Elevate Certifiable Geniuses | Business Plan

© 2013 Elevate, Inc. All Rights Reserved

1

Executive Summary

Elevate provides cloud-based broadband, voice, entertainment, mobile,
and monitored security services for residential and business consumers
through a proprietary direct service business model.
Since our inception, we have built our brand around one simple concept; providing cloud based digital
subscription services to residential and business consumers through a vast network of independent
distributors. Our proprietary distribution model leverages a highly trained, independent workforce
motivated to acquire new customers to earn commissions and personally deliver astonishing long-term
customer experiences to earn an ongoing residual commission. This network of entrepreneurial-minded
people are trained to develop and maintain one-to-one, long-term, personal relationships with each
customer. We call them The Elevate Certifiable Genius. A Certifiable Genius becomes the go-to-guy for all
things technology. Each customer relationship begins with a personalized, in-home meeting. An Elevate
architect, working with an Elevate Certifiable Genius, designs the perfect solution to meet budget
requirements and digital lifestyle needs using a proprietary diagnostic tool we call The Drawing Board. We
save our customers up to 35% off their current monthly spend. We are able to deliver higher levels of service
at reduced rates in part because of substantially lower customer acquisition costs and low overhead.
At Elevate we offer a career opportunity in direct sales and service for highly motivated individuals who care
about people first. Entering a career with Elevate requires drive, passion for service and technology, and
personal integrity. We provide the tools for affiliates to succeed. Advanced training and certifications and
continuing education programs combined with the latest technology and unmatched support make it
possible for an Elevate Certifiable Genius to build and maintain a profitable book of business. We are the
first in the industry to enable a highly-motivated individual to build a successful business with a clearly
defined exit strategy without the high cost of a start-up, franchise or dealership.

Our Core Business
Customer experience combined with reliable technology is our core business.
Technology continues to evolve while the customer experiences with technology has retreated. Today
consumers depend more and more on reliable network connections and a broad range of applications to
save money,andsimplify and manage their lives. Demand for broadband services is expected to triple every
year for the next twenty years. Smart devices and applications are being developed to simplify life, reduce
energy waste,optimize consumption, provide broad entertainment choices and increase security. Elevate
provides a smart alternative to major service providers. We offer affordable solutions and simpledevices
encompassed, for the first time, by a direct one-to-one relationship with a qualified expert.
For decades the evolution of technology has been the key business driver for major network service
providers. They have continued to escalate investments in technology and infrastructure while dramatically
cutting budgets for customer care. The result is a gap between the subscriber and provider, leaving the
consumer frustrated and willing to abandon the relationship. Elevate is filling this void by putting local,
highly-trained people on the frontline. Our distributors are motivated to deliver a great customer experience
by the industry’s only recurring commission plan. We are exploiting our competitor’s oversight of the
customer experience by simply building a personal relationship with each subscriber.
Cutting costs, through outsourcing the most critical component for customer retention, has been the mantra
for more than two decades in the digital services industry. Elevate is reversing the trend. Our position is
building loyalty versus locking customers into onerous contracts and hidden services fees. This is our
strategy for winning the hearts and minds of the consumer.
Elevate is pioneering a new standard founded upon one simple idea: make every subscriber count.
We leverage best-in-class network services through strategic partnerships with the world’s leading network
infrastructure companies. We operate a 100% cloud-based provisioning system enabling us to connect our

2

customers to the fastest networks, most reliable IP and mobile communication platforms, and the most
advanced emergency response monitoring centers.
We have designed and built a proprietary platform enabling us to create and manage mutually profitable,
high-touch customer relationships. Our direct service business model results in the highest customer
retention rates and the lowest customer acquisition costs in the industry. While our competitors invest in
getting the consumers attention, we invest in paying attention to the consumer. The average customer
acquisition cost is in excess of $1500 per subscriber. At Elevate our average is less than $700. Our
manufacturing partners have discovered methods to save as well. Our equipment delivers reliable
connections and long-term performance at dramatically lower costs. Our competitors are forced to subsidize
equipment costs to cover high manufacturing costs, sales commissions, and advertising spend. At Elevate we
invest these dollars directly in our distributors and customers. The result is a happy customer and a team of
motivated individuals committed to keep them that way.
At Elevate, our people powered network enables us to be nimble enough to respond to market demands
and frugal enough to deliver a low cost alternative and the industry’s only high-touch experience.

Our History
We started out serving young, ethnically diverse customers in households making less than $50,000 a year.
We were among the first to offer a diverse portfolio of products and services that were attainable across the
socioeconomic spectrum. Recently, we’ve expanded our focus to include value-conscious customers at all
income levels as well as medium to small businesses. As we’ve grown, our team has expanded as well while
maintaining aa common respect for each other, and a passion for the individual consumers we serve.
Today Elevate is a nationwide, carrier-class provider with an expanding footprint, covering nearly 60 million
households and millions of businesses across the United States. We are expanding in 2016 with a planned
roll out of services in Europe and the South Pacific.
With a diverse product portfolio and expanding international distribution, we are transforming our business,
brand, operations and culture to offer customers value innovation like never before. We are leveraging our
industry-leading cost structure to introduce lower-priced, higher-value service plans. We are pioneering
affordable mobile broadband access with unlimited, all-inclusive service plans. We offer pricing flexibility
that allows customers to pick and choose products and services tailored to their budgets and digital lifestyle
requirements. Today we are working to connect subscribers to a robust hybrid 3G and 4G network that
covers nearly 95 million potential customers, and we supplement that network with roaming agreements
that provide high-quality coverage for nearly 95% of the U.S. population. Our best-in-class security,
surveillance and automation suite offers affordable, reliable and flexible solutions.
Elevate was founded in 2008 by Wright W. Thurston as a privately held company. During the first three years
the company was focused on product development and building sustainable long-term partnerships with
infrastructure and equipment providers. We perfected and fine-tuned our direct service business model and
developed our nationwide recruiting and training programs. We completed the design and development of
a unified training and certification process for our independent Certifiable Genius network. This process
includes a comprehensive continuing education program designed to keep our people on the leading edge
of evolutionary technology. We designed and deployed an enterprise resource management platform that
includes real-time subscriber provisioning and billing, as well as vast integration projects with each of our
strategic partners. We developed a nationwide logistics and scheduling system enabling us to keep our
industry leading commitment to same day installations.
During the early years we appointed Benjamin Ward Chief Sales Officer to head business development and
sales. Mr. Ward was joined by Jordan Folsom as Vice President of the Certifiable Genius Network. Together
they have deployed field sales operations in five strategic markets including Miami, Orlando, Phoenix, Los
Angeles and San Diego.


3

In March 2011 webegan the acquisition process of Zipadi Technologies, LLC., a multi-tenant, cloud-based
application development framework and software-as-a-service platform to enhance our business-to-business
product offering. In March of 2011 we completed a reverse triangular merger with Highland Business
Services, Inc., making us a small cap publicly traded company on the OTC under the symbol HGLB.
In August 2011 we expanded our leadership team appointing Kathy Roberts (CEO of Sante Fe Trust and
former head of Discover Bank) to our Board of Directors. We created an Advisory Board adding industry
experts Peter Ford (Orange Telecom, Light Squared), Peter Cannistra (Sprint, Clearwire), Donald Sutherland
(Cold Stone Creamery, Divine Nature), and John Norton (Rent.com, Norton Enterprises) to provide our
management team with clear objectives, technology insight and to assist in the development of deeper
relationships with strategic partners.
In October 2011 the company held it’s annual shareholders meeting with a unanimous vote to install the
Board of Directors and a vote of confidence in the current management team. A motion to change the
name of the company to Elevate, Inc. and make an application to change the company’s trading symbol to
ELEV was passed and ratified.
We believe our current trajectory predicts meeting the qualitative requirements to make application for
listing on the American Stock Exchange or NASDAQ early in 2015. We are in the process of evaluating our
options and we estimate making application in the first or second quarter of 2015. In October of 2011 our
application for name change was finalized, making our trading symbol ELEV.OB.
Elevate made a strategic decision in 2011 to operate as a public company in order to accelerate growth,
maintain capital efficiency and develop a vehicle for monetizing assets and deliver bottom-line results and
shareholder value. Our financial strategy includes a comprehensive asset management model backed-up by
a sustainability plan allowing us to create and manage cash flow by monetizing assets through existing
secondary markets.
Elevate currently operates three independent business units and five wholly-owned subsidiaries.
Our steadfast commitment to cost leadership and to mutually profitable, one-to-one relationships has
driven our growth as a company, and it continues to motivate us at every level of our organization. Elevate
employees and independent representatives work the way our customers live. We scrimp and save, so they
can enjoy the best value on our products and services. We fine-tune our networks, so that they can enjoy
unmatched services at industry-leading prices. We optimize every piece of hardware to maximize network
performance and minimize capital expense – so that our customers can enjoy more value.
When it comes to thinking big, no detail is too small – like sending bills by email to save paper. At Elevate
we seek innovative thought leadership at every level to ensure the very best customer experience, we have
developed a number of firsts such as our offer to pay customers by the hour for time spent on any customer
support call lasting more than five minutes or our unprecedented customer rewards program that pays to
tell to your neighbor about your Elevate experience. We expect our customers to expect more.
Elevate is about finding new ways to offer people higher value, lower cost and meeting every single need
by getting to know our subscribers personally and anticipating what they are going to want and need
tomorrow.


