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Previous Quarter Report
(Jul- Sep 2008)

Performance | Plans

Performance:

We have finally managed to step into WiMax domain. Interactive Communications (www.iacgrp.com) posed full confidence in T-channels by awarding a project of WiMax network deployment in three cities (Gujranwala, Sargodha and Okara) including both the base-stations and terminals. This milestone is of dual significance to us. It has endorsed T-channels conviction that wireless bridge paradigm would evolve into WiMax as a connectivity vehicle. It has also paved way for diversification and enrichment of T-channels team profile. In the wake of current economic downturn and the local Telecom industry coming off age at the same time, the need of service outsourcing is more imminent than it was ever before. With DVB VSATs, Wireless Bridges and WiMax experience under its belt, T-channels is fully ready to share the fixed costs of the Network Operators, Data Operators in particular.

 

In the last quarter, T-channels could not convince Mobilink, that WiMax driven data network was somewhat different from GSM network and so were the target market characteristics. The profile of an outsourcing partner had therefore to be accordingly different. We have held ourselves back till they are ready to review their approach based on their findings on pilot project in Karachi. Whats promising in Karachi is another account, however: Cybernet. They have entrusted T-channels with representing their team for VSAT terminal pointing and peaking job for a new satellite they have recently subscribed to. Through this project we have demonstrated how seamlessly we work with team members of network operators.

 

T-channels has taken its Project Office in Karachi to an advanced level. Together with AAA Technologies, we have launched promotion of UBNT’s WiFi products to be coupled with WiMax based connectivity solutions. Not only that, this could be a very lost cost last-mile solution for both all-wireless and fiber based designs. AMZ Technologies, Wateen Telecom and Acsys (Access Group) have already field-tested and deployed our value-added solution.

 

T-channels team has grown in size for obvious reasons. We are training the ‘boys’ on new technologies. In order to inculcate a cross-cultural attribute, the ‘boys’ from upcountry are serving in the South and similarly those from Karachi are being trained on networks in the Punjab. This is not only building redundancies in the team, but also bringing harmony in the teams from different cultural and educational backgrounds. We have recently revised our incentive plan for the employees. Instead of ‘piece-rate’ as a reward, we have set Gross Profit Margin as basis for rewards on project basis. This scheme is supposed to improve the sense of cost and thereby the profit margins.

 

Our cash flows are positive. Short-term small debt needs are few and far between. It gives us immense pleasure to report for the prospective investors that we are considering to make an upward revision in expected rate of return (to be adjusted on actual profit/loss basis upon conclusion of the project). This is because our net margins have substantially improved since we diversified into services early this year.

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