Prepared by Kim Boggio

BDM BUSINESS PLAN - TELCO VERTICALWORKFORCE AUTOMATION TEAM MEETING

SANTA FE, NM MAY 22-24 2006

CONTENTSCONTENTS

• OVERVIEW OF MARKETOVERVIEW OF MARKET

• MARKET SHARE ESTIMATEMARKET SHARE ESTIMATE

• MEDIA/ MDFMEDIA/ MDF

• TRADESHOWSTRADESHOWS

• LEAD GENERATIONLEAD GENERATION

• PARTNERSPARTNERS

• TOUGHBOOK AS INTEGRATED SOLUTIONTOUGHBOOK AS INTEGRATED SOLUTION

• TASKS/ STRATEGIESTASKS/ STRATEGIES

The number of mobile workers in the United States will The number of mobile workers in the United States will number 105 million in 2006number 105 million in 2006

Mobile professionals will number 24.1 million in 2006, all Mobile professionals will number 24.1 million in 2006, all

other mobile workers will total 81.9 million.other mobile workers will total 81.9 million.

Mobile Field Service workers may total 20 million in 2006Mobile Field Service workers may total 20 million in 2006

The bottom line benefits of mobility The bottom line benefits of mobility

and field force automation include:and field force automation include:

Increases in productivity and efficiency Increases in productivity and efficiency

Enhanced customer service capabilities Enhanced customer service capabilities

Optimized route management Optimized route management

Competitive edge due to the ability to close business or Competitive edge due to the ability to close business or solve problems on the spot solve problems on the spot

Improved inventory management Improved inventory management

Reduced administrative costs and errorsReduced administrative costs and errors

The fastest growing mobile applications are: The fastest growing mobile applications are: 

E-mail, Database Query E-mail, Database Query

Field Service and Sales Automation Field Service and Sales Automation

Information-Based Systems Information-Based Systems

Location-Based Systems Location-Based Systems

Messaging Transactions Messaging Transactions

Vehicle Location and Positioning Vehicle Location and Positioning

Accessing Web PortalsAccessing Web Portals

Field Service systems and Transportation & Logistics systems are the main applications used in the Panasonic Toughbook markets.

Field Service Systems include:

Installation, maintenance, service and repair

Work order changes

Outage management

Inspection automation and regulatory compliance

Transportation & Logistics systems include:

Fleet management

Route management

Direct-to-store delivery

TELECOM MARKETTELECOM MARKET

$128+ billion services market$128+ billion services market

Access to 95% of US householdsAccess to 95% of US households

Dominated by AT&T/SBC and VerizonDominated by AT&T/SBC and Verizon

Other Players: BellSouth, Sprint, QwestOther Players: BellSouth, Sprint, Qwest

VoIP – VonageVoIP – Vonage

Trends: Triple Play – VoIP, Internet, VideoTrends: Triple Play – VoIP, Internet, Video

BROADBAND MARKETBROADBAND MARKET

35 million broadband access lines35 million broadband access lines

MSO’s bundling value-added services such as high-speed MSO’s bundling value-added services such as high-speed internet access, video, VoIP, and even  Wi-Fi.internet access, video, VoIP, and even  Wi-Fi.

Competing directly with Telco’s for Triple play servicesCompeting directly with Telco’s for Triple play services

Major players: Time Warner, Adelphia, Cox, Comcast, Major players: Time Warner, Adelphia, Cox, Comcast, Cablevision – also more regional companies than Telco’s Cablevision – also more regional companies than Telco’s

WIRELESS MARKETWIRELESS MARKET

Major mergers and acquisitions since 1999 have consolidated the Major mergers and acquisitions since 1999 have consolidated the highly fractional US wireless market into five national players. In highly fractional US wireless market into five national players. In order of Market share:order of Market share:

Cingular/AT&TCingular/AT&T

Verizon achieved record sales in 2005 and could regain # 1 Verizon achieved record sales in 2005 and could regain # 1 position by the end of 2006. position by the end of 2006.

Sprint /NextelSprint /Nextel

T-Mobile T-Mobile

Alltel /Western WirelessAlltel /Western Wireless

The ‘Big 3’ control 75% of the US market, and the ‘Big 5’ over The ‘Big 3’ control 75% of the US market, and the ‘Big 5’ over 90%. 90%.

