Sunday, January 15, 2006 4:06:41 AM
Telatinos Executive Summary
Wanted to get a copy of this posted ASAP, because the old Telatinos site is (conveniently) gone for good. I was able to pull this out of a Google cache file. Love the stuff about the marketing plan. Real incriminating too, BECAUSE NONE OF IT EVER HAPPENED! Specifically, reference the items marked in boldface.
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TELATINOS CORPORATION
JBC - SJO 7219
2011 NW 79th Ave.
Miami, FL 33122
USA
A TEXAS CORP
EXECUTIVE VOIP COMMUNICATION SERVICES FOR CENTRAL AND SOUTH AMERICA
TERRITORY INCLUDES
Cuba, Dominican Republic, Puerto Rico, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay, Venezuela
www.TELATINOS.com
www.TELATINOS.net
www.IPvX.US
www.IPeXtreme.US
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Page 2
THIS IS NOT AN OFFER TO SELL SECURITIES
This document contains proprietary and confidential information regarding TELATINOS INC (hereinafter, "TELATINOS," "the Company"), and is provided to potential investors for their use in evaluating whether or not to pursue an investment into the Company.
The enclosed documentation is an executive summary of the Company, its subsidiaries and its operations. It does not purport to contain all material available.
While the Company has endeavored to include all pertinent information available to date herein, the Company believes to be reliable and relevant, no representation or warranty, express or implied is made as to the accuracy or completeness of such information contained herein. Therefore the Company expressly disclaims any and all liability that may be based upon such information including errors therein or omissions thereof. Nothing contained in this document is or should be relied upon as a promise or representation as to the future.
This document should be utilized only to evaluate investment interest and the material contained within this document may not be reproduced without prior written consent of the Company.
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OVERVIEW
Telatinos Inc. (a Texas Corp) through its wholly owned subsidiary ipXes inc. (a Nevada Corp) which operates the company‚ has assets in Central and South America. We are a facilities-based, service provider of high quality Voice over IP (VoIP) solutions to businesses and executives.
Our market offering to executive residential and business customers is a communication port for local, long distance and international calls, an expanding array of the best executive phone services, all utilizing VoIP. Telatinos and its subsidiaries manufacture and purchase a range of products, seamlessly merged with state of the art suite of executive phone services that is resold through Central and South American Internet Service Providers, Telecommunication Service Providers and Cable Operators in strategic markets.
Through our software laboratory subsidiaries we provide a portfolio of IP multimedia based solutions ranging from subscriber based voice and video services, to SIP based infrastructure design and deployment, to broadband customer premise equipment design and implementation services, as well as engineering design, manufacturing and distribution of wireless broadband technology.
Through strategic partnerships and joint venture agreements in Central and South America, TELATINOS has put in place a solid foundation for immediate revenue generation and earnings growth through prudent expansion throughout the following countries:
CUBA, DOMINICAN REPUBLIC, PUERTO RICO, COSTA RICA, EL SALVADOR, GUATEMALA, HONDURAS, NICARAGUA, PANAMA, ARGENTINA, BOLIVIA, BRAZIL, CHILE, COLOMBIA, ECUADOR, PARAGUAY, PERU, URUGUAY, VENEZUELA
Customers benefit from existing point-to-point telecommunications routes and circuit switches, voice over internet protocol (VoIP) servers, and direct circuit connections, all of which currently provide international long distance services to other telecommunications.
Telatinos has developed a wide range of services, features and functionality that the large‚ "branded" carriers offer. Telatinos will offer these services and features at discounts to the competitors price with the following significant differentiators.
- we offer unlimited peer-to-peer‚ "on-network" calling, to or from anywhere in the world, 24 hours a day, seven days a week.
- Included in the flat monthly fee, any subscriber with internet access (broadband) can call another subscriber with internet access (multiple simultaneous calls or multi-party conference calls), using the same telephone and hardware that consumers are accustomed to (no headsets and microphones tied to your PC), experiencing unparalleled sound quality on our robust VoIP network without having to think or worry about long distance calling charges.
- A subscriber may assign a "frequently used" area code(s) to his account in any area code(s) that he calls most. Any called number in that area code (s) gets
charged as a local call.
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INDUSTRY OVERVIEW
Annual revenue from global voice telecommunications now exceeds $1 trillion and is growing at a rate of 18%. This is an impressive statistic, but easily misunderstood. In reality, the global telecommunications and IT industry is in a state of upheaval. In excess of $1 trillion had been invested in network construction between 1996 and 2001, primarily to support a then-projected dramatic rise in data traffic. Although in North America and Europe we enjoy an 80% + telephone penetration rate and in most major metropolitan areas more than one phone line per person (100% + teledensity), most of the world's population still does not have access to reliable phone service, with teledensity rates of less than 10% in many emerging markets and modernizing nations.
Thanks to the overdevelopment of data capacity in almost every major city on Earth, VoIP usage is growing at a dramatic rate, and will continue unabated for many years into the 21st century. In much the same way as cell phone usage quickly leapfrogged pager subscriptions (with a poor land line infrastructure, how do you call the number on your pager?), many communities around the world are not installing new POTS lines (Plain Old Telephone System) and are simply installing last mile lines or wireless access to this overbuilt fiber optic data network. In other words, if you have an account with an ISP for internet access you don't need an account with a carrier for local and long distance, too. If you do have an account with a local and long distance carrier, go ahead and cancel it, as the ISP, with our unique service and technology, replaces the old phone company's first and last mile and they indeed become irrelevant.