4

Our Business
Elevate is bringing it all together for our customers, from revolutionary smart devices to next-generation
entertainment services and sophisticated solutions medium and small businesses. Our diverse product
portfolio includes fixed and mobile voice and broadband, security and automation together with a
collection of software applications which are designed to maximize network services, save money and
simply life.
Since our inception, we have consistently provided innovative, reliable, high-quality products and services
bundled with a unique one-to-one personal relationship with every customer. Today, our mission is to help
our customers get more for less by enhancing their digital lifestyle, everywhere they live and work, and do it
better than anyone else. We’re fulfilling this vision by creating new solutions for consumers and businesses
and by developing a network of highly-trained, motivated professionals who care about every customer
experience.
Elevate is emerging as one of the leading providers of cloud-based digital services. We connect our
customers to the nation’s fastest broadband networks equal to that of any U.S. carrier. Our digital services
network covers nearly 90% of the households in the U.S.
And we’re making huge advances in the entertainment and communications industry. For example, we’ve
expanded our entertainment offerings to include television services such as Dish Network and DirecTV. It’s
part of our core strategy to deliver the most popular subscriber services where people rely on them most —
the mobile device, the computer and the television.
As we continue to break new ground and deliver new solutions, we’re focused on delivering the high-quality
customer service that is our heritage.

Key Facts
We are the first company to offer a complete integrated solution which offers voice, video, data, security
and automation from a single provider.
Elevate is pioneering same-day installations and account activations. We developed a proprietary logistics
and field management system which enables us to deliver on this promise 90% of the time.
Elevate operates a carrier-class Voice Over Internet Protocol (VoIP) switch offering fixed voice service
anywhere a broadband connection is available.
Elevate operates a virtual network and cloud-based provisioning and billing platform which is fully
integrated with strategic partners enabling us to activate and bill customers efficiently and at a lower cost.
We are the first to offer a one-to-one, long-term relationship with a dedicated expert at no additional cost.
The first to offer a subscription based unlimited on-demand and on site technical service plan.
Through strategic partnerships we are able to offer connections to the world’s most advanced and powerful
global backbone networks, carrying 23.7 petabytes of data traffic on an average business day to nearly
every continent and country, with up to 99.999 percent reliability.
We offer nationwide IP-based communications services for residential consumers and businesses, with an
extensive portfolio of Virtual Private Network (VPN), Voice over IP (VoIP) and other offerings—all backed by
innovative security and customer support capabilities.


5

Our Subscription Services
Elevate owns and operates a cloud-based delivery and provisioning platform enabling us to deliver the
fastest and most reliable digital services throughout North America. Through interconnect and wholesale
agreements with global, national and regional carriers, Elevate is able to provision, manage, bill and deliver
broadband Internet and VoIP services to residential subscribers and small business in major US markets with
growing coverage in rural and smaller metro areas. Elevate operates a nationwide subscription-based
monitored security and surveillance service throughout North America. Elevate is also an authorized reseller
for the nation’s leading satellite entertainment companies. We offer subscription services for satellite TV
and Radio.

Elevate Digital Services
Elevate Broadband
Elevate provides high speed Internet access over cable, DSL, Fiber or terrestrial wireless 4G networks
through interconnect agreements with national carriers. By establishing partnerships with multiple carriers,
Elevate is able to provide overlapping coverage, or coverage through multiple technologies in any given
area. Elevate Broadband Internet access is available at many different bandwidth levels and pricing to
accommodate a wide residential and commercial market.
Elevate Digital Voice
Elevate digital voice is available in residential and commercial packages with both national and international
rate plans. Elevate commercial digital voice is separately branded as Foxee Phone, as is packaged with
business class communications and customer management software, including CRM and CMS software and
eMarketing applications.
Elevate Mobile
Elevate leverages leading cellular network providers’ existing infrastructure to provide all inclusive,
unlimited data and voice plans to its customers. Elevate’s mobile partner provides technical support.
Elevate Security
Elevate sells and services state-of-the-art home and business security alarm hardware, and provides 24 hour
home protection through centralized national monitoring centers. Elevate Security systems utilize premium
two-way cellular connection technology and integrated alarm panels as standard equipment.


6

Elevate Energy
Elevate Control systems integrate with Elevate Security systems for maximum efficiency and limited
installation cost. Elevate Energy systems monitor and regulate energy consumption by controlling air
temperature, lighting, water temperature and other environmental factors. Elevate Energy also monitors
and regulates access to audio/visual systems, communications systems and physical locations within the
home
(such as medicine cabinets or chemical cabinets) and has recently added additional green energy
technology such as surge protectors and energy efficient lightbulbs.
Nerd Alert
Elevate customers enjoy in-person, on-demand IT and technical support whenever they need it through
Nerd Alert.
Elevate Nerds are dispatched to a customer’s home to perform installation, configuration, or recovery
services on a wide array of consumer electronics, software, and computer hardware. Customers are able to
purchase Nerd Service on a one-time basis or on a subscription basis for a substantial discount.
Elevate Genius Rewards Program
Elevate distributors and customers can enjoy a rewards network that truly gives back. Combining nationwide
discounts with a local rewards program similar to Groupon, participants also receive one-on-one Genius
tech support, travel discounts and medical consultations live via webcam or phone without the cost of
deductables or co-pays.

mobile

mobile


7

Our Products
Grae
Elevate Grae is an Android-based handheld control and automation console that serves to integrate all
Elevate services through a single user interface. Through Grae, Elevate customers can configure, maintain
and otherwise control all aspects of their Elevate services, from arming an alarm system, to paying a bill, to
uploading and installing new digital phone software features.
Foxee
Elevate brings its commercial-grade digital phone product to market through the sub-brand Foxee. Foxee
incorporates the rich feature set of Elevate’s home digital phone offering into a robust customer
communication platform that includes eMarketing, CRM and CMS applications.
Zipadi
Elevate operational systems utilize Zipadi technology to create device-nonspecific software applications for
the Certifiable Genius and Nerd networks. Commercial customers can license Zipadi software to create their
own rich media applications for the mobile and smart device hardware set.

Operating Business Units
Elevate Residential
Elevate services are configured for either residential or commercial markets based on factors such as
volume, support level, engagement and consultative pricing and regular rate scheduling. In some cases,
Elevate residential services are augmented by commercial only software applications (as in the case of
Foxee Phones).
Elevate Consumer Products
Elevate Consumer Products offers a wide array of smart devices and hardware. Elevate Grae is a Android
tablet device which will offer a complete integrated smart system for homes and small businesses. This
multi-function device will become the centerpiece of the Elevate digital services offering. Elevate Consumer
products is also the research and development division at Elevate. Our development teams are working on
a full line of consumer and business applications which will enhance our overall offering.
Elevate Small Enterprise
Elevate goes to market in the small business space with a combined digital phone and customer
communications platform, commercial grade security alarm and facility control systems, and large
bandwidth Internet access packages. Elevate offers continuous technical and application support and
account management services through commercial divisions within the Nerd and Genius reseller networks.
Elevate Infrastructure
Elevate Infrastructure is a low voltage design, engineering and consulting practice. Elevate Infrastructure
provides large scale design and integration services for commercial, light industrial, multi-family and
enterprise applications. We offer complete systems integration for networking, security and surveillance,
fire detection and suppression systems. Our current list of customers include large commercial contractors,
national production home builders, hospitality developers and medical facilities developers. We have
established relationships with notable brands including Diebold, Microsoft, and Linq360.
Elevate Advanced Technical Services
Elevate operates a growing nationwide network of independent professional installers who exclusively
install and service Elevate systems and hardware. We currently offer licensed and authorized technicians in
five major US markets.
Elevate Certifiable Genius Network
At the center of every customer engagement is The Elevate Certifiable Genius. Unlike other providers, who
rely on impersonal sales and outsourced support agents, Elevate is sold and supported exclusively by an
independent local professional who is capable of handling all support questions and technical issues. An
Elevate Certifiable Genius develops and cultivates a long-term relationship with every single subscriber. The
Elevate Certifiable Genius Network consists of a proprietary training and certification system and

8

a continuing education program designed to ensure our people are always up to speed on the latest
advancements in technology and their respective use cases.
Elevate subscribers purchase from an Elevate Certifiable Genius. The relationship begins with an in-person
needs analysis to ensure that we understand and deliver exactly what each customer needs to get the most
out of their digital services. The relationship continues as the Certifiable Genius provides on-going support
and personalized training on every product or service sold. When a subscriber needs help, the Certifiable
Genius becomes the go-to-guy for all support questions. An Elevate Certifiable Genius is an independent
business owner who represents exclusively the Elevate brand. He/she cultivate one-to-one personal
relationships and manage their own book of business. They receive marketing and sales support, training
and ongoing subscriber support from Elevate. An Elevate Certifiable Genius becomes an integral and
permanent fixture for every subscriber.

Our Brands

Opportunity
Traditionally service providers, including the industry giants, have grappled with their inability to maintain
customer loyalty. We believe this is due to a lack of attention to the most fundamental aspect of loyaltyservice. As competing technologies reach parity in terms of performance and consumer perception, or as
other competing carriers offer the same technology at a lower price, technology becomes moot. Customers
will always abandon when the only differentiator is price. As a result carriers are forced to make huge
investments in infrastructure and technology advancements while having to increase expensive advertising
to remain relevant. The result is very little to provide attention to the customer. While increasing margins by
outsourcing customer care and implementing hidden below the line charges may seem like a good idea, we
believe it provides the opportunity to do better. At Elevate we call it “The Give a Crap Gap.”


9

The Give a Crap Gap
Service Gap – Traditional providers do not understand the needs or wants of their consumer. Customer
acquisition and not customer loyalty is the primary focus. 57% of broadband customers report dissatisfaction
with their service, and 84% of those that switch report that poor customer service was the primary cause.
Experience Gap – The typical service professional in the digital services space is just skilled enough
to operate a cash register or billing interface. Outsourced customer care and customer relationship
management has lead to over-specialization in customer service - making it impossible for a single service
person to have all the skills and authority to actually do anything constructive for a customer with a problem.
Technology Gap – Technological advancement is outpacing most consumers’ ability to understand the
differences between what they have now and what will be available in stores next, beyond simply the hope
that ‘it will be better, faster, etc’. The net result is a gap between what consumers understand a service or
product to provide, and what the product or service actually does. Consumers end up paying for technology
that does not meet their needs.
Pricing Gap – As technology-driven, and not service-driven, offerings become homogenous, pricing
becomes more and more competitive. Providers who are eager to maintain margins and ensure future cash
flows seek to lock consumers in to contracts through product bundling and similar strategies. Inevitably,
such strategies simply serve to further frustrate consumers.

