Business Proposition for Push-to-Talk David J. Sinkula.
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Transcript of Business Proposition for Push-to-Talk David J. Sinkula.
Cellcom Markets
Pops.• Brown County (Green Bay) 230K• WI 4 (Shawano County) 125K• WI 10 (Door County) 131K• Wausau 125K• Appleton 102K• Total Pops. Served 713K
Demographics
• Wisconsin is a state that encourages small business and fosters an entrepreneurial climate
• Small Business Development supported by University of Wisconsin– Eleven SBDC throughout Wisconsin– Provide consulting services and management education
• Northeast Wisconsin heavy in paper industry– Service industry to support paper manufacturing– Small manufacturing innovation is prevalent
• Heavy service industry is within Cellcom geographies
Timing
• Cellcom business customers were asking about PTT feature for their wireless programs.
• Longstanding Cellcom customers began carrying two plans:– Cellcom CDMA voice– Nextel IDEN PTT
• 2003 market research showed a growing share of wireless market was moving to PTT
• Two way radios are a significant part of business communications market.
Target Market
• Brown County Homebuilders Association– Cellcom is official BCHA provider of wireless service– 1,200 members
• Manufacturing support to paper industry • Beverage distributors• Cleaning companies• College maintenance staffs• HVAC service providers
Product
• Kodiak Networks Platform– PTT – One way, half duplex real-time voice
application– Uses existing wireless voice networks– Fastest call set-up time (Non IDEN)– Lowest intra-call latency in the industry
• Kyocera 3250 – Bar phone– First phone available on Kodiak platform
Price
• Handset– Kyocera 3250 bar phone $99.95
• Monthly Access– PTT 200 $10.00 (Additional calls $.15)
– PTT Unlimited $20.00
Requirements for Success
• PTT service comparable to Nextel– Call setup latency of 1.5 seconds or less– Ease of programming PTT contacts– Handset that was perceived as rugged
• Pricing comparable to Nextel• Handset price• Promotion• Sales/service support
Experience - - Year One
• 1,000 subscribers in BCMSA in first 6 months• PTT Access Breakdown
– 200 calls / month 30%– Unlimited 70%
• Incremental ARPU - - $17 per PTT user
Challenges - - Year One
• Handset – Kyocera 3250 Phantom– Durability in harsh environments– Chirp volume limitations: Did not know they were getting a
call.– Market demand for clam shell form factor and more rugged
• Kyocera PTT Slider– Slow sell through due to small size
• SMSC– Did not have SMS roaming/roaming gateway – SMS traffic from text messaging & PTT SMS overloaded the
SMSC.
• Inability to Roam– Could not sell to customers on fringe of Cellcom network– Could not sell to customers that covered large geographies
Kyocera Slider
Year Two - - Relaunch
• Handsets– Kyocera 440 Phantom
• More Durable & Rugged• Louder chirp
– Clamshell form factor still a challenge
• Installed roaming gateway (now can originate PTT call off network)
• Launched SMS Roaming
• Switched to digitally optimized PRL – ubiquitous SMS coverage
• SMSC upgrades, includes redundancy and scale improvements.