While data transmission volumes have continued to rise as well, they have not done so at anywhere near the rate necessary to economically support the new fiber optic network capacity rolled out around the world, exponentially increasing data transmission volumes were the assumptions underpinning much of this historic hard network investment. Consequently, many carriers are only utilizing 5-10% of their data capacity. Global voice traffic continues to rise, but was often relegated to second-class status in the eyes of large carriers as they sought to provision data networks first and foremost. The internet boom promises of zillions of bits of data (e-commerce, downloading websites and streaming media, etc.) transmitted to every PC, laptop and handheld device in every office, home, car and backpack in the world led to the over-development of fiber optic networks to and from major hubs worldwide. Global Crossing, AT&T, MCI/WorldCom, Cable & Wireless, KDD, Deutsche Telecom and the like all competed in a stampede to be the first to wire the world, and they all won or lost, depending upon your perspective.
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This massive over-investment in raw transmission capacity has caused a shakeout throughout the telecom industry, from manufacturers of switching and routing equipment through small CLECs (Competitive Local Exchange Carriers) and all the way to the giant global carriers. Companies that borrowed heavily to finance network construction will not survive, but companies that take advantage of cheap access to this infrastructure and market to retail consumers effectively will thrive.
Even as this drama has played itself out, two sectors of the telecommunications landscape have continued to thrive: international long distance and VoIP (Voice over the Internet Protocol). Unlike domestic (U.S.) long distance, international long distance traffic has continued to rise even as prices have, overall, remained stable. Cutthroat competition has caused per-minute prices to fall dramatically to the point where little operating margin remains in long distance transmission for all but the largest carriers who own their networks outright, and for those who can utilize these networks cost-effectively and maintain "sticky" customer relationships.
Voice over the Internet Protocol, in layman's terms, essentially allows the owner of a "softswitch" (telecom switch with specialized software suites) to receive voice (analog) signals at the switch, convert the signal to digital (data) and transport them in the form of zeroes and ones over the worldwide web either in a roundabout way like an email message or over a VPN (Virtual Private Network) directly to another softswitch anywhere in the world. The latter is slightly more expensive than pure web-based signal transmission (essentially free), but the user is guaranteed high sound quality when using a "private" line.
A VPN route, originally intended for secure emails and website downloads can transport voice signals at a small fraction of the cost charged by the major carriers for voice capacity. We market a voice telephony service that essentially behaves like a data network seamlessly and transparent to the consumer, utilizing all softswitches, data routers and IP phones, using dedicated VoIP routers and servers in order to maximize the service quality.
Other wholesale carriers have pioneered this vast expanse of the VoIP market. A good example of "pure play" VoIP carrier being ITXC (NASDAQ: ITXC) and the hybrid International Discount Telecommunications (NYSE: IDT). ITXC co-locates their softswitches in data centers and ISPs and carries their traffic exclusively over the Internet at very low cost and is beginning to market directly to the retail consumer. IDT utilizes mostly dedicated fiber but pioneered web-based service to retail market niches with Net 2 Phone. Both companies are less than ten years old and each carry over a billion minutes monthly (approximately 2% of global traffic). Their operating margins have held steady at 15% - 18% and both are EBIDTA-positive.
Other recent retail entrants into the fray are Vonage, Packet 8, Skype and FreeWorld Dialup, - which essentially re-markets to consumers the wholesale VoIP service of SBC - has accumulated over a 160,000 subscribers for their $29.95 flat rate unlimited calling plan since launch in late 2003, and Skype has processed over ten million free PC softphone downloads since January 2003.
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Leveraging of our management's relationships, knowledge of global connectivity solutions, using our unique marketing approach and pricing advantages, TELATINOS captures significant market share very quickly. Our appeal to users of its telecommunications network and services around the world has already been well received.
The telecom industry worldwide in 2003 exceeded a trillion dollars in total global revenue, yet there are substantial regional differences as a consequence of economic inequality. In most of the developing world there are fewer than ten phones per hundred people. (This is commonly referred to as "teledensity").
Rapid growth will continue to be the most notable feature of telecommunications markets around the world, and TELATINOS will provide low-cost international long distance services as these markets mature. Just as markets are maturing and teledensity rates are on the rise throughout our primary target regions, we take advantage of significant technology and regulatory breakthroughs.
Improved VoIP Quality: It started out sounding very poor, "choppy" speech, half-duplex, echo and a significant delay commonly referred to as latency. Now, with high quality hardware and software solutions, VoIP conversations are virtually indistinguishable from traditional voice calls. Since voice quality is assured, TELATINOS can focus on sales of the service.
Features Being Added: It took 125 years to bring the circuit switched phone network to its current state starting in 1876. Within 10 years of its inception, IP Telephony has surpassed the circuit switching in cost of service, features and capabilities.
Hardware Becomes More Resilient: Customers are demanding higher grade telco hardware platforms and interface devices, and the major makers have responded. TELATINOS can choose between hundreds of suppliers making it possible to deliver peripherals that are interesting and inexpensive to our distributors and customers.
The Regulators Are Paying Attention: PSTN access charges and international settlement charges are being reduced. Regulators are trying to balance universal service subsidy needs with the interest in promoting competition and in supporting the compelling commercial benefits lower-cost telecom services bring to their economies.
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ADVANTAGES
The Company has designed a standard model for IP to IP (caller-to-caller) service not just in select markets, but scalable and deployable anywhere in the world. Our integrated technical solutions and IP desktop phones and cordless handsets are state-of-the-art. We also provide suites of services such as those typically offered by traditional telephony service providers but not VoIP carriers, such as:
- Calling cards with PINs that access your account directly when not near your phone;
- Wholesale international long distance rates worldwide when calling from your IP phone to a non-IP phone;
- 800 number access to international voice or data gateways for IP products;
- Voice mail, voice mail-to-email, caller ID, number portability and teleconferencing.
