As it turns out, CPTG (and many others) made some fairly prophetic projections in 2001 (CPTG can’t claim to have made them without help). In retrospect, it was clear that any ‘gold rush’ trend, which created a huge boom cycle, would at some point end with a bust cycle. And so it happened. Now, five years later the industry has, in large part, moved on, digested the bankruptcies and stranded capital expenditures and completed the challenges of building/creating the new infrastructure required to run new applications. This has created yet another set of new realities for the telecom horizon. CPTG sees four current major trends:

• Industry Consolidation – from the 1984 MFJ (Modified Final Judgment) which created an explosion of competition, technology and entities serving the US Telecom market the industry seems to be reversing itself. As a result, a number of really interesting business combinations have occurred. To name a few: (1) AT&T now consists of AT&T, Pacific Telesis, Southwestern Bell, Ameritech, SNET (and soon to be Bell South); Qwest now consists of US West and Qwest; Verizon now consists of Bell Atlantic, Nynex, GTE, MCI, Worldcom and UUNet; Sprint merged with Nextel and discarded its local division, & Level 3 has acquired Wiltel, 360 and many others. CPTG expects this trend to continue.

• Wireless – The adoption of wireless services will continue and the wireless service itself will consist of more offerings. Already we have seen the advent of high speed data to mobile handsets as well as tv-to-mobile handset technologies. We also expect that more landline customers will swap out there landline service and go mobile thereby fulfilling the local-to-wireless number portability. Wireless seems to have received the endorsement of Sprint-Nextel and Alltel who have shed their landline businesses to go mobile.

• Broadband – As multi-media (music, photo, video on-demand, pod-casts, web-casts, digital-video recorder, telecommuting, video conferencing, home networking, web-2) applications continue to gain acceptance and adoption, CPTG predicts that broadband demand will continue to grow and last mile broadband suppliers (e.g. cable/cable-modem, telecom/DSL & satellite/DTH-IA) will see continued demand.

• VoIP Migration – While VoIP has been used by underlying carriers for many years, a full scale migration to VoIP is in full swing. This can be observed through the emergence of hosted voice application (where PBX functionality is stored on the network) as well a slew of new IP-based PBX systems where traditional TDM (time division multiplexing) is replaced by IP (internet protocol) systems, which at times, requires new investment in new IP phones systems and phones.

To survive in this marketplace, CPTG will need to migrate its business model to address the trends noted above. As a small business, CPTG will not be able to address all of the current trends. However, CPTG will focus on convergence (i.e. the ability to deliver local dial tone, long distance and internet over one, as opposed to three line(s).

Markets:

CPTG focuses on primarily on five geographic markets: (1) Arizona, (2) Nevada, (3) Oregon, (4) Washington, & (5) California. CPTG believes these markets offer several attractive features:

• High growth areas
• High concentration of business growth
• High concentration of large cities
• Attractive Climate
• Gateway(s) to the Pacific, Asia, Canada & Mexico
• Confluence of domestic migration from East to Western Locations

CPTG has prepared a brief business snapshot of these areas:

Conclusion

CPTG hopes to become your telecom service provider. CPTG has the right product set, right prices, and right process to serve your business needs. For more information, please contact CPTG.