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Push-To-Talk in Rural America

Push-To-Talk in Rural America. Damian Sazama Vice President, Sales & Marketing Bluegrass Cellular, Inc. RCA Marketing Conference Lake Tahoe, Nevada Oct. 2-4, 2005. Who is Bluegrass Cellular?. Started in 1991 by five Local Exchange Companies Serves approximately 1.4 million pops

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Push-To-Talk in Rural America

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  1. Push-To-Talk in Rural America Damian Sazama Vice President, Sales & Marketing Bluegrass Cellular, Inc. RCA Marketing Conference Lake Tahoe, Nevada Oct. 2-4, 2005

  2. Who is Bluegrass Cellular? • Started in 1991 by five Local Exchange Companies • Serves approximately 1.4 million pops • Operates a TDMA and CDMA 1X network • Began offering PTT in November 2004

  3. Why the need for PTT? • Began seeing some churn due to Nextel • Studies show that 60% of U.S. subscribers are interested in PTT (source: InStat Group 2005) • We felt that with our network coverage compared to Nextel’s, our PTT service would be superior. • Always want to add services that increase ARPU!

  4. Why we chose Kodiak • Could use current technology (CDMA 1X) and current network • Could use current roaming agreements to offer a nationwide service with Kodiak’s roaming gateway • Better voice quality and without the latency issues that IP-based PTT services face • Best Feature set in the marketplace • Same number for PTT and wireless • Real-time contact availability • Toggle between PTT and wireless calls • Free group calling and online contact management tool

  5. Coverage Areas Sprint/Nextel PTT coverage (limited - cannot use other voice networks) Bluegrass Cellular PTT coverage (reflects roaming partner coverage)

  6. Chart of Comparison

  7. PTT Online Tool

  8. Market to Retail, with focus on families and BTB. BTB is strongest segment, particularly when attracting Nextel customers Price: $15 per month, unlimited PTT calling nationwide $19 per month, standalone PTT (no cellular) Marketing

  9. $35 to each PTT customer and to new PTT referral Competes directly with Nextel Referral Program

  10. Outdoor Newspaper Print Advertising

  11. How is it going? • Service is working fantastic; we can compare it with Nextel service in front of customers and there is no difference • Currently have approximately 2k subscribers • Low churn with PTT subscribers

  12. Major Issues Phone Availability

  13. Questions?Email: dsazama@bluegrasscellular.com

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