Wireless revenue in specific vertical markets: Wireless revenue in specific vertical markets: financial/insurance/real estate, transportation, professional financial/insurance/real estate, transportation, professional business industries will generate the greatest revenue business industries will generate the greatest revenue

TARGETED COMPANIES: TELECOMTARGETED COMPANIES: TELECOM

VERIZONVERIZON

AT&T/ SBCAT&T/ SBC

QWESTQWEST

SPRINTSPRINT

BELLSOUTHBELLSOUTH

VONAGEVONAGE

ALLTELALLTEL

TARGETED COMPANIES: BROADBANDTARGETED COMPANIES: BROADBAND

TIME WARNERTIME WARNER

ADELPHIAADELPHIA

COMCASTCOMCAST

COX COX

CABLEVISIONCABLEVISION

TARGETED COMPANIES: WIRELESSTARGETED COMPANIES: WIRELESS

CINGULARCINGULAR

VERIZONVERIZON

SPRINT/ NEXTELSPRINT/ NEXTEL

T-MOBILET-MOBILE

ALLTELALLTEL

COMPANY2004

EMPLOYEES

MOBILE WORKFORCE (ESTIMATE)

FIELD SERVICE EMPLOYEES (ESTIMATE)

TOUGHBOOKS DEPLOYED

ITRONIX/ OTHERS

DEPLOYED

RUGGED MARKET OVER 3 YR. PERIOD (ESTIMATE)

SPRINT 59,900 17,970 8,985 0 2,000 $62,895,000

AT&T/ SBC 162,000 48,600 24,300 24,000   $170,100,000

VERIZON 210,000 63,000 31,500 25,000   $220,500,000

QWEST 41,000 12,300 6,150 100   $43,050,000

BELLSOUTH 63,000 18,900 9,450 0 5,000 $66,150,000

ALLTEL 18,598 5,579 2,790 500   $19,527,900

CINGULAR 70,300 21,090 10,545 0   $73,815,000

COMCAST 70,400 21,120 10,560 100   $73,920,000

CABLEVISION 19,095 5,729 2,864 100   $20,049,750

COX 22,350 6,705 3,353 3,000   $23,467,500

TIME WARNER 30,000 9,000 4,500 1,000   $7,744,275

TOTAL 736,643 160,770 80,385 53,800 7,000 $781,219,425

      67% 88% 12%  

TOUGHBOOK MARKET SHARE

WHY TOUGHBOOK & MOBILITY?WHY TOUGHBOOK & MOBILITY?

• Among large mobility vendors such as Panasonic, which sells its Toughbook laptop line to Among large mobility vendors such as Panasonic, which sells its Toughbook laptop line to mobile field forces, sales have doubled between 2002 and 2005, says Mike McMahon, mobile field forces, sales have doubled between 2002 and 2005, says Mike McMahon, director of workforce automation at Panasonic Comput-er Solutions. “The number one director of workforce automation at Panasonic Comput-er Solutions. “The number one reason [for the sales boom] is the advance of mobility in the workforce management reason [for the sales boom] is the advance of mobility in the workforce management space. Five to seven years ago, ROI typically was a three-year payback process [based on space. Five to seven years ago, ROI typically was a three-year payback process [based on loaded labor rates, i.e., $55 to $95/hour for field service technicians in telecoms]. Now the loaded labor rates, i.e., $55 to $95/hour for field service technicians in telecoms]. Now the ROI payback has shrunk to three to five months because the [computer] hardware, ROI payback has shrunk to three to five months because the [computer] hardware, software and wireless technologies have become much more dependable and mission software and wireless technologies have become much more dependable and mission critical,” McMahon believes.critical,” McMahon believes.

• Field forces demonstrate a pent-up need for mobile data, according to a 2005 study by the Field forces demonstrate a pent-up need for mobile data, according to a 2005 study by the Aberdeen Group. Such applications as on-demand access to work order details and Aberdeen Group. Such applications as on-demand access to work order details and scheduling, locating and identifying spare parts and warranties, and quickly obtaining scheduling, locating and identifying spare parts and warranties, and quickly obtaining customer histories are main areas for growth. In 2004, no more than 30 percent of the customer histories are main areas for growth. In 2004, no more than 30 percent of the companies Aberdeen surveyed could provide real-time data access to their field forces in companies Aberdeen surveyed could provide real-time data access to their field forces in any individual data category, while at least half the companies indicated they required it. any individual data category, while at least half the companies indicated they required it.

