ILCO

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ILCO

"It is the policy of the INNOTELCO Inc. to distribute and deliver products and services which meet the customer's specifications, and requirements at the most affordable price.

INNOTELCO Inc. is a driven organization which relies on continuous improvement, ongoing training and the utilization of a wide range of internal and external resources.

Our people take pride in building a strong relationship with the customer, and our commitment to them insures us their loyalty and their business. We are dedicated to providing quality products and services through global partnerships that will sustain corporate growth and profit for both the customer and INNOTELCO Inc.

Our goal is to become one of the largest suppliers of cable and telecommunications equipment in the world, low prices and strong customer service is our path to that goal."

Radomir Popovic

V.P. Sales and Marketing
INNOTELCO Inc.

Products

Data Communications Products
The Company offers a wide range of high-performance Category 5e through Category 6 cable products designed to operate within 10Base-T through 1000Base-T protocol. These cables exceed TIA/EIA-568-B.2 and 568-B.2-1 standards. These optimum-performance cables make up the core components comprising today's high-speed Ethernets, supporting speeds in excess of 1 Gb/s, while priced significantly lower than competitors'.

Telecommunications Cables
Innotelco offers a broad range of outside plant wire and cable products including air core, filled core, and specialty wire products for aerial, buried, and duct applications.

Fiber Optic Cables
A full menu of fiber optic cables for data communications and voice and video networks are offered by Innotelco . These products range from tight buffer and armored products for military applications, to loose tube and hybrid cables for communications networks. In addition to this, the company offers the advanced blown fiber systems, used in local area networks (LANs) and campus applications.

Coaxial Cables
Offered by Innotelco are an entire array of coaxial cables for Drop Cable, Trunk & Distribution Cable, and Network Coaxial Cable applications. Along with their standard offerings, the company also offers hybrid cables, which can be engineered to fit any custom application. The Company's cables are engineered to the highest standards, and are designed to be both flexible and durable, without sacrificing performance.

Durability is a must when constructing cables that will be exposed to environmental elements. Innotelco supplies only the highest quality cables for HFC networking ( definition ), including isolate jacket damage and inhibit corrosion, for underground installation. Other available product options include armor, messengers, dual jackets, and even a jacket with compartmentalized cells, increasing crush resistance.

The coaxial cables produced by Innotelco meet or exceed the standards for use in cable televisions.

Innotelco supplies cables which meet or exceed industry standards, delivering optimal performance, and are designed to withstand whatever elements they may be exposed to. Their cables are ideal for Broadband Video, Broadcast, and Data & Baseband.

Cable Construction

What is Coaxial Cable?

Coaxial cable is a type of type of communication transmission cable in which a solid center conductor is surrounded by an insulating spacer, which in turn is surrounded by a tubular outer conductor (usually a braid, foil or both). The entire assembly is then covered with an insulating and protective outer layer.

Coaxial cable is called "coaxial" because it includes one physical channel that carries the signal surrounded (after a layer of insulation) by another concentric physical channel, both running along the same axis. The outer channel serves as a ground. Many of these cables or pairs of coaxial tubes can be placed in a single outer sheathing and, with repeaters, can carry information for a great distance.

It is used by cable TV companies between the community antenna and user homes and businesses. Coaxial cable is sometimes used by telephone companies from their central office to the telephone poles near their clients. It is also widely installed for use in business and corporation Ethernet and other types of local area network. Because of its high bandwidth, you can simultaneously receive hundreds of channels from coaxial cable and/or provide broadband solutions to businesses and home owners.

Drop cables (braiding outer conductor type) are RG59, RG6, RG7 and RG11 types.
Distribution cables (aluminum tube outer conductor type) are 500, 540 serials types.

Market Environment

Innotelco is targeting the south-eastern European area known as The Balkans. This region consists of Greece , Albania , Macedonia , Bulgaria , Romania , the former Yugoslavia ( Serbia and Montenegro ), and Bosnia-Herzegovina.

