Transcript Our Power Point Presentation

Opening Graphic
AAA Logo at top with line to AUS
logo and partner logo’s around
AUS in a half shell
NOTE ALL TEXT IN TAHOMA
Second Graphic
Partner logo’s meld into AUS logo
and then with AAA logo
Caption says
“The Trip Begins”
This Trip Tik
was created just for AAA
Access US
• Founded in 1995 by Rob Semaan and Vic
Mattison
• Reached sales of $1 Million by 10th Quarter
• 1999 - $340k/month in revenues, 35
employees
• 2000 - $950,000 monthly revenues with 90
employees
• Cash Flow positive and profitable
Access US
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Largest St.Louis-based ISP
Owners of 80 POP’s in IL/MO
9th Fastest Growing Company in St. Louis
Sprint Fast Fifty Award Winner
Acquired 11 Web Developers and ISP’s to date
Largest AT&T Partner in Missouri
ECommerce & Microsoft Solutions Provider thru
Habanero
AT&T
Choosing the right partner:
• Data – 52% Frame Relay Market Share
• Internet Protocol – More Pop’s than any other
• Wireless – Largest in North America
• Broadband (Cable) – Largest in the U.S
• Dominating Brand Recognition
AT&T
Availability
• Unsurpassed Coverage: 1800+ owned POP’s nationally
Scalability
• Designed to Scale Rapidly as Demand Increases
Flexibility
• Ease of New Technology Integration
Quality
• Industry Leading Network Performance
MultiSoft
• Provides transparent, high quality, 24x7 ondemand technical and product support
services
• 5 years of experience in providing private
labeled Help Desk services to the Internet
customer
• Supports over 40 different companies
• Capacity to handle as many as 275,000
additional subscribers without requiring
significant additional capital investment
Product Highlights
Access US offers
• The products AAA desires,
• The reliability it must have,
• The coverage it seeks,
• The scalability it needs, and
• The price it wants
Dial-up Service
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Complete Coverage (Over 760 local POP’s)
Easy Sign-up Processes (CD-Rom,
Download)
Customer Service (24 x 7)
Technical Support (24 x 7)
Billing (auto debit, check, auto Credit Card
debit, Credit Card)
DSL Service
• Coverage (over 300 CO’s lit currently)
• Qualification (Quick turnaround from web site
or phone call)
• Implementation (process takes between 6-8
weeks)
• Support (3 layers of support 24 x 7)
• Billing (based upon line qualification and
speed, monthly check debit, monthly invoice or
Credit Card debit)
ISDN Service
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Coverage (over 380 POP’s available)
Sign-up Processes (Same as dial)
Implementation (can be completed in 2
business days)
Support (3 layers of support 24 x 7)
Billing (based upon speed, monthly check
debit, monthly invoice or Credit Card debit)
Cable Service
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Currently being tested in select US
markets
AUS will have access to cable via AT&T
when reseller agreement possible
Should be available in 6-8 months
Portal Page
The Habañero-built OURAAA.com Portal page
will include:
• Local and national news feeds
• Local and national Weather feeds
• Sports and Financial news feeds
• AAA Product Offerings
• AAA Announcements
• Chat and Bulletin Board Functions
• Direct Link to Support Services
Portal Preview
AAA Revenue Streams
From Dial-Up Service: (Monthly)
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1% penetration @ $2.00/month - $50,000
2% penetration @$2.25/month - $112,500
5% penetration @ $2.75/month - $343,750
10% penetration @ $3.00/month - $750,000
15% penetration @ $3.25/month - $1,218,750
20% penetration @ $3.50/month - $1,750,000
Based Upon AAA selling service at $17.95
AAA Revenue Streams
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From ISDN Service (Monthly)
Assuming average $40/month billing with 5%
commission to AAA:
.01% penetration - $10,000
.05% penetration - $50,000
.10% penetration - $100,000
.25% penetration - $250,000
1% penetration - $1,000,000
From DSL Service
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Assuming average $55/month billing –
5% commission/month
.5% penetration - $62,500
1% penetration - $125,000
2.5% penetration - $312,500
5% penetration - $625,000
10% penetration - $1,250,000
From Computers
Based upon agreement between AAA and
WWTAAA receives 10% of gross sale – Prices are:
• Under 100 units ($1059.99) - $105.99 per
• 101-999 units ($979.99) - $97.99 per
• Over 1000 units ($899.99) - $89.99 per
From Books
Pearson would sell books to AAA at
48% discount, AAA sells at retail:
• A $19.99 sold book by AAA creates
$9.65 commission
• A $29.99 sold book by AAA creates
$14.40 commission to AAA
• A $39.99 sold book by AAA creates
$19.20 commission to AAA
How does AAA work with all
these Vendors?
