World Surveillance Group Inc (fka WSGI)

[mide]

Sometimes, no all the time, it is often far better to be a good listener than a verbose responder. That also applies to message boards, where the "hearing and listening" is in the reading. There is a very old saw in business parlance which goes, "He who speaks first loses."

It is also very good for one's own mindset, to take a step back from time to time, "hear" nothing, do your own soul searching, decide whether to bother going at it again, or retire. Then start listening again, before opening mouth and inserting keyboard.

I ain't dead yet and to me that is retiring...so I "heard", contacted, reached out, took some days at the beach, analyzed and have a post for your consideration...that is not debatable.

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This last PR announcing a test of a new GTEM VOIP product through Metro-tel, a series of independently owned distributors part of the nation-wide Metro-Pcs network of independent distributors was interesting. The attractiveness of the CallAnyWhere product is reasonably priced and extraordinarily attractive to the consumer. That consumer is most likely to be an immigrant or someone with bad credit who calls a lot out of country or who does not plain like fixed contracts with other cell providers and does a ton of calling.

The profitability of this venture and work-arounds to reduce net profit, have been discussed here by some very savvy telecom peoples, that I will not repeat. As I am in Miami, I have first hand knowledge of the power in my market of Metro-PCS, their typical user and sophistication. I doubt from what I know, that the work-around is an issue...and thus it should be profitable if it is what it is.

My only initial curiosity was why Texas and Michigan? Well it turns out two years ago Metro-tel was set up by 3 current employees of GTEM and 5 outside investors, Jon Leinwand is obviously one of those investors. (None of this is material disclosure...btw.) The 3 GTEM employees are passive investors, the 5 outsiders are the active managers. There are 12 stores owned by this group and they are in Texas and Michigan. (I kind of view this as taking in interest in a new tavern opening if you were a key employee of Stoli Vodka Corp.)

Recently, Metro_Pcs was approached by another Telecom with a service add on VOIP service very similar to what we were PR'd about. It was run down the flag pole from corp to the independents for an opine. The active investors contacted GTEM passive guys and said...Can you match or better it?

And the passives went to the BOD and said, we can do this and better it, can we go for it? BOD...said yes! And they did it.
Actives went back to MetroPcs and said...hang on. We have a better widget...let us test it and prove it. Apparently, Corp. Metro is in waiting mode on the test outcome.

In the meantime, the net profit distribution is equal to GTEM and Metro-tel, if any. Out of each $19.99 for the service I have no profit projections..and as it is a test..I doubt many. Loses are absorbed by Metro-tel...btw.

However, and this is a huge one...all the traffic routing for all calls made through CallAnyWhere get sent through our Centerline Switch and get billed as a charge against the gross $19.99.

So regardless,and if this is successful, and the same proforma contract gets adopted by MetroPcs nationwide, GTEM shareholders get 50% of all net profits on CallAnyWhere, PLUS all revenues streaming through Centerline for all the routed calls.


That is a very good deal potentially.

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My reaction to this news was initially tepid, admittedly. Now that I have a clearer picture, as I hope you now have, it is a bit brighter. Thinking outside this box, I am even more impressed with current management's desire to continue to encourage expansion of potential technical resources and deployment of those resources, given the apparent overhang of cost, revenue and other restraints.

It does not appear to me that we are in a "turtle" mode, or a "fire sale" mode, but in a whole new growth mode. It is beginning to me to seem that we have a fresh start "Kick Butt" mode in drive. It may be only 12 stores, and we are still awaiting news on other fronts, but why develop a new product if you have no future based on your past efforts?

My guess is the new team in Dodge thinks we have the goods Huff promised all along...otherwise...why bother?

M

Over, but not out.

PS..to RWEHAPI2003

This post of yours got kicked all the way up to the A team at VOIP with much thanks.

http://www.investorshub.com/boards/read_msg.asp?message_id=16290686