Market Opportunity
Large Addressable Market Opportunity – Elevate reaches a market of over 150 million potential customers
in the United States.
High Demand Opportunity – Demand for broadband is predicted to double every year for the next ten
years.
Socioeconomic Opportunity – Elevate offers products and services positioned to reach across the
socioeconomic landscape.
Residential Market Opportunity – Elevate reaches more than 80 million households in its target markets
SMB Market Opportunity – Elevate has developed a line-up of unique products aimed to serve the SMB
market. Currently we are positioned to approach more than 5 million SMB’s in our existing coverage areas
Enterprise Market Opportunity – Elevate for Enterprise is a collection of Enterprise services and software
offered exclusively by Elevate.

Strategic Advantages
Operational Advantage – Carrier class interconnect agreements make the Elevate network the largest
hybrid 3G/4G network in the United States. Multiple agreements allow Elevate to transcend facilities based
infrastructures to provide custom tailored products packages that are not limited to a single network.
Competitive Advantage – Major service providers are not creating a relationship. Their relationship with
the customer is based entirely on technology and price. Elevate products are sold and serviced through a
direct service model leveraging aggressive and experienced local, independent owners that can build and
cultivate one-on-one customer relationships. While others create long term customers through “locked in”
contracts, we focus on building long term loyalty through personalized service.
High Growth Low Cost Advantage – Demand for wireless broadband and cloud-based network services
is projected to grow by more than 85% in the next five years. Informa predicts that by 2014, 30% of the
world’s population (over 2.5 billion people) will access Internet-based goods and services through a wireless
broadband network. Through existing carrier-level agreements with national 4G broadband service
providers, and pending agreements with others, Elevate is structured to become a leading provider of
wireless broadband services.

10

Platform Advantage – Elevate has invested more than three million dollars in the development or acquisition
of critical operational systems and applications. Our recruiting and sales training practices have been refined
and perfected over a decade of record-setting performance. Finally, Elevate management has a relationship
through past projects with a network of over 5,000 experienced and successful direct sales professionals who
are looking for the next evolution in the industry.

Situation Analysis
Traditional digital services providers are unable to maintain customer loyalty because they have limited their
value proposition to the benefits of the technology upon which they deliver their services, and in so doing
have neglected to provide customers with a unique reason to remain loyal to their brand instead of their
technology. As competing technologies reach parity in terms of performance and consumer perception, or
as other carriers offer the same technology, infrastructure arguments become moot, and customers leave
looking for a commoditized product at a lower price.
Attempts to retain customers have focused primarily on product bundling and pricing strategies that ‘lock in’
a customer to a specific provider, forcing him to remain a customer because the alternative would be too
time consuming and troublesome. Interestingly, consumers recognize this strategy for what it is, a strongarm tactic not designed to encourage loyalty, but to discourage attrition. As providers depend more heavily
on discount pricing of commoditized services to attract and retain customers, the market will become ripe
for a new player willing to offer more than just rhetoric concerning their network infrastructure, or the
benefits of technology.

Opportunity
Elevate, Inc. comes to the digital services market with a profound competitive advantage bourn from a
proven operational model, an intelligent network partnership strategy, and a hard-won insight into customer
behavior.
The key insight driving the creation of Elevate’s unique sales and service model is the understanding that at
the end of the day, it is the relationship a customer has with his provider, and not his provider’s technology,
that engenders loyalty. In other words, It’s never been about the technology, but about the total customer
experience. To that end, Elevate has created a relationship-based direct sales and service model that
leverages an army of aggressive, highly-experienced, and technically savvy independent contractors who are
able to build and maintain one-on-one relationships with each and every customer in their area on behalf of
the Elevate Brand.
Elevate operates a technology agnostic network, which enables independent contractors, or Certifiable
Geniuses, to configure product ‘stacks’ with component services from multiple, locally available
infrastructures. Elevate Certifiable Geniuses have the latitude to configure product packages that make the
most sense for their customers, irrespective of network technology, because Elevate’s network utilizes all
technologies.
Elevate is the answer to the telecommunication industry’s identity and customer loyalty problem. Through its
direct sales network, Elevate can penetrate markets that have yet to adopt lucrative broadband
technologies. As a consequence of its focus on local relationships, it can win and then retain existing
broadband services users. And because of its technology agnostic network, it can continue to provide its
customers with the latest digital services.


11

Go to Market Strategy
Elevate has developed a go to market strategy that:
•
•
•
•

Identifies our various markets, including current perceptions and purchase drivers.
Outlines our sales and service model.
Articulates our messaging platform.
Defines our corporate, retail, and recruiting marketing plan.

RESIDENTIAL MARKET
Current users - Research reveals that a substantial number of current broadband customers are dissatisfied
with their provider’s services. Possible causes for dissatisfaction are a misunderstanding of the features,
benefits and limitations of available network technology, misalignment of available products and the needs
of the customer, or an outright lack of vital or competitive products in a customer’s geography.
Customers who are unhappy with their provider’s service are likely to welcome an invitation to learn about
other available services, especially those not inherently tied to a single delivery infrastructure. Among this
segment of customers exists a great opportunity for education-based sales.

New customers who are seeking to adopt broadband technology – Research reveals that a substantial
portion of households in the United State have yet to adopt broadband internet access. Traditional providers
see this segment of the market as the greatest opportunity for growth, and are eager to capture the loyalty
of these consumers to meet revenue goals and to rebuild their damaged brands.
This market segment is easy to reach, already engaged in the purchase cycle, and ready to make a decision.
Members of this market segment are not as service driven as they are price driven, but may change
according to their individual experiences with their chosen provider.
New customers who are not seeking to adopt broadband technology – Many consumers have yet to adopt
available access because they are not aware of new infrastructure build-outs. Others may have concerns that
could be easily resolved if presented with the benefits of broadband technology by a trusted individual.
These late adopters represent a segment of the market that can only be effectively migrated to broadbandbased services through a face-to-face, relationship-based, consultative sales scenario.
SMALL BUSINESS MARKET
Current Users – Commercial grade broadband data products offered by legacy providers typically feature
higher speeds and bandwidth limits at higher subscription rates, but do not necessarily include more robust
customer service packages; even though it is expected by customers in this segment. Many traditional
providers do not offer fully integrated product packages that include all five of the most popular digital
services and few if any of them offer additional software applications to support or implement their
customers’ business operations.
New Users – Similar to current users, new customers expect to pay greater fees, and would prefer access to
more comprehensive customer support.
Although some specific drivers may vary among segments, the need for quality customer support, including
education about available products and services and the benefits and applications of each, is common to all.
Additionally, each segment desires, and would likely make a purchase decision in favor of, a carrier that
provides product packages that meet their specific needs.


12

Sales and Service Model
The Traditional Distribution Model is Failing
Research shows that providers who rely on centralized sales and service models are unable to meet the
customer service expectations of their install bases. High demand for broadband access has driven
residential and commercial customers alike to accept poor service as a necessary evil, but only as long as no
alternative exists. Once geographical network monopolies give way to continued network build out, and as
options become available, consumers will abandon the providers that chose only to invest in their
infrastructure and not in their relationships, especially when price and performance are not substantially
different.
The question, then, is how can Elevate bring digital products to the market in such a way as to create
customer loyalty?
The answer is genius.
The Elevate Certifiable Genius
Elevate understands that the latest technology alone is not enough to win and keep a customer. Therefore,
Elevate has established a professional connectivity services Brand, and has developed a network of locally
owned small businesses that create and cultivate relationships that produce sales and maintain customer
loyalty. This direct sales and service force is comprised of aggressive, bright, highly-trained and experienced
small business owners who have earned the right to represent Elevate in homes in their area. We call them
Certifiable Geniuses.
Certifiable Geniuses specialize in digital services delivered over broadband data networks. They are
committed to building long-term meaningful customer engagements. They are compensated both on their
ability to sell to new customers, and on their ability to retain and cultivate existing ones. Certifiable Geniuses
are the raising of the bar in the broadband digital services industry.
Elevate will recruit, train, certify and deploy thousands of Certifiable Geniuses throughout the U.S. and
Canada, and will support them with lead generation activities that will supplement their independent sales
efforts.

Product Strategy
Traditional providers have sought to win back disgruntled customers, combat rising attrition, and ultimately
break parity with discounted product bundles. Voice, video and data packages have become the standard
product configuration, and serve to tie a customer more closely to his provider. This strategy is not lost on
consumers, 67% of whom recognize bundled services as a way to “lock them in” to a particular provider.
Bundles have failed to provide any one carrier a competitive advantage because every carrier offers the
same additional products. Once again, the only difference between providers is the underlying technology
of their networks, and that was the problem to begin with.
The Elevate Stack
Elevate operates a different kind of network, which allows it to offer a better product. Instead of product
bundles that are inherently tied to one delivery infrastructure, Elevate ‘Stacks’ are product configurations
whose components services can be delivered irrespective of network technology. Elevate is able to
transcend infrastructure technology because of the multiple carrier level agreements we have negotiated
with many of the nations major providers. Whether is DSL, Cable, 4G Wireless, or Fiber Optic cable to the
home, Elevate provides the customer with the flexibility to choose from among any locally available delivery
networks.
Elevate’s cloud-based digital are delivered through the Elevate Integration Panel – something of a ‘brain’ for
the home. Customers who, with the help of a Certifiable Genius, configure an Elevate Stack of services can
monitor and manage those service directly from the integration panel. With our product road map, iOS and
Android based applications will allow that same management functionality to be extended to a custom-er’s
mobile device.

