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American Company Spotlight

 

TelePlus Enterprises Inc. Website: Click Here


Exchange: OTC:BB
 

Market Cap: 24.2 Million

Outstanding Shares: 86.4 Million

52 Week Hi / Low: $0.55 / $0.15

Price April 28, 2006$ 0.28

TLPE Recent Stock Quote and News: Click Here

Information As Of April 28th, 2006

 

'Immediately before the 2005 year-end, the Company acquired the assets of Liberty Wireless, the 3rd largest mobile virtual network operator (MVNO) on the Sprint Nationwide PCS Network, becoming one of the top ten prepaid wireless resellers in the country. Following four acquisitions in 2005, the Company's other wholly owned subsidiary, TelePlus Connect Corp., provides a variety of landline telecom solutions, including prepaid and postpaid local, long distance and internet services, as well as other integrated telecom offerings to multi-location organizations.'

Overview

TelePlus Enterprises, Inc. is a diversified North American telecommunications company with offices in Miami, Florida; Montreal, Quebec; and Barrie, Ontario. TelePlus was founded in 1999 and it has since become a leading provider of wireless and telecommunications products and services across the U.S.A. and Canada. In October 2003, TelePlus became a publicly traded Company on the OTCBB under the symbol TLPE and since then it has continued to grow organically and through strategic acquisitions.

The company's wholly-owned subsidiaries include TelePlus Wireless, Corp. which operates a virtual wireless network selling cellular network access to consumers and distributors in the United States under the “Liberty Wireless” brand and TelePlus Connect, Corp. which resells landline, long distance and Internet services in Canada under the “Telizon”, “Freedom” and “Avenue” brands.

 


Investment Highlights

  • TelePlus’ seasoned and experienced management team is familiar with all aspects of the rapidly growing and changing cellular communications business.
     
  • The prepaid US market is expected to reach US$32.1 billion by 2008 and the prepaid wireless sales are expected to represent the lion share of this market.
  • Wireless telecommunications is a global phenomenon that propelled mobile phones to become one of the fastest growing and widely owned consumer electronics products in history. During 2005, worldwide mobile phone sales totaled a record 816.6 million units, growing 21% from 2004, with North America accounting for 148.4 million
  • The Company reported record revenues of $6.78 million for the three months ended on March 31, 2006.
  • From a level of approximately $419 billion in 1997, total spending on equipment and services in the U.S. telecommunications industry more than doubled to an estimated $856.9 billion in 2005, with 8.9% growth achieved last year and 10.2% expected in 2006
  • As of December 31, 2005, the Company had a total of over 47,000 wireless and landline subscribers.
  • In April 2005, the Company acquired Freedom Phone Lines Ltd, an Ontario based Bell Canada reseller of prepaid local and long distance services with 3,300 customers in the unbanked market segment.
  • In June 2005, the Company purchased Avenue Reconnect Inc., an Ontario based reseller of prepaid local, long distance and internet services with over 2,000 residential customers.
  • In July, the Company acquired Telizon Inc, an Ontario based reseller of a wide range of landline services and an internet service provider servicing over 18,000 commercial and residential lines.
  • The number of wireless subscribers in the world will grow from 1.8 billion in 2005, pass 2 billion in 2006, and reach 2.6 billion in 2009.
     

Profile

Teleplus Enterprises, Inc., headquartered in St. Laurent, Quebec, Canada, provides wireless and landline telecommunications services across North America, targeting primarily the unbanked marketplace, one of the fastest growing segments of the telecommunications industry composed of credit-challenged customers.

Through its wholly owned subsidiary, TelePlus Wireless Corp., the Company resells flexible and cost-effective prepaid cellular network access to distributors and direct subscribers in the U.S. Immediately before the 2005 year-end, the Company acquired the assets of Liberty Wireless, the 3rd largest mobile virtual network operator (MVNO) on the Sprint Nationwide PCS Network, becoming one of the top ten prepaid wireless resellers in the country. Following four acquisitions in 2005, the Company's other wholly owned subsidiary, TelePlus Connect Corp., provides a variety of landline telecom solutions, including prepaid and postpaid local, long distance and internet services, as well as other integrated telecom offerings to multi-location organizations.