Access US works with the Internet
Providers:
AT&T, SBC, Prodigy, New Edge, IP, Genuity,
Covad, and several others that we can bring
to the table to increase coverage
AAA works with the revenue partners –
Access US, Pearson & WWT
Our Solution Outline
Our Implementation Plan
Step 1: Network Integration – All networks will
aggregate at the AUS Data Center at 900
Walnut in St. Louis. Dial-up and ISDN traffic
from AUS, AT&T and SBC/ Prodigy go thru
the AUS Radius Servers for verification
Step 2: MultiSoft is tied into the AUS billing
system and all of its network reporting tools
for technical assistance
Our Implementation Plan
Step 3: AUS and its DSL partners create DSL
package for AAA
Step 4: The Portal Page will be created; several
planning and strategy meetings between
Habanero and AAA
Step 5: Assist AAA in creation of marketing
materials and collateral
Step 6: AAA meets with Pearson and WWT and
creates reseller agreements with them
Our Implementation Plan
Step 7: Sign-up CD’s will be generated with the
proper content, pressed, and labeled for AAA
to distribute
Step 8: Testing of network, billing, portal page,
CD sign-up, DSL rollout
Step 9: Test market product in AAA selected
cities for 30-45 days
Our Implementation Plan
Step 10: Review test results and refine plans if
needed
Step 11: Launch full scale with direct mail,
radio, TV, telemarketing, etc
Step 12: Accept existing AAA members and new
AAA members into program
Step 13: Send AAA its referral fees
How does AAA receive
compensation from this
offering?
See Previous Slides
What is your expected AAA
penetration at these prices?
• On Dial-up, we believe (with proper
marketing) 10-15% will elect to use the AAA
branded service within the first year, 25-30%
penetration by month 36
• On DSL, we believe (with proper marketing)
1-3% penetration is foreseeable in the first
year, with 5-10% penetration by the 36th
month
• ISDN will see little penetration with chance of
1-2% by 3rd year with possible erosion as
DSL becomes more readily available
What about DSL and ISDN
availability?
• See POP list
• With DSL, we have brought in several
partners to make available the most “lit”
Central Offices possible. With DLEC’s
Covad, Genuity, and NorthPoint, ILEC SBC
and LEC AT&T, Access US brings Tier 1Tier 6 coverage for much of the
requested states
How can you address cable, as
you do not offer this option?
As previously mentioned:
• Currently being tested in select US
markets
• AUS will have access to cable via AT&T
when reseller agreement possible
• Should be available in 6-8 months
Does the limit of 150 hours per
month apply to each individual
or on the average of all AAA
subscribers?
The average of all AAA subscribers
What about the cost per hour
over 150 hours?
Access US will charge $.99 per hour after
the first 150 hours
Will the price of filtering drop
after 20,000 subscribers?
Access US will drop the price by $.50
after 20,000 subscribers elect filtered
service
Access US and its partners offer
the following amount of POP’s
Arkansas 28, Illinois 318, Indiana 45,
Kansas 23, Louisiana 28, Mississippi 18,
Missouri 42, New York 169, Texas 99
What % of current customers
request filtering?
Network filtering is just now fully entering
the market place and therefore, many
customers do not even know it is available
to them. A strong marketing program will
educate the consumer. Until then, we have
no empirical data but we will make it
available to AAA as the results are received.
Are reports available to
review?
We have available several reports:
1. ISP rankings as to service levels provided
2. Customer service & Tech support
satisfaction reports
3. Marketing reports from the Yankee Group
as to Internet Access penetration
4. Research reports on all Access US
partners
With a 3-year contract, will there
be a guarantee to drop ISP prices
if the Industry drops prices?
We priced this proposal to begin recouping
our costs in the 2nd year and 3rd year. We
cannot make any guarantee unless our
costs of providing such service go down
dramatically or penetration wildly exceeds
expectations
Questions?
Access US:
Rob Semaan, Eric Finch, Dion Cini
AT&T:
Brandon Phillips
MultiSoft:
Brett Johnson
Concluding Remarks
Access US brings to AAA the type of Internet
Services program that will:
– Increase revenue streams
– Increase product knowledge
– Increase brand recognition
– Increase member benefits
– Increase AAA employee morale & productivity
– Increase the value of AAA clubs