- PLAN B
The FCC's rule changes in late 2011 in conjunction with technological advances have accelerated the process of phasing out existing legacy voice services adversely effecting revenue streams of local exchange carriers (LECs). In response to this, AEGIS developed PLAN B, a unique and comprehensive broadband conversion strategy.
Most LEC’s offer broadband as an ancillary service, anchored to legacy voice as the main staple. Plan B inverts the status quo, making robust broadband the main staple, offering voice along with other broadband services, as applications to customers. Under PLAN B, LECs can offer existing customers lower rates and a variety of broadband services, while vastly improving profitability on the regulated side and creating new profit centers on the deregulated side.
What makes PLAN B truly unique is it’s infusion of profit building strategies and innovative online marketing tactics laced with a proper brand identity system.
When building brand awareness, retaining existing customers and attracting new ones, image is everything. AEGIS and its strategic partners prime a LEC with an engaging brand identity and meticulously designed online marketing tactics like websites, customer dashboards, Facebook Fan pages, Google+ pages and Twitter marking initiatives. Marketing through Social Media channels is vital in successfully driving residential and business customers to a LEC’s website where prospects are converted to customers.
Despite the nearly half-dozen cost recovery mechanisms for legacy voice, all of them combined rarely ever recover cost. Under current regulatory reform efforts, that’s only going to deteriorate. Aegis has been assisting clients with these cost recovery regimes for several years and has formulated a unique method of cost recovery under Plan B that reverses declining margins. Not only can Plan B improve recovery of existing plant, but can provide greater assurance of recovery for future broadband capital outlays.
Due to outdated regulations along with technological innovations in the provision of voice in alternate ways, regulated voice carriers find themselves in positions where they can no longer compete effectively. Plan B inverts conventional approaches, with regards to basic service, enabling LECs to offer the bundled services and attractive rates residential and business customers need and have come to expect.
All negatives aside, a regulated carrier’s network is a huge comparative advantage over any competitor. Plan B starts with this assumption, even if a carrier’s broadband capacity is limited or its network elements are outdated. Plan B was designed to leverage existing comparative advantages to help carriers not only dominate their market , but move beyond it.
After monitoring the M&A activity over the past 10 years, it’s no surprise that earnings multiples on trades have plummeted. Those lower multiples simply reflect the reality of deteriorating value in traditional voice networks and service provision. Plan B is designed to reverse decreasing enterprise value, for both regulated and non-regulated activities, so that the a LEC’s financial health and value is not only preserved, but enhanced.
Image is a company’s most valuable asset. And Because regulated carriers have always had a natural monopoly in the areas they serve, emphasis on brand identity and marketing has been largely ignored or left undeveloped, leaving it dated in comparison to today’s broadband players. In today’s market, broadband providers recognize the value and the effectiveness of engaging brand identity and online marketing in efforts to retain and acquire new customers. Strategic Plan B partners offer LECs unparalleled creative solutions in brand identity, website design and development, and social media marketing.
Plan B was not developed in a vacuum. AEGIS has been working closely with it’s clients in the implementation of PLAN B with the support of it’s trusted partners, a potent team of lawyers, associations, engineers, and creative teams. Each partner was carefully selected for their specialized skill sets in their respective disciplines, making PLAN B the comprehensive and effective strategy it is.
THE 10 STEPS OF PLAN B
Scroll through the 10 steps of PLAN B using the right arrow below
- PLAN B IN ACTION
SOLUTIONS FOR UNCERTAIN TIMES
ILEC's know that regulatory uncertainty and high tariff prices have almost stymied capital and operating budget decisions in rural markets. However, AEGIS has not permitted these issues to stall the move towards a broadband future. As such, AEGIS has worked with its clients, agencies and other entities for ways to modify PLANB to accomplish the same broadband goals in ways that enable ILEC's to create new profit centers, embolden existing profit centers, all the while working towards the same objectives, while regulators grapple with broadband policy decisions for rural America.
STRATEGIC PARTNERS – NECA ZONE PRICING STUDIES
Towards that end, AEGIS and Cherokee Telephone Company met with the corporate staff of the National Exchange Carrier Association (NECA) in February 2013 to discuss solutions that would permit ILEC's to meet customer demands without suffering losses attributable to high tariffs and a lack of a national broadband fund. The end result was a cooperative effort between NECA, Cherokee and AEGIS to provide studies that would help NECA provide tariff options for ILEC's who face high broadband demands and encroaching competition in their lower cost, higher density areas. The methodology for zone pricing for tariff rates was established through studies of Cherokee's existing network. Consequently, NECA was able to duplicate the same study with several other ILEC's around the nation and plan on implementing the zone pricing option in upcoming tariff revisions. Zone pricing will permit ILEC's to identify their low cost, high dense areas and carve them out for lower broadband pricing for data only services. This will allow the ILEC to better serve all customers with better tariff options for the right mix of services, profitably offered, regardless of where they are located.
WORKING TOGETHER FOR RURAL AMERICA
AEGIS works with regulatory attorneys, CPA's, billing vendors, engineering firms and capital sources, including the USDA, to help its clients bring robust broadband to rural customers. We have helped our clients implement broadband networks, create the right bundle packages and retail pricing, provide financial projections as well as assisted in raising the capital for plant investment. Our goal is to work with your staff and your outsourced professional service providers to find the best solutions for your market, whether it is for purely regulated areas, competitive areas or a combination of both. AEGIS also believes its clients' recommendations speak louder than any marketing efforts. Contact us today and we will be more than happy to send you a list of references for our work.
- PLAN B IN ACTION