THE COMPANY

GTS Pacific Pty Ltd is a private company incorporated in Australia in July 2000 to develop proprietary IP based communication and collaboration software applications for the enterprise, consumer and mobile markets. The company has been funded to date by private placement capital amounting to $ AUD 2,900,000.

GTS Pacific Pty Ltd head office and data centre is currently located on the Gold Coast, Queensland, Australia.

GTS Pacific Pty Ltd has commenced process for a venture capital round of $US 2.5 million in the United States with the appointment of its capital markets advisor and senior executive to key positions to assist in due diligence, business planning, technology and market partner appointment, networking and early direct sales.

GTS Pacific Pty Ltd will restructure upon the successful completion of venture capital funding and relocate its corporate headquarters and intellectual property to the United States. The current development lab and data centre will remain in Australia as a subsidiary of the ultimate holding company.

MARKET OPPORTUNITY:

While voice now accounts for more than 95 percent of wireless carriers' revenues, analysts' state, new applications designed to take advantage of 2.5G and 3G networks will be critical to future profits. Corporate users and consumers are looking for tools that will bring them valuable applications and show immediate benefits. For Operators, the key is to identify services that require a moderate investment on their part, have short payback periods, and can improve the bottom line without cannibalizing other products-of course, taking into account a company's special skills and the level of competition.

Next Generation Applications should have the potential to provide needed benefits for Operators, including increasing customer stickiness, reducing churn, driving additional revenue from the existing subscriber base, and attracting new subscribers through more compelling offerings.

In the USA, wireless carriers are searching for ways to entice consumers to new data-intensive services as rates for cellular voice calls drop precipitously. These data-intensive wireless applications are forecast to create $20 billion in total revenue by 2006, according to Gartner Dataquest.

RICH MEDIA COMMUNICATIONS = MORE VOICE AND DATA TRAFFIC

Migrating 2.5G Voice to 3G Multi-media Services or offering broadband content is widely accepted by Operators (Wireless Carriers and Internet Services Providers) as the necessary step in order to revive financial fortunes.

Operators face many obstacles to success as they are dealing with relatively nascent markets. Most carriers have made advances in assembling the necessary pieces of their next-generation wireless data strategies, upgrading networks, seeding the market with new handsets, and creating/partnering for better content. ISPs are starting to convert their customer base from dial-up to broadband.

Historically, Europe and Asia have an edge in Wireless with a uniformed technology while North America has a head start with a huge Internet population. As a result, high-speed data services adoption is driven by a different set of dynamics in each region. Although fast data revenue growth is initially expected in the USA from the Internet and in Europe/Asia from wireless, a convergence toward faster wireless growth is anticipated for all three regions when 3G networks are finally available in 2006. While initial results show that end-user adoption and perceptions of value-added services were under expectations, adoption rate showed signs of acceleration in the second part of 2002. Challenges remain in using advanced services as a means of improving Operators' bottom lines.

As Operators continue to extend coverage on next-generation networks, introduce richer data services or make broadband access user-friendlier, they must focus more than ever on crafting and marketing targeted packages. And, while the "value gap" associated with value-added services may have begun to close, it is still significant and shows that carriers must not only evangelize wireless data/Internet services, but also provide applications that truly add value. In addressing this problem, the inevitable questions arise: Can the Operators bridge the value gap as it relates to value-added services, and are they on the right path with their next-generation offerings?

Wireless carriers are reorganizing to take advantage of the enterprise opportunity and are initially aiming new data service rollouts (GPRS- and 1xRTT-based) primarily at enterprise users before deploying 3G infrastructure.

In the USA, Business customers currently represent 36% (54.5 million) of total wireless users, approximately 20% of whom are part of a corporate-sponsored account. By 2006, the Yankee Group estimates that while the percentage of business users will drop to 29% (59.8 million) of the total wireless customer base, 46% of business users will purchase their service as part of a centrally managed or corporate-sponsored account. This trend represents an opportunity for carriers to enhance their relationships with enterprises as they move to implement wireless data solutions.

Selling data into the enterprise is however, a complex task; carriers cannot hope to merely extend data services to already existing corporate customers. For one, corporate-sponsored and centrally managed corporate accounts represent only a small part of the total wireless voice customer base. Existing voice relationships can lead to data opportunities; but by penetrating the enterprise with wireless data solutions, carriers can also strengthen and expand voice accounts.

Carriers are attempting to leverage their legacy wireless voice relationships with corporate customers, expanding their enterprise sales strategies, and partnering for and packaging early enterprise wireless data services. As they seek to increase revenues from wireless data services sold to enterprises, carriers will need to integrate certain functionalities and partner for other capabilities.

This is the opportunity GTS Pacific is well positioned to capitalize on for 2.5G and the transition through to 3G and beyond.

Contact

Global Headquarters

GTS Pacific Pty Limited
Level 15, Corporate Centre One,
Bundall Road. Bundall. Q. 4217
Australia


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