As of December 31, 2005, the Company had a total of over 47,000 wireless and landline subscribers. In January, the Company began building its sales force and opened a support office in Miami, Florida devoted to aggressive expansion of the Liberty Wireless business. Compared to the Company's fiscal 2005 revenues, which consisted of $8,092,689 revenue from continuing operations, and $11,043,352 from discontinued operations, due to a February 2006 divestiture of Teleplus Retail Services Inc., an unprofitable wholly owned subsidiary operating a chain of retail stores with wireless and portable communication devices, the Company's announced preliminary results in the first quarter exhibit substantial growth.

As a testament to its successful integration of the Liberty Wireless business, the Company reported record revenues of $6.78 million for the three months ended on March 31, 2006.


Wireless

Operating as an MVNO (see definition below), the Company offers prepaid wireless services in the U.S. and in Canada. Following its acquisition of the Liberty Wireless business from Star Number, Inc., a wholly owned subsidiary of InPhonic, Inc. (NASDAQ: INPC), on December 29, 2005, the Company concentrates on reselling services carried over the Sprint Nationwide PCS Network, which reaches more than 250 million people in more than 4,000 cities and communities in the U.S.

The Company's operations are supported by a back-office systems platform provided by Technology Services, LLC, a wholly owned subsidiary of InPhonic, Inc., pursuant to a Mobile Virtual Network Enabler (MVNE) agreement signed concurrently with the acquisition. The MVNE ensures the Company's procurement, activation, billing and customer care based on self-service web and speech recognition technology.
 

The Company's services are targeted primarily to the unbanked segment of the wireless market and marketed to consumers and distributors by the Company's growing sales force and through its websites at www.libertywireless.com and www.vivaliberty.com, which is specifically aimed at the Hispanic population. The Company's customer procurement efforts are strengthened by a lead generation agreement signed with Inphonic, Inc. in January. Pursuant to the agreement, Inphonic, Inc. agreed to refer to the Company a minimum of 25,000 potential customers per week at a price of $1 per lead, by delivering contact information for its website visitors who placed postpaid service orders with one of the major national network operators, but have not qualified under the carrier's credit requirements.

Furthermore, in January the Company opened a Miami, Florida office for wireless sales and distribution channels support. Finally, in March the Company sponsored the Intele-CardExpo, the leading world event for the prepaid industry held in Miami, and it intends to promote its products and nurture commercial relationships at similar prestigious venues.


Liberty Wireless Service Plans

The Company's flexible and cost-effective minute-based prepaid plans, which do not require credit checks, contracts or deposits and avoid surprise overage fees or early termination charges, include free long distance, free nationwide roaming, and free calling features, such as caller ID, voice mail and 3-way calling.

The Company's new series of calling packages launched in February also offers benefits traditionally associated with postpaid plans, including unlimited evening and weekend calling and day time per minute rates as low as $0.05. The customers can pay for their plans by phone and in hundreds of retail locations in the U.S. They can also manage their account through an online interface, paying for service, viewing calling history, buying add-on minutes and updating user profile. In addition to these great service plans, Liberty Wireless also offers a wide selection of mobile phones, including many top models that are free after rebate.


Telecom
 

Throughout 2005, the Company completed three acquisitions of operating telecommunication service resellers, which established the Company's position in the prepaid and postpaid landline telecom marketplace in Canada.

In April, the Company acquired Freedom Phone Lines Ltd, an Ontario based Bell Canada reseller of prepaid local and long distance services with 3,300 customers in the unbanked market segment. In June, the Company purchased Avenue Reconnect Inc., an Ontario based reseller of prepaid local, long distance and internet services with over 2,000 residential customers. And in July, the Company acquired Telizon Inc, an Ontario based reseller of a wide range of landline services and an internet service provider servicing over 18,000 commercial and residential lines.

Telizon Inc. offers a full In addition to local dialtone, long distance and toll-free numbers, Telizon offers more complex telecommunication solutions include centrex lines, unique lines and other services for multi-location institutions such as school boards, credit unions, real estate companies and a variety of municipal organizations. The Company's landline operations are supported by a state-of-the-art fully integrated resell operations technology platform, which was previously used to support the AT&T Canada resell business with 120,000 commercial lines. Highly scalable, the operating support system provides full financial and billing control, carrier billing reconciliation, customer care and provisioning.


Industry
 

From the standpoint of its recent tenth anniversary mark, the Telecommunications Act of 1996, the most comprehensive legislation since 1934 designed to deregulate the U.S. communications industry and promote competition, has certainly had dramatic impact, resulting in continual corporate restructuring driven by massive merger and acquisition activities, intensified technological innovation and rapid development of new products and services.

From a level of approximately $419 billion in 1997, total spending on equipment and services in the U.S. telecommunications industry more than doubled to an estimated $856.9 billion in 2005, with 8.9% growth achieved last year and 10.2% expected in 2006, according to a recent 2006 Telecommunications Market Review and Forecast report released by the Telecommunications Industry Association (TIA), the leading trade organization for the information and communications technology industry in the country.

Adapting to evolving demographic trends and customer preferences, the industry quite predictably embraced mobility as the key component of all communications capabilities and somewhat less expectedly advanced the significance of prepaid telephony services, especially in the wireless sector. As wireless technology steadily uprooted traditional landline telecommunication modes over the past decade, effectively neutralizing its dominance, the wireline landscape was plagued by falling subscriber base and declining service revenues, with only phone cards and prepaid dialtone emerging as relative bright spots.

Out of the total 2005 U.S. telecommunications service market of $310.8 billion landline service revenue accounted for $192.3 billion, recording its fifth consecutive year of decline, while wireless service revenue continued its uninterrupted double-digit growth from about $27 billion in 1996, reaching $118.6 billion. However, last year's 1.4% decrease in the landline network service revenues represented the smallest drop since 2000, and after further moderating its decline the market is expected to start expanding in 2008, climbing back to the 2005 level of $192.3 billion by 2009. At that time, total spending on wireless services, which grew 10.4% in 2005 and totaled $174.7 billion, is expected to reach $180.4 billion, expanding at a compounded annual growth rate of 11.1% between 2005 and 2009.
 

Wireless telecommunications is a global phenomenon that propelled mobile phones to become one of the fastest growing and widely owned consumer electronics products in history. During 2005, worldwide mobile phone sales totaled a record 816.6 million units, growing 21% from 2004, with North America accounting for 148.4 million, according to Gartner Group, Inc., one of the world's largest IT research and advisory companies. TIA forecasts that global wireless service revenues will surpass landline already in 2006 and reach $727.8 billion by 2009. At the same time, the number of wireless subscribers in the world will grow from 1.8 billion in 2005, pass 2 billion in 2006, and reach 2.6 billion in 2009. Paul Budde Communications even foresees that high growth in populous new emerging markets could yield up to 5 billion subscribers worldwide over the next 15 to 25 years.


Rising Cell Phone Demand to Fuel Market Growth
 

Mobile electronic devices have become a necessary tool for business
professionals and are becoming an increasingly large part of consumers’
everyday life. The demand for wireless services and products is growing
at a torrid pace and is expected to remain strong as a result of several
factors including:
 

  • increased awareness of the value of mobility
     
  • emergence of wireless Internet segments
     
  • introduction of compact phones and devices with longer-lasting batteries
     
  • increasing affordability of wireless usage relative to traditional landline phones
     
  • new applications of 3G technologies such as MP3 and wireless location services
     

Wireless phones are among the fastest growing consumer products in history. According to EMC, a leading researcher and publisher of intelligence about wireless markets, there are now more than 1 billion wireless phone subscribers worldwide.


What is a MVNO?

An MVNO purchases wholesale airtime on an existing wireless network and provides its own branded wireless communications services to end-users. Typically, MVNO focuses on closely targeted niche markets, defined by particular demographics such as lifestyle, age, payment methods, ethnicity, geography or membership of a specific community or interest group. By buying network and radio capacity from an existing mobile network owner – and managing this through a dedicated third-party platform capable of handling Customer Relationship Management (CRM), billing, service creation and network inter-working – the MVNO is able to build its own brand identity through innovation with new data and content-based services and through dedicated market understanding and support. MVNOs are also particularly interested in the increasing role that mobile content and applications can play in targeting these niche markets to increase both revenues and loyalty.
 


