EXHIBIT 99.1
Kaufman Brothers
Investor Conference
September 2006
Safe Harbor
During today's presentation we will be making both historical
and forward-looking statements in order to help you better
understand our business. These forward looking statements
include references to our plans, intentions, expectations,
beliefs, strategies and objectives. Any forward-looking
statements speak only as of today's date. In addition, these
forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ
materially from those stated or implied by the forward-looking
statements. The risks and uncertainties associated with our
business are highlighted in our filings with the SEC.
We undertake no obligation to publicly update or revise any
forward-looking statements that we may make in today's
presentation
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Company Overview
Converged Communications Solutions
Target.com
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Multi-Product, Multi-Carrier, Multi-Services Strategy
Selection of product and brand focused service combinations;
will allow TES to:
Control more retail shelf space
Offer every demographic segment of consumers a phone and
service plan that will meet their calling needs
TES plans to address the mobile user in a Muni-Wi-Fi
environment
Voice over Wi-Fi offering that will allow them to use the same
phone at home and on the road
A ‘Fixed Mobile Convergence’ offering
Allow consumers anywhere in America to use a single device and a
single phone number anywhere they have Wi-Fi or GSM coverage
Seamless and uninterrupted movement between networks
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Converged Offerings
Phones with Bundled Service
Company builds revenues from
hardware sales and shares in
service revenues.
Services today include Pay N’ Talk
prepaid long distance over
traditional phone lines and Internet
(VoIP) fixed phone line replacement
services using ATS’s Digital Clear
Phones
Hardware gross margins are
approximately 40% and service
gross margins can exceed 80%.
Broadband
Modem
Money Saving
Green LDS
Button
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How Pay N’ Talk Works
3.9 Cents/Min for Domestic Calls
Free Sample Minutes Bundled With Every Phone
Taxes included, no contracts,
no activation, monthly or
minimum call time fees
Save up to 60% or up to $300.00 per year
$11.70/month versus up to $36.00/month
Rate comparison is approximate as of June 2006.
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Select Pay N’ Talk Cordless Multi Handset Phones
DECT 6.0
Multi Handset
Big Button Phone
Coming Soon
DECT 6.0
Multi Handset
Currently in Staples
2. GHz
Multi handset
Currently in CVS
DECT 6.0
Multi handset
Telephone Answering Device
Currently in Staples
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ATS Digital Clear VOIP vs. Competition
Broadband
Modem
Competing
Phone Adapter/Router
3rd Party
Traditional Phone
Broadband
Modem
3rd Party
Router
3rd Party
Traditional Phone
Competing
ATA
Competition
Digital Clear is Simple
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Select Cordless Multi Handset Internet Phones with
Patent Pending Digital Clear Platform
DECT 6.0
Expandable up to
5 handsets/locations
Built in router and
IP Platform
Coming this Fall
DECT 6.0
Expandable up to
4 handsets/locations
Built in router and
IP Platform
Coming this Fall
2.4 GHz
Expandable up to
4 handsets/locations
Built in router and
IP Platform
Already In wide release
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SunRocket Service Offering
Signature Service for $199/year
or $16.60/month
Light User Service for $9.95/month
Savings of up to 60%
Up to $500 savings per year
No contracts
All taxes and fees included
No activation or cancellation fees
E911 and number portability
Rate comparison is approximate as of August 2006.
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User will auto-authenticate and roam seamlessly from network to network
while in ready mode and during calls
Incredible cost savings for consumer as they converge their various phone
services onto a single platform
The best network is used for any given call, taking into consideration
signal strength and cost
Pipeline: Fixed Line Mobile Convergence
VoIP + WI-FI + Cellular (GSM)
Product and service may be different than as presented as the technology is still evolving
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Marketing and Distribution
The company’s products have had
steady distribution growth:
March 2,400 stores
June 9,000 stores
August 12,000 stores
Projected fiscal year end 15,000
The retailer makes profit on the
hardware and shares in the
recurring service revenue stream.
Marketing programs will include
DRTV, Internet visibility and national
retail inserts to an approximately 90
million households each month.
30 Minute
Internet Phone
Commercial
2 minute
Pay N’ Talk
commercial
Target.com
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Market Size Metrics
Approximately 70 million home phones sold in the U.S. each year
for more than $4.5 billion
Forecast of 32.6 million VoIP subscribers over the next 3 years
and broadband penetration of 65%
Average household spends more than $79 per month ($948/year)
on fixed-line telephone services
More than 110 million residential telephone lines in the U.S. today
Approximately 200 million cellular phones currently
Statistics from Gobi International, CTIA, U.S. Department of Labor and Statistics, FCC and company analysis.
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