Georgia Telephone Assoc.Georgia Telephone Assoc.8888thth Annual Annual

June 22, 2010June 22, 2010Warren LeeWarren Lee

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Leveraging Your Business Assets

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In The Spectrum of Competition…How Do I stack

Up?

Getting spanked because we aren’t doing

anythingKicking A$$ and taking names because we are leveraging our assets

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What are your strongest business Assets?

• Reputation• Customer Trust• Proximity• Customer Loyalty / Relationship• IOC Community willing to share

knowledge• People (?)

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What are your biggest Weaknesses?

• Perception as an Innovator / Reputation• Ability to develop solutions• Knowing what the Customer wants• Sales and Marketing• NIH Syndrome / Control Issues• Lack of focus and seriousness of

purpose for new revenue• People (?)

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Are you your worst Enemy?

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Current Telco Customers…who are they

32%

68%

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Rules for Selling

• Its is always easiest to sell something people already want to buy• It is easier to sell somebody what they already

want than educate them on what they need

• It is easier to sell what the competition doesn’t have• It is even easier to sell what you don’t have…..don’t

do this

• Enter growing not shrinking markets• Customer is always right

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Current Telco Customers…who are they

Known Fact……Rural and Urban Penetration Rates Converge Over Time

Rural InternetPenetration

Urban InternetPenetration

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The Operative Word in Independent Telephone Company is Independent

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How Do You Build New Revenue Sources

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Play To Your Strengths

• Reputation & Customer Trust• What don’t your customers trust

• New and unknown providers• Advanced Internet Services• Cloud Based Services

• Stability fears

• Do your homework, partner to provide comfort and trust to these services• Storage, hosted Office, etc.

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Play to Your Strengths

• Proximity (also Competition’s weakness)• Lends to physical activities

• Installation, training, ongoing service• Geek Squad

• Complex solutions

• Sell What People want to buy• What are they buying elsewhere

• Geek Squad• Netflix, OTT, home networks• Security

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Play to Your Strengths

• Proximity & Infrastructure (also Competition’s weakness)• High Bandwidth Business Solutions (fiber)

• Simple Colo

• Longevity and Reputation• Security

• Internet (desktop)• Physical (Alarm monitoring)• Personal (LifeLock)

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OK Warren that is interesting but so what…..that and $4 gets me a cup of coffee at Starbuck?

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ARPU Expectations

• Security• Desktop: $1 - $3 / month• Alarm Monitoring: $20 - $40 /month• LifeLock: $6 - 8

• Geek Squad• Maintenance: $3 - $10 / month• Installation: T&M

• Storage & Colo• All Custom bids

• Hosted Apps: $10 - $30 / seat

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What you need to Do

• Appoint dedicate resource• Job is to find out what customers want• Job is to partner for solutions• Job is to learn how to market outside footprint

• Visit and Mimic other Successful IOC’s• Retrain staff for service based not

infrastructure based business• Bundles services competition can’t offer• Get head out of A$$

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Conclusions

• This is hard stuff and it won’t go away if you bury your head in the sand.

• If you don’t offer these solutions…customers will find alternate ways to get what they want.