Business Plan Draft

Plan Summary

Changes in the communications industry have resulted in a unique niche for e-mail messaging, and the Internet has become a multi-billion dollar business. As messaging devices get more complex, it has been found that the basics still work. With low infrastructure costs and strategic partnerships services and coverage areas can be expanded while developing new business customers with a unique mix in service bundling and marketing.

Low infrastructure cost, marketing, and dependable low-cost service will enable the company to establish a recurring revenue stream, expanded customer base, and future appreciation of assets (frequencies).

The call Center for activations and disconnects is centralized. The billing and technical system monitoring and engineering has also been centralized for increased efficiency. The company's experience in pager repair and marketing allows all of their customers and partners to obtain and maintain pagers at the least available cost. Refurbished pagers allow their marketing to focus on the services that they provide rather than the cost of the pager equipment to get started. Lower initial costs of equipment and services mean more subscribers. They also have a unique geographic location in Odessa, Texas. The secondary and tertiary markets in west Texas are an excellent example of rural markets awaiting new wireless services covering their smaller markets. Their experience in marketing of these tertiary markets is a great resource.

Business Description:

The company offers infrastructure to provide and the following services:

• E-mail to alpha pagers
• Alpha paging
• Web site hosting
• Numeric paging
• Voice mail

The company presently offers these services in the Rio Grande Valley and in Corpus Christi, Texas. They have transmitter sharing agreements to provide coverage in San Antonio and Houston. They hold exclusive frequencies in Texas, Louisiana, Southern Mississippi, Southern Alabama, the panhandle of Florida to and including Jacksonville. They also hold licenses in Kentucky and Southern Indiana. The following are included:

Marketing:

The company's Marketing in the Rio Grande Valley has been through consignment stores. The company has approximately 135 Quick marts, Gas Stations and other retail stores that maintain an inventory. They have, at times, realized 5 to 12 pagers per day in sales from these consignment stores. They are continuing to add more consignment stores in the Brownsville, Harlingen, and South Padre Island areas. With an additional 100 consignment stores they should realize an increase to 12 to 16 pagers per day. As they expand to additional markets they will use this consignment store method to minimize their personnel and office expense costs.

A business customer base is another key to success in building a recurring revenue stream. They plan on targeting this business customer base, by combining Internet web hosting (almost exclusively business) with Internet e-mail messages forwarded to an alpha pager for instant access to e-mail.

Secondary and tertiary markets have been identified as the markets with the highest interest and yet the least availability to new wireless services. Primarily by targeting these secondary and tertiary markets a business base can be built of customers in markets that have not been saturated.

Their target customers will be derived form business customers in these markets. A large base of business customers are easily identified by local regions. Their extensive contacts with farmers' cooperatives cover their initial markets and allow coverage for these businesses while in the major metropolitan areas. Farmers and the coops that help organize them represent a large untapped market for communications. Many of these rural markets are hungry for communications. Most coops don't have web pages, rarely utilize e-mail and are dependent on weather and market changes.

Well-established small telephone coops have been struggling as they see deregulation of the telecommunications industry cut into profits. These businesses correspond and bill on a monthly basis to a longstanding customer base. By utilizing their name recognition to small markets it enables them to offer these wireless services to their customers. These small phone companies are looking for ways to increase their revenues. Bundling wireless services and enabling them to utilize their own name recognition can accomplish this.

One of the keys to obtaining customers and providing superior service is the ability to obtain, maintain, and repair pagers at a reasonable cost. New pagers can cost as much as $50-$75 each. Through their strategic partners, they will be able to obtain pagers that have been refurbished for as low as $10-$15 each. This will provide a huge advantage in allowing them to provide equipment at virtually no cost as the customer signs up for service. By utilizing one frequency, they minimize inventory and maximize availability of pagers for their customers and affiliates.

Strategic Partners

The company will make strategic partnerships to enable them to reduce infrastructure costs, expand coverage, expand services and allow them to offer their services and equipment at the most reasonable rates. The company will furnish and maintain infrastructure including billing.

Their transmitter sharing agreements with other companies allow increased coverage areas in San Antonio, Houston, New Orleans, and other major markets at no additional cost to their team. This expands their coverage area substantially.

Business Value

Frequencies are a limited resource. The frequency they are operating on may be used for many things in the future and its value will certainly go up as frequency resources become more limited. They have combined strategic companies to ensure the ventures success. Their strategic partnerships will develop, market, and maintain the company.

Equipment List follows: