Econopage - Marketing & Strategy

NORTH AMERICAN
COMMUNICATIONS GROUP, INC.

THE MARKET

Vertical Markets

Field Sales/Service Information & Dispatch
Routing, Pick-UP & Delivering (Trucking)
Package Tracking & Reporting
Vending Machine Information
Personal Digital Assistants (PDA’s)
Enhanced Individual Information (News, Weather, Sports)
Mobile Legal & Medical Markets

Horizontal Markets

Text Messaging	Remote Metering & Monitoring
E-Mail	WAN Scanner & UPC Data Collection
Fax Mail	PCMCIA II Standard Interface to Mobile Computers Data Base Access
File Transfer

     A single frequency system such as the Company’s, provides a convenient platform for the migration of services which can be personalized to the end-users for private data communications. According to Motorola and other industry sources, 34 million people carry pagers and this number is expected to double within five years. Current penetration estimates for the Company’s coverage area to total approximately 2 million subscribers. However, market estimates place the potential for one-way data messaging units in this region at 6.4 million by the year 2000.

     The Company will sell paging, enhanced services, voice mail and data transmission services. Through a direct sales forces to businesses within major markets - those cities with a population over a million. Secondary distribution will occur through resellers and will also target those industries which are prepared to take advantage of their C&C functions service. The Company intends on implementing a 6 month study to determine the feasibility of its own direct sales force versus resellers.

     NACG will expand its coverage area and its product line to include two-way paging, when available. Sales efforts will focus on businesses such as "Just-in-Time" manufacturers that operate within the I-75 (Interstate Highway 75) corridor. At present, there are five Japanese auto plants situated along the major North/South expressway and other wireless (paging) services lack the coverage and/or two-way voice (cellular) services are cost prohibitive.

THE STRATEGY

NACG’s strategy is to focus on providing nominal as well as premium paging, enhanced services, voice mail and data transmission. Those services include numeric, alphanumeric and message print service, which allows subscribers to receive text messages and a variety of single frequency regional options, which allow the subscriber to be paged on the same signal throughout the service region. The target market has demographics, economic characteristics and travel patterns that NACG believes are favorable for selling its basic, enhanced and regional services. NACG has chosen to exploit such business segments as medical, construction, real estate, field sales and service personnel industries, in addition to the I-75 corridor markets.

NACG’s paging and messaging strategy includes the following elements:

Market Selection. NACG will focus primarily on markets with demographics, market size, travel patterns, competitive environment and types of business that would indicate strong potential demand and growth opportunities for NACG’s paging and enhanced messaging services. NACG feels the metropolitan area within the system parameters are the prime locations for the initial thrust of the paging and enhanced messaging system. NACG plans to grow through expansion both within existing markets and into contiguous markets, either through start-up operations or the acquisition of existing paging systems.
Enhanced and Regional Services. NACG believes that, if properly informed of the benefits, a significant number of customers will choose to purchase regional paging and enhanced services. As a result, NACG will emphasize the marketing or services such as message print and a variety of other enhanced paging and message services. These services will be priced at a premium over basic paging services and will enable NACG to maximize its ARPU and EBITDA per paging.
High Quality Service. In any of its markets, NACG will seek to position itself as the provider of premium paging and enhanced messaging services. NACG will compete on the basis of coverage area, transmission quality, system reliability and customer service, as well as price. NACG will emphasize quality customer service through its customer care program designed to 1) inform customers of available enhancements, 2) insure that customers know how to operate the pagers and are satisfied with NACG’s service and 3) obtain referrals from existing customers. This program will enable NACG to increase customer retention and reduce capital costs.
Targeted Market Service. NACG’s efforts are focused on medical, construction and real estate services, on service organizations, and on field sales and service personnel within particular industries, with a strong emphasis on the I-75 corridor. NACG believes that these market segments are most likely to subscribe to enhanced services and will design its service offerings to attract them.

NORTH AMERICAN COMMUNICATIONS GROUP, INC.
900 SOUTH U.S. HIGHWAY ONE, SUITE 106 · JUPITER, FL 33477
PHONE: (561) 748-9614 · FAX: (561) 748-8763