Title: Rocket Wireless
1Rocket Wireless
Building a cellular resale program to enhance
revenue Carole Sedlock carole.sedlock_at_utoledo.edu
2A brief history
- Started in 1994 with long-distance resale
- We purchased a call accounting system
- LD resale decline due to cellular service
- Debt service depended on our revenue
- Al Comley says if you cant beat them join them
3Is this easy money?
Easy is a relative term because you should be
ready to commit resources and labor to have a
successful program.
4Easy money? How much?
- Net profit for fiscal year 2003 through fiscal
year 2006 was just over 570,000 - FY 2006 revenue was flat due to vendor changes
and missed orientation sessions. - This year we anticipate net revenue of 250,000
with anticipated growth of 12 14.
5Easy money? How does it work?
- Sprint has an agreement with MiCTA with 24
discounts - Verizon has a GSA federal supply contract with
19 discounts
6Sprint versus Verizon
- Sprint has 2-year contracts, 150
service/equipment credits, 150 cancel fees,
family plans, attractive discount structure. - Verizon has no contracts, no cancel fees,
unbeatable phone prices, NO family plans,
discounts only on the voice or data plan.
7Sprint and MiCTA
- Corporate Liable customers are eligible for 24
off every recurring charge. This includes plans,
add-a-phones and all optional features.
8Sprint and MiCTA
My idea was to purchase family plans with the 24
discount and create individual plans under 35
for our customers. Family plans are uniquely
suited to provide you flexibility in plan
management. Think of them as little buckets of
minutes with small recurring monthly charges.
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11Rocket Wireless Sprint
- Plan management and flexibility in changes
- Over minute costs and revenues
- True family plans
- Large individual plans over 1,000 minutes
- Planning ahead for changes down the road
12Verizon GSA 19 Discount
Verizon only contracted for individual voice and
data plans with the federal government. My scheme
was to purchase all plans with the sharing minute
feature with the lowest minutes available. We
offset any over minute usage with several high
minute plans.
13Verizon Individual Plans
- In July 2006 we had 651 lines that used 181,041
minutes. - All 651 lines are purchased on 200 minute shared
plans. (200 x 651 130,200 minutes) - Over minutes 50,841 or 17 3,000 minute plans at
125.54 or 2,134.18 - Total cost 20,583 Total billed 27,590
14Rocket Wireless Verizon
- Requires close monitoring of monthly usage
- We enforce 1-year contracts with our customers
with 100 cancel fees - Our Verizon over minutes at 0.30 each
- There is no discount for popular optional
features - True family plans are coming 10 discount ?
15Other Revenue Streams
- Phone equipment
- Processing fees
- Downloads
- Casual web access
- Texts, Pics and Flixs
16The Back Office Tasks
Yes the revenue is appealing but you have to bill
your customers, you have to collect from your
customers, you must place orders and make changes
for them. And last but certainly not least there
are the payments to the vendors and the audit
process for billing errors.
17Sprint and Verizon Electronic Billing Websites
- Excellent source for summary detail and number
specific detail - Summary reports available in various formats
- Useful tool to complete monthly audit for
billing errors. - Need additional usage reports from Verizon
- Usage details are combined and formatted for
import.
18Pinnacle and Cellular Billing
- Subscriber information is exported from Pinnacle
into Excel - Usage information is joined with the subscriber
information in Excel - Over minute usage is calculated based on the
plan type - Final product is imported into Pinnacle
19Pinnacle Customer Invoices
- Customers see number of minutes for each
category plus all other usage amounts. - Actual call detail is available upon request.
- Administrative users can pull invoice amounts
from e-print and the amounts are exported into
the general ledger by account and subcode.
20Pinnacle Customer Invoices
- All other customer receive paper bills we plan
to move to electronic bills in 2007. - Student invoices are posted directly to their
SIS account and payments are made with the
cashiers. - Employee invoices are payroll deducted.
- Alumni/Retirees invoices are automatically
deducted from a credit card.
21Placing Orders
- Work closely with your vendor to develop
ordering routines for new activations, porting
numbers, and numbers you assume the liability of
the consumer contract. - Make them commit to delivery times that are
reasonable. - Create a system to follow up or investigate
orders that have not been filled.
22Plan Changes
- No worries with Verizon unless we sell a flat
plan for 15 - Sprint family plans require careful maintenance.
- Keep the Sprint plans full to maximize revenue
23Auditing the Vendor Bills
- Look for incorrect plan charges
- Look for incorrect over minute charges
- Look for incorrect roaming and LD costs
- Premium services should be billed at the
subscriber level - Watch for taxes that are not applicable
24More Auditing Tips
- Watch termination fees
- Watch for service credits on equipment
- No charge to suspend and restore
- Audit your accounts to make sure that the number
of optional features you are charged matches the
number assigned to your customers
25Vendor Payments
Save yourself time and headaches! Set them up on
automatic payments with your institutions
purchase card. I use two, one for Sprint and one
for Verizon.
26Front Office Sign-up
- Create the forms to sign up your customers
- Use the terms and conditions from a vendor
service order once legal approves it - Check IDs and Credit Cards
- Use a web site and shopping cart
- Offer new service offer to port their numbers
offer AOLs and offer cross market accounts
27Front Office Customer Service We Do It All
- Educate your customers to contact you and not
the vendor. Your vendor should refer your
customers to your staff - Educate your customers on how to check their
minutes to avoid ugly over minute charges. Happy
customers are lifetime customers.
28Front Office Customer Service We Do It All
- We answer billing questions
- We provide service issue solutions
- We process insurance and warranty issues
- We provide call detail explain premiums
- We have spare parts and sell accessories
- We transfer contacts download pictures
- We process plan and feature changes
- We collect and suspend when past due
29Front Office Customer Service We Do It All
- Know your phones
- Know your plans and features
- Know your customers
- Be creative
- Be sensible
30What makes us unique?
- No credit checks
- No deposits
- No sales taxes
- Plans under 30 a month
- Popular features and low cost over minutes
- Excellent customer service and flexibility
31Will your vendor(s) be there for you?
- You need sales support for orders, deliveries
and notification of changes in inventory, plans,
pricing and new services - You need assigned CSR for daily business
- You need technical support
- You need marketing support
- You need billing and AR support
32How will you market and grow?
- Build a web site and a shopping cart
- Participate in orientation how many new
freshman come to your campus each year? - Have brochures for fall move-in, RA training,
parents day, etc. - Offer monthly specials in the student planner
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