13

Elevate Stack Ecosystem
TM

Elevate Stack provides access to communications, applications and content through a monitored security system
which provides a one touch button for concierge, help desk and emergency services.

Communications
Smart Home Phone
Email / SMS
Mobile

Applications
Security

Content

Television / Movies

Video Surveillance
Automation

Games
Music

Security

Elevate Network

Ultra-High Speed Network Access

Help Desk Services

Elevate Control Panel

VOICE . VIDEO . DATA . SECURITY


14

Concierge Services
Emergency Services

Elevate Enterprise Management System
Proprietary Back Office Operations Platform

Elevate operates a comprehensive back office management suite to facilitate Total Quality of Service.

The Elevate Total Quality of Service is both an operational philosophy and a sophisticated back office system
designed to deliver the very best customer experience.

Customer Care
Elevate has developed a proprietary CRM system which enables us to deliver one-to-one relationship management
through a dedicated call center and a network of Certifiable Geniuses.

Flexible Pricing Matrix
Our cloud-based billing system is dynamic and scalable. This enables us to develop flexible product pricing and
unique product offerings.

Help Desk
Elevate operates a 24 hour support help desk. Our help desk can be contacted by phone or live chat.

Monitoring
Elevate is able to provide sophisticated security monitoring services through an integrated cloud-based system


15

Elevate Enterprise Management System
Proprietary Back Office Operations Platform

Elevate operates a comprehensive back office management suite to facilitate Total Quality of Service.
Elevate Total Quality of Service is managed using an enterprise back office system developed exclusively for
Elevate. The system provides reliable and scalable back office operations for managing quality of service and
to manage engagements with customers, certified integrators, partners and stakeholders.

Elevate Total Quality of Service Technology Ecosystem (TQOS)
Elevate Dashboard

Cymbeo CRM

Cymbeo ERP

Zuora Billing

ZenDesk Help Desk

WS

Customer Self Help

Contensive CMS

Network Operations

Elevate Data Network

Elevate Voice Network

Accounting + Finance

Elevate Video Network

Elevate Mobile Network

Quality of Service
Monitoring

Emergency Monitoring

Service Level Monitoring

Network Monitoring

Security
Monitoring

Help Desk
Monitoring

Concierge
Monitoring

ECI Services Monitoring

Public Web Site
ECI Replicated Retail
Website

ECI iPad App
Elevate Enterprise Mananagement
System Interface

Customer iPad App

ECI Web App


16

Elevate Certifiable Genius

TM

Proprietary Sales and Management System
Elevate is publicly traded digital services company which is locally operated in your neighborhood by a
nationwide network of independent Elevate Certifiable Geniuses .
TM

The Elevate go-to-market strategy dispells traditional thinking about digital service providers by localizing sales
and service through a network of highly-trained, locally owned and operated small businesses.
Elevate Certifiable Genius is your local expert. He is a business owner who cares about every single customer.
TM

Elevate

CERTIFIABLE GENIUS

Residential

Residential MDU

SMB

Enterprise

B2B Channels to open Q1 2012
An Elevate Certifiable Genius must meet all certification criteria to achieve earn the right to be
called a Genius.
Elevate Technical Aptitude Test
The Technical Apptitude Test (TAT) ensures that each Certifiable Genius has the required skills to
effectively manage the total customer experience.
Certified Sales Team
Each CG must demonstrate their ability to recruit, train, motivate and manage an effective
direct sales team. CG’s must maintain a minimum of 10 active Geniuses.
Customer Engagement Total Quality of Service
Each CG must demonstrate their ability to support customers by remaining actively engaged
with their book of business. CG’s provide first tier support and must maintain the Total Quality
of Service SLA with each customer.

Organizational Structure
Global CG
Services
National CG
Services
Regional CG
Services
Customer Support
Help Desk


Sales Support
Help Desk

17

Technical Services
Help Desk

Messaging Platform
The Elevate messaging platform provides the foundation for consumer, investor, and network facing
marketing communications, and ensures consistency in our position across all audiences. The platform is
derived from key consumer insights and outlines our market position, value proposition, brand promise,
competitive messaging and messaging architecture.

Key Insights
Elevate has a story to tell; one that will be heard because it speaks directly to the real needs of the jaded
broadband and digital services customer. The Elevate message is founded on a number of key insights
into the habits and attitudes of the consumer:

Key Market Insights
Customer service is the biggest failure among large ISPs that are currently (or capable of) offering, bundled digital products. Attrition is
primarily due to poor customer service, or lack of customer-centric business practices, and not price.
Consumers are unable to brand beyond the technologies they utilize, yielding competitive messaging that is ultimately an infrastructure
speeds and feeds battle.
Carriers cannot transcend their infrastructure technology.
Technology comparisons (eg. DSL vs. Cable vs. Satelite) among the data user community far outnumber carrier comparisons - probably
due to technological exclusivity among carriers.
Brand loyalty in the data space is non-existent. Market share has been primarily driven by perception of infrastructure technology.
Most consumers aren’t concerned about the specifics of the technology, they just want the ‘best’, and they want somebody who feels responsible
to fix it when it breaks.
Digital services subscribers have been conditioned to believe that a poor customer experience is the price they must be willing to pay for
affordable access to a reliable and legitimate network.
The average digital services subscriber is NOT, and does not want to become, technically savvy.
Technically savvy individuals are respected by customers who have encountered problems. They are seen as ‘good guys’ in an
otherwise uncaring bureaucracy.
The common customer trusts a technician more than a sales person.
Data subscribers have a deep mistrust of their ISP resulting from poor customer service.
Elevate should not try to compete with traditional, large ISPs on their own terms as most of the negative perceptions that plague those
ISPs are a result of their massive size.
Customers will hold a local small business representing a national brand to a different standard than a national brand representing itself.
When represented by a local small business, Elevate neutralizes the “I’ve never heard of you, but I’ve heard of AT&T” concern.
Customers respect technical knowledge, and consider it a valuable and marketable skill. The same cannot be said for sales or account
management ability.
Evangelical customer loyalty is only won after a brand has succefully resolved a customer’s problem. Therefore, and paradoxically, real
brand loyalty in engendered only AFTER there is a problem with the product; it has nothing to do with the performance of the technology.

Elevate will exploit the weakness of traditional carriers by offering a unique personal customer engagement.
The Elevate Certifiable Genius is the difference.


18

Market Position
Elevate will position itself as the customer service leader by focusing marketing communications on its
one-to-one distribution model and the benefits of local, relationship-based sales and support. “Elevate is a
technology company that realized it likes people,” and other similar advertising statements emphasize our
commitment to mutually beneficial relationships over a specific technology or short-term acquisition
strategy.
The exact verbiage and final marketing copy of any discrete piece or program will depend on the specific
audience to which it is directed, according to our messaging architecture. However, the essence of
our position is already a driving force in the hearts and minds of the leadership at Elevate. The general
components of the Elevate market position are:
Unique Value Proposition
Elevate operates a nationwide network through which it can:
Deliver technology-agnostic digital services in Stacks that are custom configured, managed and supported
by a Certifiable Genius on a one-to-one basis.
Brand Promise
The Elevate brand promise is the single, primary benefit that each one of our customers believes he will
receive every time he interacts with our company. It is the sum of what we promise and the core of what we
deliver. It is the test that our customers put us to every day. It is best expressed as a hypothetical statement
made by the customer:
Elevate understands my specific needs, and does not rest until they are met.

Competitive Messaging
Elevate is different than any other provider, and is organized to be able to deliver a customer experience
that other providers are simply unable to provide. Our competitive message is very clear and concise:
When you need something, and you will, do you want to call a service center in another part of the world, or
do you want to call your friend across the street.
Additional messaging will, of course, be forthcoming as marketing content is honed and polished.

Messaging Architecture
Elevate has identified each of its audiences, from retail single product customers, to shareholders, to
prospective employees. The fundamental brand position remains clear and constant in each message
tailored for each audience. Elevate has developed an architecture, or matrix, delineating the exact message,
channel and demographic break down for every permutation within the matrix.


19

Marketing Plan
Marketing Communications
Elevate has developed a tactical plan to communicate to each of the audiences identified in its messaging
architecture, a summary of which is herein disclosed.
Prospective Customers
Outside of the direct contact that a Certifiable Genius will initiate with each customer, the public facing Web
site is the primary channel for general product and service information dissemination among the residential
and small business markets. For the first stage of operations, Elevate expects the public facing Web site will
serve as a confirmation of legitimacy after a customer has been exposed to the brand through another
channel - most like a face to face one. However, as Elevate gains a larger customer base and greater
exposure in the national market, the Web site will become a prospective customer’s first contact with the
brand, and consequently a substantial lead generation center. Elevate is deploying the public facing Web
site over a content management system, allowing for rapid change of content, design and functionality to
meet the evolving requirements of the site.
As a major lead generation center the public facing Web site will necessarily integrate with other major
marketing initiatives, including SEO (search engine optimization), Google Places optimization, online referral
programs, pay per click advertising, and limited traditional advertising (described below).
The visibility of both the Elevate and Certifiable Genius brands in a local market is crucial for widespread
adoption. Consequently, Elevate will develop and execute a mass-media advertising strategy for each
geography it opens. Strategies will vary by market, according to demographics, size, population, etc., but
may include one or more of the following: Outdoor, broadcast, print, sponsorship, and direct mail. The
strength of the Elevate model is its ability to reach local markets effectively without massive advertising
expenditures. Therefore, when advertising is used, it will be used to supplement Certifiable Genius sales
activities, and not to replace them.
Elevate understands it is imperative to strictly manage both the Elevate and Certifiable Genius brands,
especially when leveraging an independent sales and support network. Elevate has developed, and will
continue to develop, all the necessary customer-facing marketing material and programs for use the
Certifiable Genius network. Elevate channel marketing tools, currently include sales brochures, mobile sales
and informational applications, mobile customer on-boarding applications, traditional paper-based leave
behind collateral, and customer contracts. Elevate has developed a Certifiable Genius replicated Web site
strategy that will allow local Geniuses to create, maintain, and leverage a personalized, branded Web site.
Current Customers
Elevate will leverage its current enterprise-level customer relationship management (CRM) system to
maintain customer communications. Elevate communication programs will be heavily supplemented by that
of the local Genius, who will utilized integrated systems to effectively manage their ‘book of business’.
Elevate has yet to determine whether it will extend the functionality of its core CRM system to its
independent sales and support force, or if it will implement a different system altogether. Cost to benefit
analysis are being conducted at the time of the creation of this document.
Elevate will sponsor and manage a social media based public relations program on behalf of the Certifiable
Genius network, as detailed in the public relations section of the plan.