Planned Deployment Schedule
BEGIN MARKETING OF IP-IP, IP-PSTN, PSTN-IP SERVICES (COSTA RICA) Feb. 2005
RECRUITING AND TRAINING OF CAUSE-RELATED AND NETWORK MARKETING DISTRIBUTOR LEADERS Mar. 2005
OPENING OF BRAZIL MARKETING OFFICE (Honolulu, HI) Q2 2005
OPENING OF CUBA TELATINOS Ltd. Q2 2005
OPENING OF PANAMA OFFICE Q3 2005
OPENING OF ARGENTINA OFFICE Q4. 2005
EXPANSION OF MARKETING EFFORT IN ALL COUNTRIES REPRESENTED
Through '05, 2006 & 2007
Sales and Marketing
Under the leadership of TELATINOS senior management, an experienced direct sales force and marketing / account management team will leverage long-term industry relationships and expertise.
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EXECUTIVE MANAGEMENT
JON MILLER
PRESIDENT & DIRECTOR OF MARKETING
- EXHIBIT B (RESUME)
EXIT STRATEGY
Although it cannot be guaranteed, we can predict with certainty that well-managed, fast growing voice over the internet telecom services providers will be Wall Street darlings in the near future. We fully intend to maximize the investment community's growing awareness of this technology, our experience in the sector, and our market timing. We can predict with certainty that, as we achieve our revenue and profitability targets, and after only capturing less than one half of one percent of the industry's market share, our company will be an attractive buy for the public, institutional investors and / or established telecom sector leaders.
VoIP and WiFi Acceptance in the Mainstream
Generally, early adopters raving about a new gadget or application are not a reliable indicator of a technology's success in the marketplace. Tech geeks' affinity for VoIP was prevalent in the late-1990s, however the mainstream public's acceptance has not noticeably shown momentum until 2003. Literally hundreds of news articles and reports have been published during the past six months regarding VoIP and WiF-enabled telephony. A common view shared in each article is that the future of communications is clearly focused on VoIP and the support sectors surrounding it. Additionally, industry experts agree that young and startup communications enterprises are more likely to benefit from this emerging trend as they are more agile and responsive to the changing times. The following are just a sampling of the findings:
Wharton Business School - University of Pennsylvania: Schoolar, an industry analyst, points out for example, that three years down the road there are likely to be some four million VOIP subscribers. That is an impressive increase over the 378,000 who are expected to sign up for VOIP in 2004, but those four million pioneers will still represent a tiny fraction of the 113 million households where the traditional phone call will still hold sway. (US market only)
Synergy Research Group: The overall revenue for WiFi wireless networking gear was up more than 55 percent in the fourth quarter or 2003 to $751.9 million, said in a report Tuesday. Revenue was up about 40 percent, to $2.5 billion, for the year.
Residential Voice-over-IP: Analysis & Forecasts, a new report from Parks Associates, interest in VoIP service is consistent among both broadband (52%) and narrowband (48%) households.
INC Magazine: There is no risk of everyone swooping out and buying VoIP phones and eliminating the plain old telephone service (POTS) overnight. However, in the next five years there is going to be some serious worry at the traditional phone companies about how they will make money. All the investment in the late '90s in Internet backbone construction (much of it by companies now in bankruptcy) is starting to look as if it might be good for something other than pornography and trading pirated music. "Big companies, which are traditionally where phones cost the most, will be the first to broadly adopt VoIP," predicts John Todd, a VoIP consultant. "Even the slightest perception that VoIP is less reliable than normal services will cause companies to hedge their bets. However, when you can pay 30% of what you're paying now, very often there is considerable interest in a new technology when the ROI turns positive in the first four months . For some companies that are voice-intensive, this can mean the difference between a humdrum year and a strong EBITDA positive, which perks up everyone's ears these days."
Business Week: In the 127 years since Alexander Graham Bell discovered a way to "talk by electricity," phone calling has changed relatively little. True, the world today is awash in advanced services such as call waiting and caller ID, and of course cell phones, but those are minuscule advances compared with the technological evolution -- in much less time -- seen in aviation, agriculture, medicine, automobiles, and most other industries that are basic to American life. This could
be the decade that phones finally make their move. Voice over Internet protocol, or VoIP, sometimes pronounced "voyp," could be the transformative technology that will redefine the phone and the way people use it. With VoIP, calls are transferred in digital packets over data networks instead of over circuit-switched copper wires. This means any corporation with a network or any individual with a $30-a-month broadband connection can make calls without paying the phone company. Moreover, once voice is on the Net, it becomes just another piece of information that can be manipulated in many more ways than traditional phone calls can -- which should lead to rapid innovation and improvement in voice communications (see BW Online, 11/11/03, "Why the Bells Should Be Very Scared").
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Wall Street Journal: Billions of dollars are at stake as SBC, AT&T and others strain to figure out the implications of the Internet for the $300 billion (voice) telecommunications industry. Because of the Internet's regulation-free status, phone calls sent as tiny electronic packets over the global computer network avoid all of the regulations, taxes and fees of the traditional public phone system. FCC Chairman Michael Powell tipped his hand on the coming rulings. In likening Internet voice applications to e-mail and instant messaging, he hinted it would be defined as an information service, free from the labyrinth of regulations and fees related to telecom services.
