UNDER CONTRACT The Company is a Telecommunication service provider of high quality long distance services for small to medium size businesses. They have also recently developed a forth entity which provides wholesale VOIP calling solutions to third party resellers.
The Company offering currently consists of four entities, three of which provide long distance service for small to medium size business and the forth which wholesales VOIP services to third party resellers. The two long distance companies provide services on a one price, unlimited usage basis. They currently charge $29.99 per month for the first line and $24.99 per month for additional lines. The company does not require the long distance customers to sign a contract and does not charge cancellation fees. They consider this to be a valuable sales tool which separates them from their competition. This formula has resulted in a very successful and highly profitable business model and has led to the substantial revenue and profit growth experienced by the company.
Through industry leading customer service, competitively priced product offerings, superior network quality, and an unparalleled business opportunity for their independent agents, the company builds long-term loyalty with their customers.
The trend for their services is growing at a phenomenal rate as witnessed by their revenue growth over the last several years. The growth has been achieved after switching to the one rate, unlimited usage program. The strategy to market only to business clients using contracted telemarketing companies has also been very successful as these customers tend to be much more stable than the residential customers the company was previously serving.
In 2006 they began filing for a change of product with the state and federal agencies and in 2007 began selling the one rate, unlimited usage plans exclusively. The revenue reported by the company is the cash received from their billing company. This revenue is the net amount received from the billing company after local exchange carrier fees, bad debt, billing company fees, reserves and other miscellaneous fees have been deducted and/or paid by the billing company.
The VOIP entity provides services to third party companies who in turn resell the service to the consumer. This business is still in its development stage. The company provides a marketing web site to the reseller and bills them for the amount of time they sell. They have high expectations for the development and expansion of this new business model.