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Push-to-Talk Business Proposition for Cellcom in Wisconsin

This proposition presents a Push-to-Talk (PTT) feature for Cellcom's wireless programs, targeting small businesses in Wisconsin. It includes details on the target market, product offerings, pricing, and the challenges and opportunities in the first two years of implementation.

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Push-to-Talk Business Proposition for Cellcom in Wisconsin

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  1. Business Proposition for Push-to-Talk David J. Sinkula

  2. 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

  3. 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

  4. 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.

  5. 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

  6. 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

  7. Price • Handset • Kyocera 3250 bar phone $99.95 • Monthly Access • PTT 200 $10.00 (Additional calls $.15) • PTT Unlimited $20.00

  8. 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

  9. 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

  10. 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

  11. 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.

  12. Year Two – Projected • Grow subscriber base 200% with new users • Bring back subscribers lost to SMS and handset inadequacies • Growth will continue based upon existing Kyocera bar phones • Explore consumer proposition • Anticipate decline in PTT ARPU due to competitive pressures

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