The Internet presents both promise and peril for traditional phone giants, which conduct their business in a heavily regulated world. A decade ago, consumers had one choice for local phone service and three major long-distance options. Now, cellular-phone providers, cable-TV companies, Internet start-ups and others are all vying for a chunk of the telecom market. And savvy consumers, tired of mounting taxes and fees on their monthly bills, are increasingly searching for cheaper alternatives.
Companies providing the type of PC-based Internet voice connections Mr. Powell recently described could quickly pick up customers by offering lower, untaxed rates. The promise already is causing "a communications revolution," says Jeff Pulver, chief
executive of Free World Dialup's parent, Pulver.com. "Within the next 10 years, it's quite possible that 50% or more of voice traffic will take place off the traditional public telephone network and run on the Internet, wireless or other systems," he says.
Telephony Online: Reported in March 2004: Imagine this: A consumer based in California could have a broadband connection with a VoIP phone service. The consumer could carry the "broadband box" when they travel and literally plug-in to the hotel's broadband connection and talk back to the U.S. without paying an extra penny. So, take your broadband phone on your next trip to Europe or Asia and you are sure to save a bundle if most of your calls are back to the U.S.
Likewise, if the consumer subscribes to a VoIP service in the U.S. and physically decides to "permanently" locate the box with their friend or business associate abroad, they are able to call back to the United States without incurring any international long distance charges. So the next time you a dial a local phone number to call your colleague, it may actually be ringing on a VoIP phone sitting in Tel Aviv, Israel. This allows any organization to have regional representatives through out the world‚ all with local U.S. numbers.
These types of services not only provide excellent toll-quality, but also bypass most international tariff agreements, saving the consumer a lot of money.
E-Week: March 30, 2004- SANTA CLARA, Calif., Voice-over-IP services have reached the "tipping point," executives said here Monday, shifting from international to domestic communications. Executives at the Voice On the Net show said that while users understand the advantage of IP calls that aren't metered by distance, cable and especially DSL providers need to offer "naked" DSL service that allows users the choice of what infrastructure they will use to make voice calls.
Although the Internet can be used to transmit data in a variety of forms, VOIP services have been the low-hanging fruit that businesses and carriers have first turned to. Bernd Kuhlin, president of Siemens ICN, said in a keynote address Monday that he refuses to use the term "VOIP," referring to "1Gip" and "2Gip" networks to indicate the first and second generations of IP services. Meanwhile, AT&T Corp., Qwest Communications International Inc. and other carriers have
rolled out VOIP services, and AT&T launched Monday its first do-it-yourself offering for consumers. Nearly a third of international calls are now being made over VOIP, Eric Weiss, co-founder of ITXC Corp., a VOIP provider, said during a panel discussion at the VON show. "We're seeing quite broad adoption in VOIP especially in the international space," he said. "About a third, actually 36 percent‚ of calls are going over IP. We're seeing the tipping point where VOIP is a major force in international long distance more and more."
Rocky Mountain News: April 12, 2004-Consumers have a strong enthusiasm for alternative telephone services such as Internet-based calling, a new survey shows. The survey, conducted by Gallup for UBS investment banking research, found that 34 percent of the respondents would switch to voice-over-Internet-protocol if it means saving at least 20 percent on their phone bills. Respondents also said they were more willing to sacrifice voice quality than reliability. That suggests that consumers are willing to accept a service that is more like what they get from their cellular phone than their traditional landline.
"The survey confirms what we already knew: Customers want VoIP and we are working to bring the service to customers in all 14 Qwest states by the year's end," said Qwest spokeswoman Rebecca Tennille. But the Gallup survey shows that VoIP providers will have to focus hard on reliability, because consumers may not be patient if the service cuts out. Traditional landline phones have 99.99% reliability. The UBS analysts said that based on their own trials of Vonage, a VoIP provider, "the service does occasionally drop. That said, we find it to be a good alternative to traditional wire line service a vast majority of the time." AT&T Chairman and Chief Executive David Dorman recently told analysts that he believed that
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VoIP could turn out to be the "killer" application the telecommunications industry has been hoping for. There is a move - supported by a court decision last year - to treat VoIP as an information service, like most other Internet-related products, and exempt it from most taxes and regulations. Gallup surveyed 803 individuals from a variety of age groups and regions of the country.
Rocky Mountain News: EVERY time an important piece of our lives goes electronic, much is gained, but something is lost, too. Audiophiles say that compact discs don't sound as warm as vinyl records. Home theaters are neat, but don't offer the communal fun of a movie theater crowd. And no matter how efficient e-mail may be, it can't touch the joy of receiving a handwritten letter on fine stationery, thoughtfully composed and concluding with the words "check enclosed."
So stand back. The latest life component to make a radical, Internet-driven shift is ordinary home telephone service! This development is annoyingly called voice-over-Internet protocol, or VoIP, which means "calls that use the Internet's wiring instead of the phone company's." When you sign up, you get a little box that goes between your existing telephone and your broadband modem (that is, your cable modem or D.S.L. box, a requirement for most of these services). At that point you can make unlimited local, regional and long-distance calls anywhere in the United States for a fixed fee of $20 to $40 a month (plus the cost of your broadband Internet service, of course). Overseas calls cost about 3 cents a minute.
These figures aren't subject to inflation by a motley assortment of tacked-on fees, either; voice-over-Internet service is exempt from F.C.C. line charges, state 911 surcharges, number-portability service charges and so on.