20

Prospective Employees
Elevate will leverage social media trends and technologies to effectively communicate to prospective
employees.
See the Public Relations section of the plan.
Current Employees
Elevate will communicate to both corporate employees and independent Geniuses through a corporate
intranet.
Prospective and Current Shareholders
Elevate expects that, due to its SEO and other marketing activities, shareholders will visit the public facing
Web site for information. Elevate will maintain a separate information repository and direct traffic to it from
the public facing Web site.
See the Public Relations section of the plan.
Public Relations
Elevate will supplement its marketing communications plan with a social media strategy that leverages popular and highly respected communications outlets to manage its public relations, general brand messaging
and recruiting activities. According to the SM strategy, Elevate must focus on four general areas:
1.
2.
3.
4.

Executive communications and reputation management
Industry and investor relations
Retail (business and residential) relations
Recruiting

Elevate has opted to implement a public relations strategy that leverages existing and heavily used
information channels in order to expedite the efficacy of our messaging platform and to ensure widespread
reach. In some cases, Elevate will not establish traditional communications platforms, i.e. a corporate or
recruiting website, and instead focus on optimizing existing social communications platforms.
Different social media channels will be used for each area of focus, according to the demographics and
information consumption habits of the audience. Although the strategy defines the audience, objectives,
publishing schedule and message for each area, and then recommends the appropriate social media
applications or ‘sites’, the specific channels utilized may change as new applications or sites are developed
and deployed across the Web.
Following is a brief overview of the public relations plan:
Executive Communications
Executive communications are directed specifically at potential investors, employment prospects, customer
prospects and acquaintances of CEO Wright Thurston who are contemplating involvement with the company
and wish to understand the executive personality and the philosophical underpinnings of the Elevate
movement.
Executive Communications will be published bimonthly through a personal CEO blog and then periodically
updated via a personal Twitter ID. Articles published through this channel will alternate between discussions
on the principles behind the Elevate movement and practical applications of those principles, at Elevate, in
business and occasionally in life. The Executive Communications channel will be the chief initial sounding
board for the philanthropic message of the Company, positioning the CEO as the driving force for Elevate
charitable activities and community involvement.


21

Industry and Investor Relations
The Elevate public facing website will be heavily supplemented by additional communications directed specifically at industry analysts, investors, employees and similar shareholders.
Industry and investor communications will be published trimonthly through a corporate blog and then periodically updated via a corporate twitter ID. Articles published through this channel will provide official Elevate commentary on Industry trends, Investor news, technology reviews, competitive messaging and the
like. Essentially this is where interested parties can go to get the Elevate take on things.
In addition to periodic content, all official press releases will be archived and indexed by date and key
phrase for easy reference. The industry and investor communications channel replaces a corporate, investor
facing website.

Retail (business and residential) Relations
The Elevate public facing web site will be supplemented by additional public relations communications and
special promotions communications directed specifically at retail audiences in each of the segments
identified in the Target Market section of this plan.
Elevate will establish an Elevate branded Facebook corporate fan page that will be used to communicate
special offers, customer appreciation messaging and generally ‘lighter’ customer interactions. The Elevate
Facebook page will exemplify and demonstrate the Elevate brand promise and value proposition by serving
as the primary relationship development platform of the brand. In other words, Elevate will us Facebook to
create relationships and not to sell product.
Facebook communication will be updated twice weekly (no more) and will work in concert with limited
official Twitter activity.

Recruiting
Elevate has established online properties including a public Web site and customer portal as well as a
Certifiable Genius-branded Facebook fan page to communicate to its prospective employee base. Elevate
sales managers and executives will use the features and applications of the Certifiable Genius Facebook
page, as well as an official Twitter ID, to motivate and train, and recognize excellence within, the Elevate
reseller base. Prospective employees will be invited to follow the fan page, allowing them to observe
firsthand the lifestyle, benefits and challenges of the Certifiable Genius community.
The exact publishing schedule for the recruiting communication channel has yet to be determined, as it will
work in concert with the executive communications channel to provide new prospects and existing resellers
alike the opportunity to hear from, and react directly to, the CEO. Special attention will be given to
recruiting by the CEO through the executive channel, to demonstrate the commitment of Elevate, and the
CEO in particular, to the development and success of its Certifiable Geniuses.


22

Elevate Market Situation Analysis
Everyone wants better technology AND better customer service!
Elevate wins new business by offering upgraded digital services and personal one-to-one consulting through
a network of locally owned independent small businesses.

The residential market for Elevate subscribers consists of three segments:
Current Broadband and Digital Services Subscribers
Current Broadband and Digital Services Subscribers who report unsatisfactory service
Households yet to adopt broadband due to price, availability or poor service.
Total US Broadband Subscribers 83,344,927

DSL

10.9%

CABLE

WIRELESS

DSL

14.6%

CABLE

1.7%

These are the customers we win
with a totally new way of looking
at a digital services provider.

WIRELESS

Total Subscribers Currently Reporting Dissatisfied with Customer Service

DSL

56.7% DSL

CABLE

45.2%

WIRELESS

CABLE

38.7%

WIRELESS

Current subscribers who report total quality dissatisfaction.
Total US Broadband Market 150,000,000
Includes the “yet to adopt” segment (Every American Household)


23

This segment recognizes the
Elevate difference immediately.
These are the low hanging fruit.

Elevate Stack Customer Experience
TM

A powerful competitive advantage
We create lasting relationships with every customer,
one living room at a time.
The Elevate Difference

Archaic Providers

Locked In

vs

Loyal

Traditional Providers

The Elevate Way

Locked in to one network technology

Cloud based services for voice, video, data
mobile and security through the Elevate
Integration Panel.

Locked in to one pricing model
Locked in to limited products

Offers DSL, FTTH and Wireless Solutions

Locked in to legacy billing systems

One touch button to access customer care
and technical support. Instant access to a
dedicated account manager.

Locked in to facilities based infrastructure

Customers Experience

Customers Experience

67% of customers view bundled services as
a way to “lock me in.”

Customers have instant access to thier own
account manager.

57% of customers report dissatisfaction
with customer service.

Customers have instant access to desktop
support for all their applications.

Customers do not care about technology. They
care about experience, functionality and content.

24/7 support on the web, the phone, the desktop
and in person.

Customers want their technology to work, and
when it doesn’t, they want somebody to fix it.

One integrated solution.
One device, many technologies.

84% of customers who switch providers report
doing so because of poor customer service.

Connecting customers to the right network.

Funding Plan
Elevate is seeking $5 million growth capital. Elevate will employ this capital to support ongoing market
expansion and continue product development. Elevate is committed to capital efficiency. We operate our
business on a specific set of core values.
Governance is provided by a Board of Directors who collectively author corporate policy, and supervise the
execution of the business plan. Day-to-day management of the business is conducted by the Executive
management team, who reports to the Board on a monthly basis. Additional oversight is provided by
an Advisory Board comprised of industry veterans, highly experienced business executives and talented
innovators. The Advisory Board’s function is to contribute to long-term strategic planning.
Elevate has developed an action plan which allocates specific financial and personnel resources toward
achieving six primary objectives. Capital assets will be allocated as follows to meet these objectives:


24

Use of Funds
Sources
Equity Raise

Uses
$5,000,000

Inventory
Customer Acquisition
Operations
Product Development

$800,000
$2,000,000
$400,000
$1,200,000

Recruiting & Training
Online Marketing Network

Total

$5,000,000

$400,000
$200,000

Total

$5,000,000

Funding Objectives
Inventory ($800,000)
We will invest in inventory and fulfillment to support new account creation.
Customer Acquisition ($2,000,000)
We will invest in new account creation. We estimate sales to exceed 25,000 new accounts in 2014.
Operations + Staffing ($400,000)
Elevate expects that it will be necessary to continually expand core operations staff and improve operational
systems in order to support growth through new customer acquisitions.
New Product Development ($1,200,000)
Security + Automation Product Development
Elevate will continue the development of a proprietary integrated security and home automation control
device. Research and development efforts are under-way and we anticipate the commercial release of
Elevate’s own security control panel early in fiscal Q1 2015.
IPTV Product Development
Elevate engineers and strategic partners are in the final development phase of an exclusive IPTV platform.
We have allocated funds to complete a commercial launch in fiscal Q3 2015. The expansion of our digital
entertainment offering allows us to capture increased margins and reduce costs of goods sold, adding to per
subscriber profitability.
Software Product Development
Elevate engineers are developing a suite of software applications for residential and business customers.
Certifiable Genius Network Recruiting ($400,000)
Elevate will expand it’s network of “Certifiable Geniuses” to 1,500 independent business owners. We have
allocated budget to marketing, recruiting, and training initiatives.
Certifiable Genius Network Operations ($200,000)
Elevate is the creator of an advanced cloud software system which efficiently manages customer
engagements, automatically tracks sales commissions and incentives and provides marketing and sales
tools for our independent sales representatives. This software supports customer service and provides for
automatic paperless billing. We have allocated funds to expand the Elevate Digital Desktop by expanding

25

its capabilities for online sales and marketing. Initiatives include the addition of expanded e-commerce and
fulfillment capabilities, search engine optimization and improved analytic tools. We will also expand the
direct selling capabilities of the system by deploying a site replication system to support individual sales
efforts by independent sales representatives.

