Profile: Teletouch Communications Inc (TLLE.OB)

Teletouch Communications, Inc. ((Teletouch), incorporated on July 19, 1994, offers a suite of wireless telecommunications solutions, including cellular, GPS-telemetry and wireless messaging. Teletouch is an authorized services provider and billing agent of AT&T products and services (voice, data and entertainment) to consumers, businesses and government agencies, operating a chain of 11 retail and authorized agent stores in North and Central Texas under its Hawk Electronics brand. Through Teletouch’s wholly-owned subsidiary, Progressive Concepts, Inc., the Company operates a national distribution business, PCI Wholesale, primarily serving Tier-1 cellular carrier agents, Tier-2, Tier-3 and rural carriers, as well as auto dealers and smaller consumer electronics retailers with product sales and support available through its direct sales personnel and the Internet. On August 11, 2012, the Company sold its two-way radio network and public safety equipment business.

Cellular Operations

The Company’s cellular business represents its core business, which has been acquiring, billing, and supporting cellular subscribers under a revenue sharing relationship with AT&T and its predecessor companies. The Company serves approximately 38,000 cellular customers in the Dallas / Fort Worth, Texas Metropolitan Statistical Area (MSA), San Antonio, Texas MSA, Austin, Texas MSA, Houston, Texas MSA, East Texas Regional MSA and Arkansas, including primarily the Little Rock, Arkansas MSA. As an authorized services provider for AT&T wireless services, the Company controls the customer experience, including initiating and maintaining the cellular service agreements, rating the cellular plans, providing complete customer care, underwriting new account acquisitions and providing multi-service billing, collections, and account maintenance. Product sales from the Company’s cellular business consist of primarily cellular telephones and accessories sold through its retail stores, the Internet, outside salespeople and agents.

Wholesale Distribution Operations

The Company operates a national cellular and car audio equipment wholesale distribution and trading business, which serves carrier agents, rural cellular carriers, smaller consumer and electronic retailers and automotive dealers throughout the United States. The Company also maintains certain international customer relationships, primarily in Asia, Europe and Latin America for its cellular related equipment sales business. The wholesale group acquires, sells and supports virtually all types of cellular telephones (handsets), related accessories, telemetry, car audio and car security products under numerous direct distribution agreements with manufacturers. In June 2012, the Company finalized its direct cellular phone distribution agreement with TCT Mobile Multinational, Limited, a wholly owned subsidiary of TCL Communication.

The Company competes with AT&T, Verizon, Sprint and T-Mobile.