Wanted to get a copy of this posted ASAP, because the old Telatinos site is (conveniently) gone for good. I was able to pull this out of a Google cache file. Love the stuff about the marketing plan. Real incriminating too, BECAUSE NONE OF IT EVER HAPPENED! Specifically, reference the items marked in boldface.
__________________________________________________________
Page 1
TELATINOS CORPORATION
JBC - SJO 7219
2011 NW 79th Ave.
Miami, FL 33122
USA
A TEXAS CORP
EXECUTIVE VOIP COMMUNICATION SERVICES FOR CENTRAL AND SOUTH AMERICA
TERRITORY INCLUDES
Cuba, Dominican Republic, Puerto Rico, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay, Venezuela
www.TELATINOS.com
www.TELATINOS.net
www.IPvX.US
www.IPeXtreme.US
__________________________________________________________
Page 2
THIS IS NOT AN OFFER TO SELL SECURITIES
This document contains proprietary and confidential information regarding TELATINOS INC (hereinafter, "TELATINOS," "the Company"), and is provided to potential investors for their use in evaluating whether or not to pursue an investment into the Company.
The enclosed documentation is an executive summary of the Company, its subsidiaries and its operations. It does not purport to contain all material available.
While the Company has endeavored to include all pertinent information available to date herein, the Company believes to be reliable and relevant, no representation or warranty, express or implied is made as to the accuracy or completeness of such information contained herein. Therefore the Company expressly disclaims any and all liability that may be based upon such information including errors therein or omissions thereof. Nothing contained in this document is or should be relied upon as a promise or representation as to the future.
This document should be utilized only to evaluate investment interest and the material contained within this document may not be reproduced without prior written consent of the Company.
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OVERVIEW
Telatinos Inc. (a Texas Corp) through its wholly owned subsidiary ipXes inc. (a Nevada Corp) which operates the company‚ has assets in Central and South America. We are a facilities-based, service provider of high quality Voice over IP (VoIP) solutions to businesses and executives.
Our market offering to executive residential and business customers is a communication port for local, long distance and international calls, an expanding array of the best executive phone services, all utilizing VoIP. Telatinos and its subsidiaries manufacture and purchase a range of products, seamlessly merged with state of the art suite of executive phone services that is resold through Central and South American Internet Service Providers, Telecommunication Service Providers and Cable Operators in strategic markets.
Through our software laboratory subsidiaries we provide a portfolio of IP multimedia based solutions ranging from subscriber based voice and video services, to SIP based infrastructure design and deployment, to broadband customer premise equipment design and implementation services, as well as engineering design, manufacturing and distribution of wireless broadband technology.
Through strategic partnerships and joint venture agreements in Central and South America, TELATINOS has put in place a solid foundation for immediate revenue generation and earnings growth through prudent expansion throughout the following countries:
CUBA, DOMINICAN REPUBLIC, PUERTO RICO, COSTA RICA, EL SALVADOR, GUATEMALA, HONDURAS, NICARAGUA, PANAMA, ARGENTINA, BOLIVIA, BRAZIL, CHILE, COLOMBIA, ECUADOR, PARAGUAY, PERU, URUGUAY, VENEZUELA
Customers benefit from existing point-to-point telecommunications routes and circuit switches, voice over internet protocol (VoIP) servers, and direct circuit connections, all of which currently provide international long distance services to other telecommunications.
Telatinos has developed a wide range of services, features and functionality that the large‚ "branded" carriers offer. Telatinos will offer these services and features at discounts to the competitors price with the following significant differentiators.
- we offer unlimited peer-to-peer‚ "on-network" calling, to or from anywhere in the world, 24 hours a day, seven days a week.
- Included in the flat monthly fee, any subscriber with internet access (broadband) can call another subscriber with internet access (multiple simultaneous calls or multi-party conference calls), using the same telephone and hardware that consumers are accustomed to (no headsets and microphones tied to your PC), experiencing unparalleled sound quality on our robust VoIP network without having to think or worry about long distance calling charges.
- A subscriber may assign a "frequently used" area code(s) to his account in any area code(s) that he calls most. Any called number in that area code (s) gets
charged as a local call.
__________________________________________________________
Page 4
INDUSTRY OVERVIEW
Annual revenue from global voice telecommunications now exceeds $1 trillion and is growing at a rate of 18%. This is an impressive statistic, but easily misunderstood. In reality, the global telecommunications and IT industry is in a state of upheaval. In excess of $1 trillion had been invested in network construction between 1996 and 2001, primarily to support a then-projected dramatic rise in data traffic. Although in North America and Europe we enjoy an 80% + telephone penetration rate and in most major metropolitan areas more than one phone line per person (100% + teledensity), most of the world's population still does not have access to reliable phone service, with teledensity rates of less than 10% in many emerging markets and modernizing nations.
Thanks to the overdevelopment of data capacity in almost every major city on Earth, VoIP usage is growing at a dramatic rate, and will continue unabated for many years into the 21st century. In much the same way as cell phone usage quickly leapfrogged pager subscriptions (with a poor land line infrastructure, how do you call the number on your pager?), many communities around the world are not installing new POTS lines (Plain Old Telephone System) and are simply installing last mile lines or wireless access to this overbuilt fiber optic data network. In other words, if you have an account with an ISP for internet access you don't need an account with a carrier for local and long distance, too. If you do have an account with a local and long distance carrier, go ahead and cancel it, as the ISP, with our unique service and technology, replaces the old phone company's first and last mile and they indeed become irrelevant.