Recent News and Press Releases

• TelePlus CEO Interviewed by the Prominent Wall Street Reporter Following Record-Breaking Q1 Results
Market Wire (Thu, Apr 27)
 

• TelePlus Announces Preliminary Q1 Sales of $6.78 Million, Setting a Record-Breaking Quarter for the Company
Market Wire (Tue, Apr 25)
 

• Investology's Most Recent Report Released Outlining TelePlus as a Positive Investment Outlook With a Strong 12-Month Price Target
Market Wire (Wed, Apr 19)
 

• TelePlus Strengthens Its Wireless Team Through the Appointment of an Experienced Wireless Executive as Its New Director of Sales and Marketing
Market Wire (Tue, Apr 18)
 

• TelePlus CEO to Deliver Keynote Address at the Upcoming RedChip Small-Cap Investor Conference in Florida
Market Wire (Thu, Apr 13)
 

• TelePlus Signed on Three Municipal Government Service Agreements
Market Wire (Tue, Apr 11)
 

• TelePlus Enterprises Featured in ItsAboutFinance.com's Trader Perspective Examining the Wireless Industry
PrimeZone Media Network (Wed, Apr 5)
 

• TelePlus Sponsors the Prestigious "Official CTIA Press Reception" at the Upcoming CTIA Wireless 2006 Conference in Las Vegas
Market Wire (Mon, Apr 3)
 

• TelePlus announces 2005 Full Year Results with positive EBITDA
PR Newswire (Fri, Mar 31)


Management

Marius Silvasan, Chairman and CEO. has lead the Company since October 2003. Prior to joining it, Mr. Silvasan held the position of President & CEO for Visioneer Calling Card Inc. and Alliance TeleCard Corp. from 1995 to June 1999. Previously, he also worked as the National Sales Manager for The Home Phone Club from 1990 to 1995. Graduate of the HEC University in Montreal, Mr. Silvasan holds a B.A.C. in business administration and an MBA.
 

Kelly McLaren, President has joined the Company in November 2004. Previously in her career, Ms. McLaren worked 16 years for Pratt & Whitney Canada, Corp. a subsidiary of United Technologies Corporation, were she held various senior positions including Business Unit Director - Procurement and most recently Regional Sales Manager - Latin America. Ms. McLaren holds an MBA from Ecole des Hautes Etudes Commerciales (HEC) in Montreal were she focused on marketing and international studies.
 

Tom Davis, has served the Company's Chief Operating Officer since November 2005, following the Company's acquisition of Telizon Inc., where he held the position of President and CEO since December 2002. Previously in his career, Mr. Davis was Senior Vice President, Customer Operations at Axxent Inc., a Competitive Local Exchange Carrier (CLEC), President and COO at Cam Net Communications, President and CEO at ACC Long Distance and consulted for AT&T canada. Mr. Davis is a graduate of the Wharton School of Business, University of Pennsylvania with a Bachelor of Science in Economics.
 

Roberts Krebs has joined the Company in February 2004. Prior to joining the Company, Mr. Krebs worked nine years for GB MICRO Electronics, where he held the position of Vice President, Finance. Prior to GB MICRO, Mr. Krebs held the position of Controller for Future Electronics and Le Chateau retail stores. Mr. Krebs holds a C.A. and a Bachelor of Commerce both from McGill University. Mr. Krebs is an active member of the Canadian Institute of Chartered Accountants.


Contacts

TelePlus Enterprises, Inc.
7575 route
Transcanada suite 305
St-Laurent, QC
H4T 1V6

Telephone : (514) 344-0778
Fax : (514) 344-8675
E-Mail: Info@teleplus.ca

For investor info call: 1-866-699-3388
 


FORWARD LOOKING STATEMENTS

This report includes forward-looking statements that reflect TelePlus Enterprises, Inc. current expectations about its future results, performance, prospects and opportunities. TelePlus Enterprises, Inc. has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "we are confident" or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause TelePlus Enterprises, Inc.'s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company's growth expectations and ongoing funding requirements, and specifically, the Company's growth prospects with scalable customers, and those outlined above. Other risks include the Company's limited operating history, the Company's history of operating losses, consumers' acceptance, the Company's use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company's securities, the possible volatility of the Company's stock price, the concentration of ownership, and the potential fluctuation in the Company's operating results.


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AllPennyStocks.com feature stock reports are intended to be stock ideas, NOT recommendations. Please do your own research before investing. It is crucial that you at least look at current SEC filings and read the latest press releases. Information contained in this report was extracted from current documents filed with the SEC, the company web site and other publicly available sources deemed reliable. For more information see our disclaimer section, a link of which can be found on our web site. This document contains forward-looking statements, particularly as related to the business plans of the Company, within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created by these sections. Actual results may differ materially from the Company's expectations and estimates. This is an advertisement for TelePlus Enterprises, Inc. The purpose of this advertisement, like any advertising, is to provide coverage and awareness for the company. The information provided in this advertisement is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country.

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