The Balkan regions are primed for the products Innotelco offers. These countries' governments are currently repairing and restructuring the communication infrastructures tarnished by the effects of Communism and the wars that followed its collapse. This region offers vast opportunities for a company such as ILCO . Because of government interest in rebuilding the regions' economies, Innotelco is in a position to handsomely profit from the immense amount of funds reserved for this rebuilding. Along with the government interests, private companies are also heavily invested in the region, but have been hindered by high supply costs, and a tarnished infrastructure.

As we all know, communication infrastructures are becoming more centralized, with all kinds now sharing a common platform. As we have seen in the U.S. computer networks, cable television, and telephone service are now beginning to converge, especially with the growth of fiber optic lines in Ethernets and LANs. Fiber optics is quickly becoming the standard for data transfer and communication. Innotelco offers the necessary hardware for any of these configurations, and with a communications overhaul beginning in these countries, there is a substantial market to capture.

Company Structure

Innotelco has the optimal firm structure for the reemerging economies of the Balkan countries. Because of their low-cost, and highly efficient supply chain, ILCO will be able to bring competition to this region; eliminating rivals by passing their lower overhead costs to governments and private firms, and in turn, to the consumer.

Supply Side: China Partnership

The Company is currently in negotiations with several cable manufacturing companies in Mainland China . These firms' economies of scale, and low labor costs, enable the production of high quality cables in large quantities on an as needed basis, eliminating the carrying costs associated with large amounts of inventory. The Company has already tested several cables from these firms, and all have met or exceeded European specifications and regional quality control tests. According to The Company, because of these partnerships, ILCO will be able to sell their products 54% lower on average than rival firms. This adds up to significant profit margins of at least 30% and as high as 80% for the company, depending on the application.

Innotelco intends to sign an exclusive agreement with these Chinese firms to distribute their cables in the Balkan regions, putting them in a desirable position of market power by creating higher barriers to entry for rival firms.

Kaner is a distribution company located in Sarajevo , Bosnia - Herzegovina , specializing in importing and exporting technologies from abroad. The Firm has been highly successful in their 14 year history; working with regional governments, lobbying business for their partners, and partnering with private firms. The Firm's management brings over 30 years of experience in helping Innotelco become the premier supplier of cable and telecom hardware in the region. Kaner will be instrumental in forming a ground operation for Innotelco by providing office and storage space, as well as a work force for distribution of their products.

For the last three years, Kaner has conducted extensive market research in telecom and IT growth in the Balkan regions. Seeing the vast opportunities for telecom and cable expansion in the region's rapid growth, Kaner has enthusiastically entered into this partnership. They believe Innotelco's products are a perfect complement to their regional connections, and present a remarkable opportunity for market dominance.

Nedad Kazic, President of Kaner d.o.o.
Mr. Kazic brings over 30 years experience doing business in the Balkan regions. Prior to heading Kaner, Kazic directed a large media conglomerate in the former Yugoslavia , and was instrumental in bringing the Olympic Winter Games to Sarajevo in 1984. He is highly respected in the region, and has a proven track record for bringing in new business to the region.

Business Model

Innotelco is a telecom hardware supplier of copper, aluminum, and fiber optic wires and cables for transmission of voice, data, video, and control applications. The Company offers a complete line of products including data communications products and telecommunications cables, and coaxial cables. Based on Innotelco's strategic partnerships and alliances, The Company will be able to market their products at a distinct cost advantage to competitors, and has the regional presence to do so. The Company is aiming to become a leading supplier of telecom hardware in Europe , and is targeting the rapidly growing Balkan regions first in doing so.

Management

Ross Sehovic, CEO
Mr. Sehovic cultivated 11 years experience in international banking into a successful track record as an entrepreneur. In the past, Sehovic was instrumental in planning and implementing major restructuring strategies on behalf of the Yugoslavian government. His invaluable experience and regional influence give Innotelco instant credibility.

Radomir Popovic, President
Mr. Popovic brings over a decade experience in the areas of importing and exporting, marketing, and distribution. In the past, Popovic has successfully dealt with Yugoslavian telecom companies, and with the state-owned Montenegro telecom department (Crne Gore Telecom). In addition to working in the telecom sector, he has previously started several successful ventures in the health/wellness field.

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