The AmTel Story

ATN, Inc. (AmTel) is a privately held corporation, established in the State of Georgia with an initial issue of 1000 shares of closely held stock. The company was founded in November of 1992 with a stockholder loan and a commitment to establish financial self-sufficiency within the first two years of operation. The company's first pay phone was installed in the fall of 1992.

The goal of operational self-sufficiency for ATN was realized within the first full year of operation. All present company expansion is funded from current cash flows and the original stockholder loan is being retired at an accelerated rate.

ATN (AmTel) is licensed in Alabama, Florida, Georgia, South Carolina, North Carolina, Tennessee, Virginia and a number of other states as a provider of public pay phones and inmate telephone services. Confinement system services cover both adult and juvenile detention facilities.

The company has reached its current level of success by offering the most technologically advanced equipment available in the telecommunications market designed to meet the specific needs of each customer's facility.

ATN has grown from one employee in 1992 to a present full time staff of eighteen. This small cadre of employees handle all installations, trouble shooting and repairs, office management, and new sales. The ATN employee commitment to providing a higher standard of customer service clearly differentiates the company from its competitors.

OPERATION AND SERVICE

ATN offers telephone services in two distinct market areas. The opportunity to provide services as an independent pay phone provider (IPP), was created by the 1984 deregulation of the telecommunications industry. AmTel has established a core business as an IPP, servicing both public and private locations. The second principle market serviced by AmTel is providing inmate telephone services to confinement facilities.

All ATN pay phones are "smart phones", monitored and controlled from our business office. Our in-house computers track potential service problems, daily and monthly coin totals, and maintain complete call detail records. All pay phone reports are reviewed daily. It is our goal to have all service problems corrected within twenty-four hours. All AmTel telecommunications equipment is maintained in a clean, well functioning order. This provides the greatest degree of customer satisfaction and minimized vandalism.

AmTel has established billing rates for all pay phone traffic at or below the tariffed local rates for the local exchange carriers, and at or below the industry standard AT&T published long distance rates.

Our inmate phone systems utilize state-of-the art micro-processor based "smart phones", specifically configured to provide the high level of management control required by the confinement environment. Our inmate telephones allow for collect calls only.

The inmate systems are also programmed and controlled remotely from our business office. Call records are downloaded daily from each site. These call records are then reviewed as part of our quality assurance program.

ATN has developed industry unique computer software and procedures, for control and management of collect call inmate traffic. Raw data records are downloaded from individual site phone controllers. These raw records are processed into an industry standard billing format, screened for all known un-billable phone numbers, and reviewed for abusive or fraudulent dialing patterns. Once each week, billing records are bundled and transmitted to a billing house for distribution to the major local exchange carriers (LECs) to be included in end user telephone bills. AmTel also processes and bills directly to the end user, for calls made from our facilities into neighboring "un-billable" exchanges.

ATN offers pre-paid discount calling plans for those customers otherwise unable to receive "collect" calls, and those desiring to reduce their telephone costs. No other provider of confinement telephone services offers such comprehensive calling options to their customers.

All phone systems are regularly reviewed for proper function and potential problem identification. All AmTel telephone equipment is serviced by our own technical professionals.

Industry competitive commissions are paid monthly to each independent pay phone location and to each confinement facility serviced by AmTel.

DEVELOPMENT AND GROWTH

The market for independent pay phone providers was created by the 1984 deregulation of the telecommunications industry. Early entries into the IPP market overcame many obstacles to competition in an industry dominated and controlled by the large local exchange carriers. In spite of these obstacles, and in the face of less than tolerant state public service commissions, the independents, in the last ten years, have captured a sizable percentage of an industry once the sole purview of the major carriers.

ATN entered the independent pay phone market with its first installation in November of 1992. Our first inmate system was installed in March of 1993, in the Camden County Jail located in Woodbine, Georgia. This initial experience with inmate traffic encouraged expansion of the confinement service program.

In the past five years, AmTel has attained a very respectable growth. The company is continuing to grow as the income from each new facility comes on line. Additionally, AmTel has acquired an interest in a fast growing Internet Service Provider, and is developing opportunities in this new telecommunications industry.

The telecommunications Bill enacted by the U.S. congress in 1996, promises to have an even greater impact on the pay phone market. This bill eliminates the ability of the larger carriers to compete unfairly in the market by cross subsidizing their pay phone operations from regulated services such as business and residential telephones.

This 1996 bill will open enormous opportunity for creative independent providers. The FCC and state public service commissions are presently modifying regulations to provided for a more level playing field and competitive environment for all telecommunications.

PROFORMA EXPECTATIONS

AmTel has been very successful in creating new markets such as the Juvenile Detention Centers. Regulations governing telecommunications in all states are undergoing significant changes. These major regulatory changes are a direct result of the Telecommunications Bill of 1996.

In the past decade, the major local exchange and long distance carriers have had difficulty adjusting to competition provided by the deregulation of 1984. Most LEC's are slow to react to changes in the market place. The Telecommunications Bill of 1996 provides for even more significant changes will provide even greater opportunities for expansion into markets previously reserved for the local exchange carriers.

AmTel is committed to the identification of new opportunities and the creation of innovative proposals for these telecommunications market areas.

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