| An SI Board Since October 1999 |
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PentaStar Communications, Inc. IPO may price within the next two weeks. In the telecommunications industry, the next evolutionary step may be recognized by PentaStar's entry as a "communications services agent."
This is an independent Broker who will work for and assist the average company in analyzing their communications needs and shopping for the best deals for long distance, wireless, and internet services, plus new, emerging services (companies are often confused with all the options available with rapidly changing technology). The best part is, it is the service providers who pay PentaStar, not the customer.
The industry is fragmented and local. PentaStar plans to consolidate the industry by acquisition, including strategically located ISPs, and then leverage their sales efforts via these existing local relationships, including cross-selling new communications services. In addition to gaining economies of scale on costs, pooling of sales will help qualify for higher commission revenue from providers' incentive scales: the "whole" is trully greater than the sum of the parts in this model.
Rare for an IPO, this business plan is already making money via its soon to be subsidiary, ICM Communications, a communications services agent formed in 1990.
A new revolution? This "service" provides companies one-stop customized communications design and solution. As providers realize the volume of new business PentaStar will bring them, they will be providing PNTA all types of financial incentives to send more business their way.
A star is born?
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