Mr. Locklin: CIDCO was founded in 1988. Our founding purpose of the company was to work with telephone operating companies, domestically and internationally, to provide residential equipment that they would distribute to their residential base customers. The equipment would enhance new network services that the telephone companies were introducing to their customer base. This type of equipment would help the telephone companies increase penetration rates of services like Caller ID, Call Waiting, Call Forwarding and Voicemail. We have been successful at that strategy. The telephone companies embraced our products and our concepts, and together we've done a very good job of taking penetration rates of a variety of network services from fairly low numbers up to over 50% penetration in certain areas with products like Caller ID, particularly in the Southwestern Bell territory.
TWST: What is your product array at the moment?
Mr. Locklin: Today, we offer three types of hardware products and three
types of services in our Telco business. In our hardware product line we
offer what we call adjuncts, which are products that do not have a
handset on them, but they provide information to users. Typically, it's
Caller ID information or Voicemail access capability. Also, we have a
line of corded phones that support a variety of network services, and we
have a line of cordless phones that also support a variety of network
services. We offer three distinct hardware categories in our Telco
business. In addition, we support the telephone operating companies not
only with the hardware, but with fulfillment services where we actually
ship products directly to end users. That's a fairly large activity for
us. In addition, we provide promotional services, where we'll actually
contact end users on behalf of the telephone operating companies and
sell these end users network service and the associated equipment. We
also provide Call Center services for after-sales support. So, we've got
not only hardware products, but we also have services that we offer to
the telephone operating companies.
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