- Mobile Enterprise Magazine - May 2006- Mobile Enterprise Magazine - May 2006

TELCO MARKETING BUDGETTELCO MARKETING BUDGET

           

FY '06 BudgetField Based MDF/Co-op. Based on $45M

Projected Total Co-op Available Accurals Paid to Date Pending In Cap

  450,000.00 450,000.00 0    

Received Invoices - Vendor/Name Description Invoice # Date to CAP Invoice Amount Balance

Globalcomm 2006       25,000.00 425,000

OSP 2006       12,500.00 412,500

SCTE CableTech EXPO 2006       23,000.00 389,500

TelcommNext 2006       10,000.00 379,500

KWP       3,500.00 376,000

KWP       3,500.00 372,500

KWP       3,500.00 369,000

KWP       3,500.00 365,500

Magazines- OSP       0.00 365,500

Comm. Engrg & Design       20,026.00 345,474

US Telecom Executive Qrtly       7,500.00 337,974

Cabling Installation       26,000.00 311,974

CED Magazine ROS Leaderboard       13,662.00 298,312

OSP Email Newsletter       9,000.00 302,974

US Telecomm dailyLead Newsletter       9,000.00 293,974

US Telecomm dailyLead HotTopic       9,500.00 284,474

USTelecomm video banner       9,500.00 274,974

CED Webcast       19,500.00 255,474

BSA       102,000.00 153,474

           

TOTAL       310,188.00 vs. 450,000

TRADESHOWSTRADESHOWS

Globalcomm 2006 6/4/06 - 6/6/06

OSP 2006 6/4/06 - 6/7/06

SCTE CableTech EXPO 2006 6/20/06 - 6/22/06

TelcommNext 2007 Mar-07

KWP Various

CTIA Wireless?

LEAD GENERATIONLEAD GENERATION

• BSA SALESBSA SALESWEEKLY REPORT FROM DAVID H.WEEKLY REPORT FROM DAVID H.FEEDBACK FROM ASMsFEEDBACK FROM ASMs

• TRADE SHOW ATTENDEESTRADE SHOW ATTENDEES

• TOP 100 CABLE COMPANIESTOP 100 CABLE COMPANIES

• BOB W. – CABLE CAMPAIGNBOB W. – CABLE CAMPAIGN

• DOUG R. – ROCKWELL LIST – HUNTER CAMPAIGNDOUG R. – ROCKWELL LIST – HUNTER CAMPAIGN

PARTNERSPARTNERS

TOUGHBOOK AS INDESPENSIBLE TO SOLUTIONTOUGHBOOK AS INDESPENSIBLE TO SOLUTION

• Application to Reseller to End User SolutionsApplication to Reseller to End User Solutions

• Bob Wright – Vz CF08 / Citrix/ Intel Prof. ServicesBob Wright – Vz CF08 / Citrix/ Intel Prof. Services

• Rockwell as modelRockwell as model

• GE Service power as modelGE Service power as model

Vz WIRELESS RETAILVz WIRELESS RETAIL

CF08 to CITRIX Server - Vz Wireless Retail Stores

• Toughbook• CITRIX• Intel Professional Services• New Retail Vertical?

GE Appliance – Servicepower SolutionGE Appliance – Servicepower Solution

GE customers have the ability to schedule a service call using one of three methods. Customers can schedule a call:By going to www.geappliances.com on the webBy talking directly to a call center agent

By using an automated phone system with integrated voice response (IVR) capability.

Job Booking Methods

Web

Call Center

IVR

Service Management System

Dispatcher

IVR – running late / call ahead

GPS Device

AVL tracking

Parts Lookup

MiddlewareMiddleware

Tech input screen

ServicPower

Reporting tools

Tech laptop

STRATEGIES & TASKSSTRATEGIES & TASKS

INTEL ON TARGET COMPANIESINTEL ON TARGET COMPANIES

PERFORM THE FAST TESPERFORM THE FAST TES

BASELINEBASELINE

COORDINATED SALES FOR TELECOM/ BROADBANDCOORDINATED SALES FOR TELECOM/ BROADBAND

RESELLER STARTER PACKAGESRESELLER STARTER PACKAGES

ROI TOOLSROI TOOLS

MARKETING TO FIELD EMPLOYEESMARKETING TO FIELD EMPLOYEES

SW VENDOR/ RESELLER RELATIONSHIPSSW VENDOR/ RESELLER RELATIONSHIPS

LEAD GENERATIONLEAD GENERATION

INTRODUCTORY TRIALS FOR COMPETITORS INTRODUCTORY TRIALS FOR COMPETITORS CUSTOMERSCUSTOMERS

ANALYZE COMPETITORSANALYZE COMPETITORS