Etph Inc.

Competition from existing players:

Paging and mobile telephone service provider would be the immediate competition. Major companies in Cleveland market are Ohio bell telephone company and an RCC, Cleveland mobile telephone.

Name of company % market share Number of units

Ohio bell telephone company 57.4 483

Cleveland Mobile telephone 25.8 217

Others(five companies) 17 142

Total 842

Pager market

Name of the company % market share Number of units

Ohio bell telephone company 32.2 3,455

Cleveland Mobile telephone 18.0 1932

Digital paging system 16.4 1760

Others (five companies) 3586

Total 10,733

Estimated expected demand for ETPH units for first year is 2,215 units, which is considerably higher than the existing base of mobile service subscriber.

The average cost for renting a mobile service is 75 $ which is nearly the same as cellular radio service, further with no problems of congestion and availability of multiple channels for communications cellular service was bound to easily cannibalize mobile services. There was neither cost advantage nor service advantage with mobile services to make it stand against cellular radio.

However pager services might offer competition to the cellular radio when it comes to expanding customer base. As they have a large customer base already and growing at a 30% annual growth rate. Pager service has the inherent advantage of being low cost($ 20 per month), and may continue to be more popular with low end markets such as sales persons and delivery men. This might slow down the penetration of cellular radio to lower rungs of potential buyers.

Other applicants for Cleveland SMSA cellular radio license:

Name of company Name of parent company In case of subsidiary Finance Subscriber cost

Cellular mobile systems of ohio, Inc Graphic scanning Inc $ 200 million LOC, $ 132 million cash $ 4.95/ month, $ .26/ min business hrs, $ .12/ min night time.

MCI cellular telephone company MCI telecommunications corporation. $ 300 million LOC $ 15 basic/ month, $ .25/