Corporate Mission
Elevate will deliver astonishing products and services through a unique and remarkable customer journey
and unmatched customer engagement process. We deliver the very best service and products and services
which help our customers transform their digital life. We help our customers save money, make money and
make life easier.
We will create financial opportunities for every individual who is capable and willing to work hard. We work
with individuals who are relentless in their personal pursuits and are willing to dedicate themselves fully to
making every customer engagement a remarkable and memorable journey.

Corporate Mantra
STACK The Elevate Stack is designed to deliver the very best digital services.
SAVE Elevate saves its customers money through low cost products and value added services.
We save customers sanity by delivering our products through a direct engagement network.
We save shareholders value by limiting the attrition of our customer base.
SERVE The Elevate Greater Good Foundation is committed to corporate responsibility and philanthropic
initiatives
SOAR Elevate provides an opportunity for driven individuals to become professionally fulfilled.


26

Elevate
The Concept is Born

Elevate Communications
and Elevate Marketing
Group was formed.

Operational + Sales
Test Conducted

Raising Funds
Operations + Sales
Tests Continue

Operational team hired

Recruiting begins from
existing databases

Summer 2008

Jul - Dec 08

Jan - Feb 09

Jan - Mar 09

Prelaunch Sales Test

Relocated to California

Installs over 5,000
units in the first 45 days
of prelaunch sales test.

Operations + Sales
Testing

Sales Launch
Full Bundle Integrated
50 Sales Reps

Launches Nerd Alert
and nationwide tech
footprint
Over 50 Reps
Smart Home product
line launched

Apr - Aug 09

Aug - Dec 10

Spring 2011

Summer 2011

Over 50 reps

Vault asset acquisition

Opened sales markets
in Florida and California

Dallas Market Opened

Partnered with Sprint and
Clear wire networks for 4G

Worked on Certifiable
Genius Program

Monotronics – national
alarm provider

Sales Reps in FL, CA full
time testing the Stack
platform

Platform Integration and
Development

Summer 2011

Spring 2012

Summer 2012

Winter 2012

Expanded digital
marketing position
to target online initiatives
and social media

Expanded distributor
coverage in FL, TX, CA

Strategic partnerships ERS,
Syntrol, Satic

Stack ready for market

Spring 2013

Summer 2013

Fall 2013

2014


27

2,000 reps for 2013-14

Corporate Leadership
Elevate has assembled a world-class executive team. We have been very lucky to get highly qualified
professionals to lead each operational division of the company. Together we have made great strides in
executing the vision and operational strategies for the company.

Wright W. Thurston, CEO
Wright Wesley Thurston, has served as our Chief Executive Officer, President, Treasurer
and a Chairman of the Board since February 22, 2011. Mr. Thurston is a successful, serial
entrepreneur who began his career in 1996 with the formation of Future Phones, an
independent direct sales company in the emerging cellular phone industry. Future
Phones achieved acclaim as one of the fastest growing and largest independent direct
sales organization in the cellular phone industry. Beginning in 1997 through 2001 the
company recruited, trained and deployed more than 2000 independent sales
representatives throughout the United States. The company was one of the first to offer
an e-commerce Web site focused on direct sales of wireless phones during the
transformational period from analog to digital phones. Mr. Thurston sold Future Phones
in 2001 to OmniServe Wireless when he was just 24 years of age. In just a few short years
Future Phones transformed the industry by introducing a direct to consumer business
model and selling more than 20,000 subscriber accounts. Mr. Thurston has developed a
proprietary recruiting and training methodology, which made a lasting impact on the
entire mobile industry.
In 2002 Mr. Thurston recognized an emerging opportunity the subscription-based
monitored home security industry. A technology transformation was beginning to
happen, as security systems connected to a central station through a traditional land line
would be replaced by cellular communications. Mr. Thurston seized the opportunity to
make monitored home security available to a previously underserved market by devising
a new go-to-market strategy combined with innovative pricing and provisioning options
which would make monitored home security accessible for middle-income and lowincome families. As CEO of Firstline Security, Inc., Mr. Thurston directed its expansion to
more than 200,000 subscribers and more than $100MM in revenue. The company was
recognized as the fifth largest homes security company by SDM magazine and was listed
on the Inc. 500 in 2006. In the fall of that year, Mr. Thurston was recognized as a finalist
for the Ernst & Young Entrepreneur of the Year award.
During his tenure at Firstline, Mr. Thurston began to perceive a shift in technology, which
would have impact on virtually every digital service, from voice and data to security and
automation.
In 2007 he stepped aside as CEO at Firstline to form Elevate. Mr. Thurston has recruited,
trained and deployed more than 20,000 independent reps over the past decade. His
visionary approach to sales training and keen insights into market behavior has led to
more than 300,000 subscriber activations for digital services. Mr. Thurston is the author
of the proprietary compensation plan at Elevate,which compensates sales representatives
for both new customer acquisitions as well as long-term loyalty, a concept that is
revolutionizing the customer experience with digital service providers. Mr. Thurston has
consistently established, organized and deployed loyal sales teams who have set new
standards for customer loyalty and satisfaction. His pioneering spirit and attitude is a
source for inspiration and motivation throughout the enterprise. Mr. Thurston is a hands
on leader who often is found in the field and on the streets as he engages with Elevate
sales representatives, vendors and partners and Elevate subscribers.

28

Danielle Paletz, Vice President of Operations
Ms. Paletz is a highly motivated entrepreneur who began her career at the age of 15 in
1996 with Oasis Security. In 1999 She became the Vice President of ISI Alarms out of
Phoenix, Arizona. Sticking with the theme of serial entrepreneurship Ms. Paletz seized
the opportunity to build her own company in 2004 and served as the President and CEO
of American Alarm, Inc. with the goal to provide superior service to both company
representatives and customers alike. Over the course of her career, Danielle has
managed and directed over 500+ employees, been responsible for the sale and
installation of over 100,000 alarm systems and has been recognized and awarded for
being the most productive and largest growing dealer for five years in a row. Subscribing
to the idea that a company can provide superior service to both distributors and
customers along with saving the consumer money, Ms Paletz joined Elevate in April of
2012 as the VP of Operations.

Vince McLain, President of Elevate Digital Marketing
Vince McLain joined the Elevate team in 2013 as President of EDM with 20 years of
operations, inside/outside sales leadership, and call center experience. Mr. McLain has
specialized in building and growing companies, either from start up, or taking small
companies to the next level. Most recently he was Vice President of Sales at Computer
Prep where he reengineered existing products and sales processes in order to take the
company back to profitability. Prior to Computer Prep, Mr. McLain managed at Critical
Path, the largest technology IPO in 1999 where he built the inside sales solutions teams.
Mr. McLain also held management and senior management positions with Mastering
Computers, Platinum Technologies, Insight, and Discover Card.

Jenny Coplin, Vice President of Marketing
Prior to joining the Elevate team in 2013, Ms. Coplin served for 5 years as Chief
Marketing Officer and a member of the management board at Ivy Capital, one of the
largest online marketing companies in the business opportunity industry. From 2010- 13,
she served as CMO of Savanna Health where she spearheaded all marketing areas
including: marketing strategy, tactics, messaging and branding, press/community
relations, events, eMarketing campaigns, and all internal and external marketing
communications. Prior to her work with Ivy Capital, Ms. Coplin held management
positions with TSI, Inc., LuxuryChair.com, and Bennett Capital. Ms. Coplin brings with her
a wealth of direct selling and both traditional and online marketing expertise.


29

Jordan Folsom, EVP Genius Development
Throughout his ten-year career in the residential security industry, Jordan Folsom has
consistently set records for volume, both in personal and team sales. By 24, Mr. Folsom’s
aggregate personal and managed sales had generated over a million dollars in personal
income, a benchmark that remains unparalleled to this day. Mr. Folsom has applied
his unique talents to the development of Elevate’s field sales strategies, including the
creation and delivery of the Genius sales training program and related materials. Mr.
Folsom take the lead on new recruit training and development as Elevate expands
nationwide.

Jennifer Miller, Controller
Jennifer Miller possesses a deep understanding of the workings of successful direct sales
financial models. While at Firstline, Mrs. Miller provided the expense forecasting, sales
reporting and cash management that took the company to the Inc 500 in 2007. In 2008
Mrs. Miller joined Elevate, and has been the architect of the company’s pro forma and
financial modeling in her capacity as Financial Controller.

Board of Directors
Wright W. Thurston, Chairman
Wright Thurston sold his first company to OmniServe wireless when he was just 24 years old. Soon after, in
2000, Mr. Thurston founded Future Phones, and within 2 years became the largest independent dealer for
VoiceStream Wireless (now T-mobile) in the country, selling over 20,000 phones. Always eager to catch the
next market trend, Mr. Thurston founded Firstline Security in 2002. Over the next 5 years, he grew the
company to become one of the largest security alarm dealers in the country, winning numerous awards and
accolades along the way. Mr. Wright left Firstline in 2008 to found Elevate, and has served as its Chief
Executive Officer and guiding force from the very beginning.

