| Electronic DistributionHow Electronic | | | | employees. Retail employess often feel |
| Distribution WorksThe Problems of | | | | underpaid and rationalize theft as a way to |
| Distributing Prepaid Services with Hard | | | | make up for what they're owed. As prepaid |
| (Scratch) CardsIntroductionOne of the most | | | | wireless airtime cards often range in |
| significant developments in the prepaid | | | | denominations from $10 to $150, employees can |
| telecom industry in the last few years has | | | | easily conceal thousands of dollars of |
| been the emergence of electronic distribution | | | | product in their pockets or purses.Cards are |
| technologies, such as Prepaid Wireless Direct | | | | also attractive because they can be easily |
| point-of-sale activaton (POSA) will | | | | converted to cash on the street by offering |
| completely reconstruct the way in which | | | | them for sale at a discount of their face |
| prepaid services are sold.How Electronic | | | | value. Because they're close cash |
| Distribution WorksPrepaid Wireless Direct | | | | equivalents, prepaid wireless cards have |
| electronic distribution systems enable any | | | | become tantamount to an underground currency |
| prepaid sevice to electronically transmit | | | | in some places including Europe. Because of |
| their services to virtually any retail | | | | the proliferation of theft reduction is the |
| location. Prepaid Wireless Direct provides | | | | number one investment priority among |
| an integrated POSA solution comprised of | | | | convenience store executives.Additionally, |
| flexible and compact point-of-sale terminal | | | | each of the supply chain participants lacks |
| equipment, proprietary software, | | | | efficient inventory controls and reporting |
| transactional communications, protocols, and | | | | while battling fraud. Because of the |
| professional services to assist retailers | | | | difficulties they face, and retailers that |
| with implementation.Once in the retail | | | | sell traditional hard cards are in dire need |
| environment, consumers simply select a | | | | of cost-effective distribution |
| product from point-of sale signage or | | | | solutions.Electronic Distribution |
| displays and make the approprate payment to | | | | SolutionsPrepaid Wireless Direct products and |
| the clerk who then inserts a wallet-sized | | | | services solve the distrbution problems of |
| thermal card into the POSA terminal. After | | | | retailers that sell prepaid wireless (mobile) |
| pushing a few key corresponding to the | | | | and other prepaid services.Retailer. |
| desired product, terminal prints a prepaid | | | | Retailers are increasingly demanding |
| PIN along with usage instruction on the card. | | | | electronic delivery for the significant |
| Prepaid Wireless Direct also supports | | | | benefits they derive.By delivering prepaid |
| PIN-less delivery whereby the terminal makes | | | | products electronically, on demand, with |
| a real-time connection service provider. A | | | | point-of-sale activation(POSA) techniques, |
| credit is instantly issued to the customer's | | | | Prepaid Wireless Direct essentially allows |
| account. Within moments of purchase, | | | | any retailer to sell prepaid wireless or |
| customers can use services.The types of | | | | other prepaid service without carrying any |
| retail environments that are beginning to | | | | inventory. This eliminates prepaid inventory |
| switch to electronic delivery include | | | | costs that acted as enormous cash barriers, |
| wireless shops, supermarkets, conveience | | | | prohibiting many retailers from selling |
| stores, check cashers, food marts, university | | | | prepaid wireless or other prepaid services. |
| shops, electronics stores, hotels and many | | | | What once tied up thousands of dollars in |
| more.The Problems of Distributing Prepaid | | | | inventory, now requires no up front cash from |
| Services with Hard (Scratch) CardsPrepaid | | | | retailers. Now virtually any retailer not |
| Wireless Direct has developed electronic | | | | only can afford to participate in selling |
| distribution services to address the many | | | | prepaid services, but also can expand their |
| problems of distributing prepaid mobile and | | | | product portfolios to include phone cards, |
| other prepaid services through hard cards. | | | | wireless, dail tone, credit cards, internet |
| Hard cards are also known as scratch cards | | | | and more. In addition, they can also afford |
| because the customer scratches a panel on the | | | | to represent all of the popular prepaid |
| back of the card to reveal a PIN or other | | | | wireless service providers in their |
| secret code.The current and traditional | | | | areas.Also, because products are |
| distribution methodology of most prepaid | | | | automatically replenished at POSA terminals |
| services involves the prepaid services | | | | electronically in PIN or real-time formats, |
| involves the provider printing scratch cards, | | | | retailer never run out of inventory. With |
| warehousing them and fulfilling orders to | | | | Prepaid Wireless Direct POSA solution, |
| distributors. The distributors purchase | | | | retailers avoid the heavy costs of out of |
| large quantities for providers, warehouse | | | | stocks and resultant customer |
| them and fulfill retail orders. And | | | | dissatisfaction.Once installed in a retail |
