Tuesday, July 1, 2008

Central America Voice Needs

The President of USNT is in Central America since last week, looking to formalize a presence there. The Company affiliate has several programmmers/engineers working there at this time. The shipment of equipment that was ordered came in, but it was not what was ordered, so that was a disappointment, and now it will take time to get the right equipment.

The voice traffic sent by the Company affiliates goes through the data center in Guatemala City, where we expect to also co-locate our own equipment. This co-location should provide even higher call quality.

The good news is that there is an insatiable demand for voice calls to Mexico and Central America - the company affiliates have been sending calls to El Salvador and Guatemala, as well as to Mexico. The cost of calls to these countries ranges as high as $0.10 per minute, which is as much as ten times the cost of a call within the USA. Because of that pricing, we are expecting that there will be more profit per minute than in USA minutes that are priced as low as $0.007 (7-tenths of a cent).

Executives related to the Company have had years of experience in Central America, which is very important because there are so many differences between how business is conducted in the USA compared to foreign countries.