Communications Corp. has begun marketing operating licenses to its Internet Telephony network currently being built in Vancouver, British Columbia. The program is called the ''Talking Directory(TM) Gateway.''
Internet Telephony uses the Internet to send audio between two telephones in real time. Customers using the Talking Directory(TM) Gateway will be able to pay one flat rate for unlimited long distance calling between points on the system.
MetroPLUS is selling operating licenses to quickly expand the operating area of the new network. MetroPLUS licenses the use of the Internet Telephony network to operators in specific geographic locations. A Licensee owns and operates its own business using the MetroPLUS technology. Licenses are sold by geographic location and population. Qualifications for a licensee are similar to that of a standard franchise.
MetroPLUS is targeting 31 cities in British Columbia, 7 in Alberta, 4 in Saskatchewan and 18 areas in Washington State. MetroPLUS is projecting completion of the Vancouver network in British Columbia by September 1, 1999.
In addition, MCC MetroPLUS Communications Corp. will be changing its name to MetroPLUS Communications Technology, Inc.
On behalf of the Board of Directors
Per: Ray Lazo, President
-------------------------------------------------------------------------------- Contact:
Investor Relations 1/888-423-6993
Analyst sees $60 billion IP phone market By John Borland Staff Writer, CNET News.com January 8, 1999, 4:45 p.m. PT The worldwide market for IP-based telephone service will skyrocket to $60 billion by 2005 as telephone companies make "radical" network changes, according to predictions by a London research firm.
The prediction, made by Ovum Research, far outstrips most other analysts' expectations for how quickly telephone companies will replace their traditional infrastructures with Internet-style voice traffic.
Senior Ovum analyst Susan Sweet said that pressure from corporations, some of which have already started to adopt Internet Protocol (IP) functions and applications inside their own internal telephone networks, will force the big telcos to pick up the pace in shifting their infrastructure towards IP traffic.
"As IP becomes the basis for wide-area corporate communications, so the pressure from corporate customers will grow on telcos to adopt IP in their backbone," Sweet wrote.
IP telephony is the use of Internet packet-switching protocols to transmit voice traffic, instead of the traditional network of circuit-switches. The technology has been available for several years, but the quality of calls transmitted this way still ranges widely.
Sweet predicted that corporate use of applications such as "unified messaging" services--which integrate voice mail, email, pages, and faxes--and IP-based call centers would help boost the use of IP telephony on private networks and ultimately pressure telephony companies to modify their networks to follow suit.
Already, some of the biggest telephone companies have taken steps in this direction. As a part of its merger with Tele-Communications Incorporated, AT&T has said it would start moving its cable based local telephone services towards packet-switched Internet protocols by the end of next year. The company also is pushing IP telephony through its WorldNet Internet service and in relationships with ISPs worldwide.
By 2005, the U.S market for IP telephony will have climbed to $29 billion, Sweet forecast. Western European will be close behind, with a market worth $13.5 billion, she said.
Other analysts are still less bullish on the speed of this transition, however.
"You're talking about radical shift in the way voice is carried," said Bruce Kasrel, a telecommunications analyst with Forrester Research. "That doesn't happen overnight, especially in the telecom industry."
Kasrel said he thought it would be two to three years before most of the big telcos begin integrating voice IP infrastructures into their traditional networks, and that it would take another two to three years beyond that for substantial progress to be made.
"Even that's probably optimistic," he added. But he said that if the telcos around the world did decide to move quickly, Ovum's bullish figure could be in the ballpark. "If carriers decide that packetized [voice transmission] is the way to go, then it could be even bigger than that."
Analysts noted that consumers would not necessarily notice much difference if telephone companies do change their infrastructure to handle Internet-style voice transmissions.
"Does that really matter to consumers?" Kasrel asked. While the cost of phone service might drop slightly due to packet-switched technology's efficiency, consumers would simply still pick up a traditional phone and dial as always, he said. "If the transport mechanism changes, they won't know." |