| retailers purchase the cards from | | | | location, the POSA terminal virtually |
| distributors, manage the inventory and sell | | | | eliminates theft by retail customers and |
| the cards to consumers.Each participant in | | | | employess. Because only inactive products |
| the distribution chain encounters problems | | | | are on display, retail customers can no |
| with scratch cards.Retailer Problems. Under | | | | longer steal valuable airtime. And because |
| today's traditional hard card distribution | | | | all retail employees are assigned unique |
| format, most retailers struggle on several | | | | passwords required to accesss the POSA |
| fronts to offer prepaid productsRetailer have | | | | terminal, the system creates an audit trail |
| a difficult time carrying the inventory costs | | | | that details all sales activity by date, |
| of prepaid services. The recent growth and | | | | time, shift and employee. This audit trail |
| popularity of prepaid wireless intensifies | | | | provides a monitoring system that virtually |
| the problem. With prepiad mobile, airtime | | | | eliminates employee theft. With the POSA |
| denominations are much more expensive the | | | | system, retailer no longer need to count and |
| phone cards that most retailers are familiar | | | | reconcile scratch card inventory amounts at |
| with. It's common for one prepaid wireless | | | | the beginning of every shift.POSA also |
| provider to offer 5 or more different airtime | | | | reduces shelf space requirements and |
| denominations that range in price form $20 to | | | | simplifies a retailers job by consolidating |
| $150 each. To make things worse, prepaid | | | | all prepaid products into one convenient POSA |
| wireless airtime is carrier specific, meaning | | | | platform. POSA delivers operating |
| that Verizon prepaid wireless customers | | | | flexibility to the retail marketplace that |
| cannot top up (recharge or replenish) their | | | | traditional point of sale products fail to |
| accounts with AT&T, Cingular or any other | | | | provide.Retailers also have 24/7 online |
| providers's airtime, and vice versa. This | | | | access to reports that show real-time sales |
| makes it critical for retailers to carry | | | | activity by each of their locations. |
| airtime for all of the popular national and | | | | Retailers can also print real-time sales |
| regional prepaid wireless carriers or | | | | report directly for their POSA terminals. |
| operators in their area, something that | | | | Reports can drill down to sales activity at |
| retailers didn't have to worry about with | | | | individual retail outlets by product, clerk, |
| phone cards.Today there is an average of six | | | | day, and time. Reports come standard but may |
| major carriers or operators offering prepaid | | | | be customized to match the retailers unique |
| wireless in each of the top 20 U.S. markets. | | | | information needs. Retailers use sales |
| Trying to inventory product for all six could | | | | activity reports can also highlight sudden |
| mean that prepaid wireless alone could | | | | changes in sales at a particular location. |
| account for as much as 25 percent of a | | | | Subsequent investigation often reveals a |
| conveience stores total in-store inventory | | | | simple solution to boosting sales such as |
| costs. Many retailers simple cannot afford | | | | replacement of signage that has been taken |
| the cash outlay required to successfully sell | | | | down by a window washer. Timely awareness of |
| prepaid wireless services.Retailer trying to | | | | problems and simple remedies often make a |
| minimize inventory costs often create | | | | significant difference to the amount of sales |
| out-of-stock problems. In general, stock | | | | at retail.Prepaid Wireless Direct is proud to |
| outages cost the average retailer 6% of its | | | | be leading the way in the electronic |
| sales, resulting in loss of billions of | | | | distribution of prepaid services through |
| dollars every year and high customer | | | | retail environment. By delivering unique, |
| dissatisfaction.To make thing worse, today's | | | | industry-first features and benefits, while |
| airtime hard cards, also know as vouchers, | | | | supporting a growing list of platforms, |
| scratch cards, replenishment cards, recharge | | | | methods, suppliers, and products. Prepaid |
| cards, and hanging cards, increase the | | | | Wireless Direct is poised to lead the |
| likelihood of fraud. The biggest problem | | | | electronic distribution movement into the |
| seems to be at the point of sale where easily | | | | future. In addition to its current suite of |
| concealed, high-value airtime cards can be | | | | products. Prepaid Wireless Direct intends to |
| the target of both retail customers and | | | | introduce many more electronic product |
| employees alike. To prevent comsumer theft, | | | | delivery solutions as it continues to |
| retailers often put cards under lock and key | | | | leverage the leading technologies to create |
| but still suffer losses due to employee | | | | cutting-edge, customized products for |
| pilferage. In the conveience store industry, | | | | emerging customer segments.Retail Licensing |
| it is believed that as much as 80 percent of | | | | Provider of Bill Payment & Cellular Providers |
| the store's shrinkage is attributable to | | | | Technologies. |