While data transmission volumes have continued to rise as well, they have not done so at anywhere near the rate necessary to economically support the new fiber optic network capacity rolled out around the world, exponentially increasing data transmission volumes were the assumptions underpinning much of this historic hard network investment. Consequently, many carriers are only utilizing 5-10% of their data capacity. Global voice traffic continues to rise, but was often relegated to second-class status in the eyes of large carriers as they sought to provision data networks first and foremost. The internet boom promises of zillions of bits of data (e-commerce, downloading websites and streaming media, etc.) transmitted to every PC, laptop and handheld device in every office, home, car and backpack in the world led to the over-development of fiber optic networks to and from major hubs worldwide. Global Crossing, AT&T, MCI/WorldCom, Cable & Wireless, KDD, Deutsche Telecom and the like all competed in a stampede to be the first to wire the world, and they all won or lost, depending upon your perspective.
__________________________________________________________
Page 5
This massive over-investment in raw transmission capacity has caused a shakeout throughout the telecom industry, from manufacturers of switching and routing equipment through small CLECs (Competitive Local Exchange Carriers) and all the way to the giant global carriers. Companies that borrowed heavily to finance network construction will not survive, but companies that take advantage of cheap access to this infrastructure and market to retail consumers effectively will thrive.
Even as this drama has played itself out, two sectors of the telecommunications landscape have continued to thrive: international long distance and VoIP (Voice over the Internet Protocol). Unlike domestic (U.S.) long distance, international long distance traffic has continued to rise even as prices have, overall, remained stable. Cutthroat competition has caused per-minute prices to fall dramatically to the point where little operating margin remains in long distance transmission for all but the largest carriers who own their networks outright, and for those who can utilize these networks cost-effectively and maintain "sticky" customer relationships.
Voice over the Internet Protocol, in layman's terms, essentially allows the owner of a "softswitch" (telecom switch with specialized software suites) to receive voice (analog) signals at the switch, convert the signal to digital (data) and transport them in the form of zeroes and ones over the worldwide web either in a roundabout way like an email message or over a VPN (Virtual Private Network) directly to another softswitch anywhere in the world. The latter is slightly more expensive than pure web-based signal transmission (essentially free), but the user is guaranteed high sound quality when using a "private" line.
A VPN route, originally intended for secure emails and website downloads can transport voice signals at a small fraction of the cost charged by the major carriers for voice capacity. We market a voice telephony service that essentially behaves like a data network seamlessly and transparent to the consumer, utilizing all softswitches, data routers and IP phones, using dedicated VoIP routers and servers in order to maximize the service quality.
Other wholesale carriers have pioneered this vast expanse of the VoIP market. A good example of "pure play" VoIP carrier being ITXC (NASDAQ: ITXC) and the hybrid International Discount Telecommunications (NYSE: IDT). ITXC co-locates their softswitches in data centers and ISPs and carries their traffic exclusively over the Internet at very low cost and is beginning to market directly to the retail consumer. IDT utilizes mostly dedicated fiber but pioneered web-based service to retail market niches with Net 2 Phone. Both companies are less than ten years old and each carry over a billion minutes monthly (approximately 2% of global traffic). Their operating margins have held steady at 15% - 18% and both are EBIDTA-positive.
Other recent retail entrants into the fray are Vonage, Packet 8, Skype and FreeWorld Dialup, - which essentially re-markets to consumers the wholesale VoIP service of SBC - has accumulated over a 160,000 subscribers for their $29.95 flat rate unlimited calling plan since launch in late 2003, and Skype has processed over ten million free PC softphone downloads since January 2003.
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Leveraging of our management's relationships, knowledge of global connectivity solutions, using our unique marketing approach and pricing advantages, TELATINOS captures significant market share very quickly. Our appeal to users of its telecommunications network and services around the world has already been well received.
The telecom industry worldwide in 2003 exceeded a trillion dollars in total global revenue, yet there are substantial regional differences as a consequence of economic inequality. In most of the developing world there are fewer than ten phones per hundred people. (This is commonly referred to as "teledensity").
Rapid growth will continue to be the most notable feature of telecommunications markets around the world, and TELATINOS will provide low-cost international long distance services as these markets mature. Just as markets are maturing and teledensity rates are on the rise throughout our primary target regions, we take advantage of significant technology and regulatory breakthroughs.
Improved VoIP Quality: It started out sounding very poor, "choppy" speech, half-duplex, echo and a significant delay commonly referred to as latency. Now, with high quality hardware and software solutions, VoIP conversations are virtually indistinguishable from traditional voice calls. Since voice quality is assured, TELATINOS can focus on sales of the service.
Features Being Added: It took 125 years to bring the circuit switched phone network to its current state starting in 1876. Within 10 years of its inception, IP Telephony has surpassed the circuit switching in cost of service, features and capabilities.
Hardware Becomes More Resilient: Customers are demanding higher grade telco hardware platforms and interface devices, and the major makers have responded. TELATINOS can choose between hundreds of suppliers making it possible to deliver peripherals that are interesting and inexpensive to our distributors and customers.
The Regulators Are Paying Attention: PSTN access charges and international settlement charges are being reduced. Regulators are trying to balance universal service subsidy needs with the interest in promoting competition and in supporting the compelling commercial benefits lower-cost telecom services bring to their economies.
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ADVANTAGES
The Company has designed a standard model for IP to IP (caller-to-caller) service not just in select markets, but scalable and deployable anywhere in the world. Our integrated technical solutions and IP desktop phones and cordless handsets are state-of-the-art. We also provide suites of services such as those typically offered by traditional telephony service providers but not VoIP carriers, such as:
- Calling cards with PINs that access your account directly when not near your phone;
- Wholesale international long distance rates worldwide when calling from your IP phone to a non-IP phone;
- 800 number access to international voice or data gateways for IP products;
- Voice mail, voice mail-to-email, caller ID, number portability and teleconferencing.
