Push-To-Talk Push-To-Talk in Rural Americain Rural America

Push-To-Talk Push-To-Talk in Rural Americain Rural America

Damian SazamaVice President, Sales & Marketing

Bluegrass Cellular, Inc.RCA Marketing Conference

Lake Tahoe, NevadaOct. 2-4, 2005

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

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!

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

Coverage Areas

Bluegrass Cellular PTT coverage (reflects roaming partner coverage)

Sprint/Nextel PTT coverage (limited - cannot use other voice networks)

Chart of ComparisonFeatures BlueWorks

Push-to-TalkSprint/Nextel

Direct Connect

Cellular/PTT call waiting

Yes No

Voice Latency

150ms 700ms

Quality of Service

ConsistentHandoff

Lacks Handoff

Web Group Provisioning

Free Charged

Real Time Contact Alerts

Yes No

Same Number forWireless/Walkie Talkie

Yes No

Group Calling

Free Charged

PTT Online Tool

Marketing 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)

Referral Program $35 to each PTT

customer and to new PTT referral

Competes directly with Nextel

Print Advertising

Outdoor

Newspaper

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

Major Issues

Questions?

Email: dsazama@bluegrasscellular.com