Kathy Roberts
Prior to founding the Santa Fe Trust, Ms. Roberts held key executive positions at Discover Card, including
General Manager of Discover Card’s Recovery Division and Vice President/General Manager of its Salt Lake
Operations. In 2000, Ms. Roberts was appointed President and COO of Discover Bank, in which capacity she
served as the head of the Delaware Banker’s Association, and a member of the Morgan Stanley Bank Loan
Committee and the ABA council on Banking. Ms. Roberts has provided philanthropic leadership in her local
and national communities through her membership of the Delaware Board of Junior Achievement, the
Delaware Board of the YWCA, and the Board of Directors of the Morgan Stanley Charitable Trust.

Jordan Folsom
With over 10 years experience in direct sales and record breaking numbers in both personal and team sales.
Jordan’s unique experience and talents make him invaluable to the Elevate Board.


30

Advisory Board
As Elevate, Inc. grows and develops, so does the Advisory Board. Listed below are some of the innovative
individuals who have served most recently in that capacity:

John Norton
Norton Enterprises was a key supplier to Ready Pac Produce and other major distributors when the
packaged salad alternative for fresh vegetables became mainstream.. Mr. Norton later applied his business
and management acumen to a number of successful developmental projects both in private equity
investments, and real estate. In 2001 Mr. Norton provided the first angel funding for Rent.com, and played
an instrumental role in the enterprise’s early capitalization, overall management and its eventual sale to
eBay.

Peter Ford
As the Head of International Device Strategy at the Orange Group, Mr. Ford was responsible for developing
the highly successful Orange Signature strategy, a mobile business division device strategy that contributed
to massive market domination for the European telecom giant. The strategy was later adopted by Orange
owner, France Telecom and later applied to the fixed business. As Marketing Director of Toshiba’s
European Consumer and Business Mobile Communications Division, Mr. Ford pioneered specialized and
segmented marketing strategies that delivered a dramatically expanded sales footprint and significantly
improved financial performance.
Since 2007, Mr. Ford has consulted with international telecom providers, equipment vendors and VAS
providers from around the world, providing market insight and strategic advice.

Peter Cannistra
For over a decade, Mr. Cannistra has been a driving force behind the introduction of true wireless
broadband for consumers and businesses, and the adoption of 4G technology. As VP of Embedded Devices
and Business Development at Clearwire, Mr. Cannistra managed the strategic relationships with Intel, Best
Buy, and other world-class retail and OEM partners, that led directly to hundreds of thousands retail and
wholesale customer activations.
As VP of Strategic Partnerships and Business Development at Sprint, Mr. Cannistra managed the highly
strategic relationships with Google, Sony, Dell, Intel, HP, NBC, ABC/ESPN, Fox Interactive, Viacom, Disney
and other content producers, equipment manufacturers, and consumer electronics resellers. He was also a
key player in the successful execution of Sprint’s 4G initiatives. Mr. Cannistra’s work provided the basis for
Google’s $500MM investment in Clearwire.


31

Market Research
Demographic, Cultural & Social
The macro-environment for digital services indicates a sharp rise in adoption among virtually every
demographic. Socioeconomic and cultural boundaries reveal small variations in adoption rates. The result is a
large and addressable market that is ready to make the switch to more cost effective, higher-performance
services.
A careful analysis of adoption trends reveals slight advantages among Hispanic communities and sharp
advances in the education mix among college graduates. Elevate will focus marketing efforts among the
largest segments by geotargeting specific groups in key markets throughout the U.S. We will deploy specific
tactics to reach consumers including social media, direct sales and awareness across the digital spectrum.

Political
The government continues to play a significant role in telecommunications. Policies and regulations which
govern the industry continue to evolve to meet the rapid changes in technology, distribution and service
level agreements. Although policy initiatives often lag behind the evolutionary nature of the industry, the
ongoing efforts by government officials to level the playing field and prevent predatory practices among
legacy service providers ensure a strong environment for Elevate to compete.
The U.S. adoption rate for broadband services is increasing. Technology advancements are making new
services such as television over Internet protocol (IPTV) an emerging reality. While challenged by the rapid
changes in the market, policy makers are working to modernize regulations and consumer protections.

Economic
Financial factors such as lower price, promotional discounts, better services, and the convenience of a single
point of contact each are playing a significant role in the increasing demand for “bundled” services.
Economic conditions cause very slight variations in demand and adoption rates for bundled services. During
economic slow-downs demand increases because people tend to spend more time at home. In contrast,
favorable economic conditions also result in increasing demand, possibly a result of the rise in consumer
hardware sales. Economic conditions have little effect of the purchase of digital services.

Market Readiness
Fast-paced lifestyles and a growing intolerance for complex systems which operate in isolation are among
the most influential forces creating the demand for integrated digital services. Difficult user interfaces,
maintenance of multiple devices, and cost of ownership for equipment also play a role in influencing
demand. Carriers and service providers alike have recognized the challenge to keep up with changing
demands.

Addressable Market
Bundled services represents a large and addressable market. More than 150M households in the U.S. market
meet the minimum requirements of a typical Elevate customer. The typical American household has more
than three Internet enabled devices and at least one computer. As devices become more interconnected the
need for stable broadband access becomes more critical. Data devices are just the beginning. Today the
whole house is utilizing “smart” technologies to reduce energy consumption, automate mundane
maintenance activities and optimize use cases for everyday appliances, HVAC systems and whole house
lighting control systems. The inter-connectivity of the modern home will result in increased demands for
more bandwidth, stable connections and affordable prices.
Independent research conducted by Frost & Sullivan indicates total market penetration of so called “double
play” services from a single provider is significant in the United States. It is estimated that nearly 47.7%
percent of households have purchased at least two services from a single service provider. The survey also
indicates 0.9% subscribers have opted for a bundle of four services.

32

Traditional cable television operators, CLECs and other communications service providers began
offering “bundled” services as early as 2007. Early adopters saw an immediate benefit. Early “bundlers”
experienced difficulties in hardware compatibility as well as intermittent outages and “spotty” service levels.
Improvements in technology during the last seven years have resulted in better services and the word is
spreading. Some analysts predict a 60% - 80% increase in adoption by 2014.
Year

Household Bundling 2 Services



2003

26.1%

6.1%

0.2%

2004

40.2%

8.7%

0.4%

2005

43.9%

9.9%

0.7%

2006

47.7%

11.1%

0.9%

2007

52.9%

13.7%

1.3%

2008

58.0%

17.2%

2.1%

2009

63.2%

22.2%

3.5%

2010

68.1%

27.4%

5.8%

2011

72.8%

32.6%

9.2%

2012

71.1%

37.7%

13.7%

2013

81.0%

43.0%

16.9%

Frost & Sullivan predicts the proportion of households subscribing to bundled services with at least two
services will reach 81% by the end of 2013. The corresponding penetration rate for a three-service bundle is
projected to rise to 43% while four-service bundling will be adopted by 16.9% of households by the end of
2013.


33

Residential Bundled Services Market: Breakdown of Bundling Revenue
“Double-Play”, “Triple-Play” and “Quad-Play” Subscriber Revenue (U.S.), 2003-2013
Year

Double-Play Rev. ($Billions)

Triple-Play Rev. ($Billions)

Quad-Play Rev. ($Billions)

2003

16.46

7.36

.33

2004

26.61

10.65

.68

2005

29.43

12.25

1.15

2006

32.49

13.93

1.65

2007

35.50

17.50

2.47

2008

37.58

23.06

3.82

2009

39.05

28.83

6.09

2010

40.06

34.25

9.42

2011

40.43

38.05

14.06

2012

39.20

42.02

20.08

2013

36.17

46.59

26.63

Compound Annual Growth Rate (2006-2013): Double Play 1.5%; Triple Play: 18.8%; Quad-Play: 48.7%
Note: All figures are rounded; the base year is 2006. Source Frost & Sullivan

According to Frost & Sullivan, average revenues earned on duo-play services totaled $68.95, triple-play
services $103.43, and quad-play services $139.26 in 2006/07. Price of the services is expected to rise
annually in the range of 2% to 3% over the next 5-7 years as service providers package more service
features. ARPU from dual play subscribers is expected to reach $80.76, triple-play subscribers to $121.14
and quad-play subscribers to $167.96 by 2013 end. The following table from Frost and Sullivan depicts the
revenue pattern in each of the bundle plays.


34

Trends in Internet Broadband Adoption
All Adult Americans

Race/Ethnicity

Hispanic (English Speaking)

Black (Not Hispanic)
White (Not Hispanic)