Planned Deployment Schedule
BEGIN MARKETING OF IP-IP, IP-PSTN, PSTN-IP SERVICES (COSTA RICA) Feb. 2005
RECRUITING AND TRAINING OF CAUSE-RELATED AND NETWORK MARKETING DISTRIBUTOR LEADERS Mar. 2005
OPENING OF BRAZIL MARKETING OFFICE (Honolulu, HI) Q2 2005
OPENING OF CUBA TELATINOS Ltd. Q2 2005
OPENING OF PANAMA OFFICE Q3 2005
OPENING OF ARGENTINA OFFICE Q4. 2005
EXPANSION OF MARKETING EFFORT IN ALL COUNTRIES REPRESENTED
Through '05, 2006 & 2007
Sales and Marketing
Under the leadership of TELATINOS senior management, an experienced direct sales force and marketing / account management team will leverage long-term industry relationships and expertise.
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EXECUTIVE MANAGEMENT
JON MILLER
PRESIDENT & DIRECTOR OF MARKETING
- EXHIBIT B (RESUME)
EXIT STRATEGY
Although it cannot be guaranteed, we can predict with certainty that well-managed, fast growing voice over the internet telecom services providers will be Wall Street darlings in the near future. We fully intend to maximize the investment community's growing awareness of this technology, our experience in the sector, and our market timing. We can predict with certainty that, as we achieve our revenue and profitability targets, and after only capturing less than one half of one percent of the industry's market share, our company will be an attractive buy for the public, institutional investors and / or established telecom sector leaders.
VoIP and WiFi Acceptance in the Mainstream
Generally, early adopters raving about a new gadget or application are not a reliable indicator of a technology's success in the marketplace. Tech geeks' affinity for VoIP was prevalent in the late-1990s, however the mainstream public's acceptance has not noticeably shown momentum until 2003. Literally hundreds of news articles and reports have been published during the past six months regarding VoIP and WiF-enabled telephony. A common view shared in each article is that the future of communications is clearly focused on VoIP and the support sectors surrounding it. Additionally, industry experts agree that young and startup communications enterprises are more likely to benefit from this emerging trend as they are more agile and responsive to the changing times. The following are just a sampling of the findings:
Wharton Business School - University of Pennsylvania: Schoolar, an industry analyst, points out for example, that three years down the road there are likely to be some four million VOIP subscribers. That is an impressive increase over the 378,000 who are expected to sign up for VOIP in 2004, but those four million pioneers will still represent a tiny fraction of the 113 million households where the traditional phone call will still hold sway. (US market only)
Synergy Research Group: The overall revenue for WiFi wireless networking gear was up more than 55 percent in the fourth quarter or 2003 to $751.9 million, said in a report Tuesday. Revenue was up about 40 percent, to $2.5 billion, for the year.
Residential Voice-over-IP: Analysis & Forecasts, a new report from Parks Associates, interest in VoIP service is consistent among both broadband (52%) and narrowband (48%) households.
INC Magazine: There is no risk of everyone swooping out and buying VoIP phones and eliminating the plain old telephone service (POTS) overnight. However, in the next five years there is going to be some serious worry at the traditional phone companies about how they will make money. All the investment in the late '90s in Internet backbone construction (much of it by companies now in bankruptcy) is starting to look as if it might be good for something other than pornography and trading pirated music. "Big companies, which are traditionally where phones cost the most, will be the first to broadly adopt VoIP," predicts John Todd, a VoIP consultant. "Even the slightest perception that VoIP is less reliable than normal services will cause companies to hedge their bets. However, when you can pay 30% of what you're paying now, very often there is considerable interest in a new technology when the ROI turns positive in the first four months . For some companies that are voice-intensive, this can mean the difference between a humdrum year and a strong EBITDA positive, which perks up everyone's ears these days."
Business Week: In the 127 years since Alexander Graham Bell discovered a way to "talk by electricity," phone calling has changed relatively little. True, the world today is awash in advanced services such as call waiting and caller ID, and of course cell phones, but those are minuscule advances compared with the technological evolution -- in much less time -- seen in aviation, agriculture, medicine, automobiles, and most other industries that are basic to American life. This could
be the decade that phones finally make their move. Voice over Internet protocol, or VoIP, sometimes pronounced "voyp," could be the transformative technology that will redefine the phone and the way people use it. With VoIP, calls are transferred in digital packets over data networks instead of over circuit-switched copper wires. This means any corporation with a network or any individual with a $30-a-month broadband connection can make calls without paying the phone company. Moreover, once voice is on the Net, it becomes just another piece of information that can be manipulated in many more ways than traditional phone calls can -- which should lead to rapid innovation and improvement in voice communications (see BW Online, 11/11/03, "Why the Bells Should Be Very Scared").
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Wall Street Journal: Billions of dollars are at stake as SBC, AT&T and others strain to figure out the implications of the Internet for the $300 billion (voice) telecommunications industry. Because of the Internet's regulation-free status, phone calls sent as tiny electronic packets over the global computer network avoid all of the regulations, taxes and fees of the traditional public phone system. FCC Chairman Michael Powell tipped his hand on the coming rulings. In likening Internet voice applications to e-mail and instant messaging, he hinted it would be defined as an information service, free from the labyrinth of regulations and fees related to telecom services.