65+

Age

50 - 64

30 - 49
18 - 29

College +

Education

Some College

High School Grad
Less than High
School

% of Broadband
at home


0%

20%

40%

35

60%

80%

Competition Brief
AT&T | Telecommunications Operator
AT&T is the largest communications company in the world, offering a complete suite of communication
services including wireless, high-speed Internet access, Wi-Fi, VoIP, local and long distance voice, IPTV,
satellite TV, directory publishing and advertising services.
The Company offers its service primarily to the residential and small and medium business enterprises. Post
merger with Bell South, the company has integrated different services it already markets as bundles. The
service bundles that AT&T actively promotes are based on its traditional land line phone service, DSL
broadband access and Echostar’s DISH satellite TV.
Verizon - Telecommunications Operator
Formed in 1983, Verizon is a leading telecommunications operator in the US offering wire line and wireless
services in more than 29 states. The Company’s wire line segment provides voice, Internet access, broadband
video and data, next generation Internet protocol (IP) network services, network access, and long distance
services to consumers, carriers, businesses, and government customers. The wireless segment provides
wireless voice and data products, and other value-added services. The Company also offers bundled services
that include broadband, wireless, video, and voice services.
Verizon has utilized bundling to get a foothold in the video services market and had 91.2 million subscribers
at the end of 2009.
Qwest - Telecommunications Operator
Qwest Communications provides data, Internet, video, and voice services in the United States and
internationally. The Company provides various data and Internet services, including private line, multiprotocol label switching, broadband, VoIP, and data integration services, as well as Web hosting and related
services
The company sells its products and services through its sales and call centers, Web site, telemarketing, retail
stores, and kiosks, as well as relationships and arrangements with third-party sales agents. It has strategic
partnerships with DirecTV and Verizon Wireless.
CenturyTel - Telecommunications Operator
Formed by the merger of CenturyTel and EMBARQ, CenturyLink offers high-quality voice, broadband
IPTV services and wireless data services in 33 states of the US. Serving both the consumer and businesses,
CenturyLink is positioned as the fourth largest local exchange telephone company in United States based on
access lines. The Company offers triple packs bundled services but has not rolled out quad pay service on a
full scale basis.
SureWest Communications - Telecommunications operator
SureWest Communication is a telecommunication provider. The Company, through its FTTP (Fiber to
the Premise) and copper networks, offers high bandwidth services such as IPTV and ultra-high speed Internet
access. Bundled services include phone, digital TV and broadband Internet. Management strongly
recommends triple play bundled packages and allows users to customize bundles.
Most recently, management deployed the company’s fixed wireless Internet assets to Yonder Media to focus
on core Broadband segment. The Company plans to launch advanced digital TV service on Microsoft’s
Mediaroom IP software platform in January 2010.
Comcast Cable - Multiple Service Operator
Comcast is a cable company engaged in developing, managing, and operating broadband cable networks.
The company acquired Fandango in 2007 and has recently entered into a joint venture with GE to increase
entertainment options for its customers. Comcast has the largest base of bundled services subscribers
among the U.S. cable MSOs. Management is strongly promoting the company triple bundled package, which
includes digital cable, broadband Internet and home phone service subscribers. The Company also offers a
quadruple package.

36

Time Warner Cable - Cable Television Operator
Time Warner Cable disposed off its cable systems to MI-Connection Communications systems in December
2007 for approximately $51 million and is regarded as one of the largest providers of cable TV, high-speed
Internet and Video-on-Demand (VOD) services in 27 states of the US.
Bundling is a key component of Time Warner Cable’s consumer market strategy. The Company differentiates
itself from competition by providing unique content from its sister concerns to its wireless subscribers.
Subscribers can access key features of the quad-play services such as remote launch of DVR and other video
applications, accessing programming guide and e-mail directly from their cell phones.
Cox Communications - Video service provider
Cox Communications offers cable TV, digital video, telephone and high-speed Internet services in 23 states.
The Company owns and operates cable systems. In December 2006, the company announced a roll out of
phone tools and applications that converges Cox’s telephone and Internet technologies. Cox also plans to
converge telephone and video services.
Bundling is a fundamental business strategy for Cox. The Company has been offering triple play bundle of
phone, Internet and cable television services for over a decade. Management’s long term growth strategy
involves leveraging the capacity and capability of its broadband network to deliver multiple services to
consumers and businesses while creating multiple revenue streams.
Charter Communications - Multiple Service Operator
Charter Communications is a cable operator, offering cable TV, high-speed Internet access, telephony
and video-on-demand services in 40 state. In July 2007, the Company launched an enhanced home page,
allowing customers to view entertainment snippets as well as complete programs from channels such as IFC,
SHOWTIME and MTV, via the Internet. Three months later, management announced the launch of highspeed Internet, digital cable and telephone services in over 700 Wal-Mart stores nationally.
Cablevision - Multiple Service Operator
Cablevision is among the leading bundled services providers in the U.S. The Company provides cable TV,
cable Internet, digital video and cable telephony services in the New York metropolitan area. In 2008, the
Company acquired 97% stake in Newsday Media Group and the Sundance Channel. These acquisitions will
strengthen Cablevision’s presence in both new geographies and existing customer base.


37

Company

Residential

AT&T

YES

Small and
Medium
Business
Clients

NO

Offers complete suite of
products including wireless,
high-speed Internet access,
Wi-Fi, VOIP, local and long
distance voice, IPTV, Dish
satellite TV

Double -$65.00 - $76.99
Triple - $94.94 - $99.99
Quad - $134.97

Cable Vision

YES

YES

NO

Digital home phone,
broadband, cable TV

NO

Century Link

YES

YES

YES

Fast Internet, unlimited
calling, digital TV, and
security monitoring, IPTV
services and wireless data
services in 33 states.

Double -$54.95
Triple -$74.95

Charter Comm.

YES

YES

NO

Digital home phone,
broadband, cable TV

Double -$69.95/mth
Triple- $99.98 / mth for 1 yr

Comcast

YES

YES

NO

Digital home phone,
broadband, cable TV

Double & Triple- $99/mth
to $159.99 for 1 yr

Qwest

YES

Small
Business

NO

Digital home phone,
broadband, cable TV

NO

Surewest
Comm.

YES

YES

YES

Offers local telephone,
long distance, Internet,
wireless, digital cable
television, directory and
commercial high-speed
data services

Triple play bundles$79 to $145 per mth
for 1 yr

Time Warner
Cable

YES

YES

NO

Digital home phone,
broadband, cable TV

Double - $69.99
Triple - $99.99

Verizon

YES

YES

NO

Offers services such as
satellite TV, digital voice,
wireless, IPTV, high-speed
internet access

Double - $64.99
Triple- $89.99 - $94.99
Quad - $129.99 - $169.99

Cox Comm.

-

-

-

Digital home phone,
broadband, cable TV

Triple - $109.95


Business

Wholesale

38

Services

Bundled Cost/Mo.

Market Trends
The number of digital content sources in U.S. households are multiplying with the rapid penetration of
several consumer electronic (CE) including, portable media players, digital cameras, game consoles, smart
phones, media adapters, PCs, flat-screen TVs, and DVRs.
The average U.S. household now owns 26 consumer electronic (CE) products. It is estimated that the
average teen household owns 35 non-discreet CE products while households with six or more members, on
average, own approximately 42 non-discreet CE products. The average single household owns 14 CE
products.
The number of bandwidth consuming devices per household is growing rapidly due to changing consumer
media consumption habits. The change is being catalyzed by new trends in passive viewing and recording,
Internet video and on-demand viewing, multitasking with more than one device, and the growing availability
of high-definition programming. This increase in video consumption is driving the increase in bandwidth
usage and more than 44% of U.S. households are defined as high-bandwidth users. It was estimated that by
2011, these households would require a minimum 40 Mbps of bandwidth, with many needing as much as 80
Mbps. Since 2011, these numbers have drastically increased, with some areas of the US reporting over 40%
growth in the past two years alone.

Forecast: USA HH Technology Adoption 2006-2011
140

Households (Millions)

120
100
80
60
40
20
0

2005

2006

2007

2008

2009

Total USA Households

HDTV

Camera Phones

2012

DVR

Internet

2011

Broadband

Mobile Phones

2010

Video Game Console

Source: Forrester Research 2006

Changes in data demand growth, and the rapid pace of technology adoption is bringing about a paradigm
shift in the telecommunications and cable industries. The telecommunication industry was a $1.2 trillion
market in 2009. The International Telecommunication Union (ITU) estimates 158.4 million landlines at the end
of 2008, down from 182.9 million in 2003. This is a negative 3.5% annual growth rate which has increased
over the past 3 years.

39

Trends in Home Internet Access: Broadband v. Dial Up
70%
60%
50%
40%
30%
20%
10%
0%
JUN
2001

JUN
2002

JUN
2003

Broadband at Home

JUN
2004

JUN
2005

JUN
2006

JUN
2007

JUN
2008

JUN
2009

JUN
2010

JUN
2011

JUN
2012

Dial Up

Source: http://pewresearch.org/pubs/1254/home-broadband-adoption-2009

The major factors catalyzing the change include; budgetary pressures and slower growth due to the global
recession; a shift in residential and personal use from wired services to wireless; intense competition between
cable and wired services providers; and rapid advances in Internet and wireless technologies, including wider
availability of 3G services.
Blurring the traditional product line, cable companies now offer local exchange service and high-speed
Internet access while telecoms also provide TV via IP (Internet protocol) services. The merging lines have
brought about duplication of services and the industries are now deeply intertwined, providing
entertainment of all types. Large incumbent telephone companies are experiencing lower demand for only
voice services due to IP substitution and competition from wireless service providers. At the same time, cable
operators have reached saturation in their service market as the consumers are now looking for wider
options.
The changing dynamics in the ongoing competition between cable and telecom providers, is giving way to
bundled services. According to eMarketer, the US broadband household subscribers are estimated to grow
13.4% between 2010 and 2015, a good percentage of which are likely to be subscribing to a bundle of
services including voice-over Internet protocol (VoIP) and Internet protocol TV (IPTV).


40

Residential IPTV and VoIP Subscribers and Broadband Households in the US and Worldwide
2007 & 2012 (Millions)
2007

2013

IPTV

1.2

12.7

VoIP

17.5

33.8

Broadband

66.4

94.3

IPTV

12.5

61.1

VoIP

69.6

196.3

312.5

533.6

US

Worldwide

Broadband

Note: IPTV includes all subscribers to an IPTV service whether they pay additional fees for it or not; VoIP includes paid
subscribers only; broadband includes ADSL, cable, satellite, fixed wireless, fiber, powerline, WiMAX and emerging
broadband technologies accessed at home. Source: eMarketer, April 2008


41

Elevate Certifiable Geniuses | Business Plan

Elevate Certifiable Geniuses | Business Plan

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Elevate Certifiable Geniuses | Business Plan

Similar to Elevate Certifiable Geniuses | Business Plan (20)

More from ElevateCertifiableGeniuses

More from ElevateCertifiableGeniuses (7)

Recently uploaded

Recently uploaded (20)

Elevate Certifiable Geniuses | Business Plan