The Internet presents both promise and peril for traditional phone giants, which conduct their business in a heavily regulated world. A decade ago, consumers had one choice for local phone service and three major long-distance options. Now, cellular-phone providers, cable-TV companies, Internet start-ups and others are all vying for a chunk of the telecom market. And savvy consumers, tired of mounting taxes and fees on their monthly bills, are increasingly searching for cheaper alternatives.
Companies providing the type of PC-based Internet voice connections Mr. Powell recently described could quickly pick up customers by offering lower, untaxed rates. The promise already is causing "a communications revolution," says Jeff Pulver, chief
executive of Free World Dialup's parent, Pulver.com. "Within the next 10 years, it's quite possible that 50% or more of voice traffic will take place off the traditional public telephone network and run on the Internet, wireless or other systems," he says.
Telephony Online: Reported in March 2004: Imagine this: A consumer based in California could have a broadband connection with a VoIP phone service. The consumer could carry the "broadband box" when they travel and literally plug-in to the hotel's broadband connection and talk back to the U.S. without paying an extra penny. So, take your broadband phone on your next trip to Europe or Asia and you are sure to save a bundle if most of your calls are back to the U.S.
Likewise, if the consumer subscribes to a VoIP service in the U.S. and physically decides to "permanently" locate the box with their friend or business associate abroad, they are able to call back to the United States without incurring any international long distance charges. So the next time you a dial a local phone number to call your colleague, it may actually be ringing on a VoIP phone sitting in Tel Aviv, Israel. This allows any organization to have regional representatives through out the world‚ all with local U.S. numbers.
These types of services not only provide excellent toll-quality, but also bypass most international tariff agreements, saving the consumer a lot of money.
E-Week: March 30, 2004- SANTA CLARA, Calif., Voice-over-IP services have reached the "tipping point," executives said here Monday, shifting from international to domestic communications. Executives at the Voice On the Net show said that while users understand the advantage of IP calls that aren't metered by distance, cable and especially DSL providers need to offer "naked" DSL service that allows users the choice of what infrastructure they will use to make voice calls.
Although the Internet can be used to transmit data in a variety of forms, VOIP services have been the low-hanging fruit that businesses and carriers have first turned to. Bernd Kuhlin, president of Siemens ICN, said in a keynote address Monday that he refuses to use the term "VOIP," referring to "1Gip" and "2Gip" networks to indicate the first and second generations of IP services. Meanwhile, AT&T Corp., Qwest Communications International Inc. and other carriers have
rolled out VOIP services, and AT&T launched Monday its first do-it-yourself offering for consumers. Nearly a third of international calls are now being made over VOIP, Eric Weiss, co-founder of ITXC Corp., a VOIP provider, said during a panel discussion at the VON show. "We're seeing quite broad adoption in VOIP especially in the international space," he said. "About a third, actually 36 percent‚ of calls are going over IP. We're seeing the tipping point where VOIP is a major force in international long distance more and more."
Rocky Mountain News: April 12, 2004-Consumers have a strong enthusiasm for alternative telephone services such as Internet-based calling, a new survey shows. The survey, conducted by Gallup for UBS investment banking research, found that 34 percent of the respondents would switch to voice-over-Internet-protocol if it means saving at least 20 percent on their phone bills. Respondents also said they were more willing to sacrifice voice quality than reliability. That suggests that consumers are willing to accept a service that is more like what they get from their cellular phone than their traditional landline.
"The survey confirms what we already knew: Customers want VoIP and we are working to bring the service to customers in all 14 Qwest states by the year's end," said Qwest spokeswoman Rebecca Tennille. But the Gallup survey shows that VoIP providers will have to focus hard on reliability, because consumers may not be patient if the service cuts out. Traditional landline phones have 99.99% reliability. The UBS analysts said that based on their own trials of Vonage, a VoIP provider, "the service does occasionally drop. That said, we find it to be a good alternative to traditional wire line service a vast majority of the time." AT&T Chairman and Chief Executive David Dorman recently told analysts that he believed that
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VoIP could turn out to be the "killer" application the telecommunications industry has been hoping for. There is a move - supported by a court decision last year - to treat VoIP as an information service, like most other Internet-related products, and exempt it from most taxes and regulations. Gallup surveyed 803 individuals from a variety of age groups and regions of the country.
Rocky Mountain News: EVERY time an important piece of our lives goes electronic, much is gained, but something is lost, too. Audiophiles say that compact discs don't sound as warm as vinyl records. Home theaters are neat, but don't offer the communal fun of a movie theater crowd. And no matter how efficient e-mail may be, it can't touch the joy of receiving a handwritten letter on fine stationery, thoughtfully composed and concluding with the words "check enclosed."
So stand back. The latest life component to make a radical, Internet-driven shift is ordinary home telephone service! This development is annoyingly called voice-over-Internet protocol, or VoIP, which means "calls that use the Internet's wiring instead of the phone company's." When you sign up, you get a little box that goes between your existing telephone and your broadband modem (that is, your cable modem or D.S.L. box, a requirement for most of these services). At that point you can make unlimited local, regional and long-distance calls anywhere in the United States for a fixed fee of $20 to $40 a month (plus the cost of your broadband Internet service, of course). Overseas calls cost about 3 cents a minute.
These figures aren't subject to inflation by a motley assortment of tacked-on fees, either; voice-over-Internet service is exempt from F.C.C. line charges, state 911 surcharges, number-portability service charges and so on.
Good stocks are obvious. Extensive DD is how you convince yourself to buy a bad one.
>^..^<
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