Item
1. Business Background
SIGMABROADBAND CO.
is a registered Georgia company. The Company has certain technology
assets which had been fully impaired as of December 31, 2015. The
Company is to be engaged in the business of providing voice, data,
and digital video as a triple play bundled service to rural markets
in the United States of America. We plan to offer our customers
traditional cable video programming, Internet services, telephone
services and IPtv, as well as advanced video services such as on
demand, high definition (“HD”) television and digital
video recorder (“DVR”) service. We plan to provide
national and international long distance service. Our business plan
include goals for increasing customers and revenue. To reach our
goals, we will actively invest in our network and operations in
order to improve the quality and value of the products and packages
that we offer.
SIGMABROADBAND CO.
has never declared bankruptcy, it has never been in receivership,
and it has never been involved in any legal action or proceedings.
Since becoming incorporated, has not made any significant purchase
or sale of assets, nor has it been involved in any mergers,
acquisitions or consolidations. SIGMABROADBAND CO. is not a blank
check registrant as that term is defined in Rule 419(a)(2) of
Regulation C of the Securities Act of 1933, since it has a specific
business plan, purpose and substantial assets.
Since
our inception, we have been engaged in business planning
activities, including researching the industry, identifying target
markets for our services and developing our SIGMABROADBAND CO.
models and financial forecasts, performing due diligence regarding
potential geographic locations and acquisitions most suitable for
establishing our offices and identifying future sources of
capital.
Currently,
SIGMABROADBAND CO. has officers and directors who have assumed
responsibility for all planning, development and operational
duties, and will continue to do so throughout the beginning stages
of the Company. Other than the Officers/Directors and other
management team, there are no employees at the present time. We do
anticipate hiring regular employees when the need
arises.
SIGMABROADBAND CO.
is currently is engaged in talks with several other companies for a
possible merger or acquisition.. Also, we may pursue other
strategic acquisitions that complement our current business model
within the technology industry which may allow us to expand our
activities, capabilities, advance our production and
revenue.
SIGMABROADBAND
CO.’s fiscal year end is December 31.
Industry
Background
Approximately 100
million Americans do not have broadband at home today and most of
them are living in rural communities across America. We intend to
be a leading provider of cost-effective and reliable technology
services for home, small to medium sized businesses in the areas we
serve and to create value to our shareholders.
We
intend to deliver innovative communications, information and
entertainment. Our voice, data and video products and services
offer over intelligent wireless, wireline, cable, fiber, broadband
and global IP networks that meet customers' growing demand for
speed, mobility, security and control. As a committed corporate
citizen, we use our advanced communications services to address
important issues confronting our society today, especially in rural
America. We plan to follow a strategy of being first to our
regional markets with technology and services first introduced in
metropolitan areas by national service providers.
We
intend to be a full service, facilities-based cable operator, local
exchange and inter-exchange carrier serving both residential and
commercial customers by providing voice, data and digital video
services. We intend to employ the newest technology available in
the marketplace today, which provides quality of service (QoS),
reliability, security, redundancy and continuity of service always.
In the future, we will be recognized as a leader in the data
network, IP telephony and cloud-based services. Our potential
customers are located in some of the country’s largest cities
to families living in rural communities. We intend to establish a
dominant national presence in the triple-play broadband, cable and
telecom industry in America.
Plan
of Operation
We are
a development stage company, incorporated on October 19, 2012 and
have not started operations or generated or realized any revenues
from our business operations. However, we have substantial
technology assets ready to deploy in the rural markets where we
plan to provide our services.
Our
auditors have issued a going concern opinion. This means that our
auditors believe there is substantial doubt that we can continue as
an on-going business for the next twelve (12) months. Our
auditors‟ opinion is based on the uncertainty of our ability
to establish profitable operations. The opinion results from the
fact that we have not generated any revenues. Accordingly, we must
raise cash from sources other than operations. Our only other
source for cash at this time is investments by others in our
Company.
Our
Officers and Directors are responsible for our managerial and
organizational structure which will include preparation of
disclosure and accounting controls under the Sarbanes Oxley Act of
2002. When these controls are implemented, they will be responsible
for the administration of the controls. Should they not have
sufficient experience, they may be incapable of creating and
implementing the controls which may cause us to be subject to
sanctions and fines by the Securities and Exchange Commission which
ultimately could cause you to lose your investment.
Since
incorporation, the Company has financed its operations originally
through private capital and then, loans from stockholders and
executives of the Company. As of December 31, 2016 we had $167 cash
on hand. We had totaled operating expenses of $47,615 which were
related to general and administrative costs (See “Financial
Statements”).
To
date, the Company has not fully implemented its planned principal
operations or strategic business plan. SIGMABROADBAND CO. is
attempting to secure sufficient monetary assets to increase
operations. SIGMABROADBAND CO. cannot assure any investor that it
will be able to enter into sufficient business operations adequate
enough to insure continued operations.
Our
intended plan of operations is to offer voice, data, and video
services and implement the necessary sales and marketing support to
begin generating revenue. If SIGMABROADBAND CO. does not produce
sufficient cash flow to support its operations over the next 12
months, the Company will need to raise additional capital by
issuing capital stock in exchange for cash in order to continue as
a going concern. There are no formal or informal agreements to
attain such financing. SIGMABROADBAND CO. cannot assure any
investor that, if needed, sufficient financing can be obtained or,
if obtained, that it will be on reasonable terms. Without
realization of additional capital, it would be unlikely for
operations to continue and any investment made by an investor would
be lost in its entirety.
SIGMABROADBAND CO.
currently does own significant plant or equipment that it can seek
to sell in the near future in order to sustain its operations if
not able to raise necessary capital for its business.
Our
management anticipates hiring employees over the next twelve (12)
months as needed. Currently, the Company believes the services
provided by its officers and directors appear sufficient at this
time.
The
Company has not paid for expenses on behalf of any directors.
Additionally SIGMABROADBAND CO. believes that this policy shall not
materially change within the next twelve months.
The
Company is plans to seek a business combination with another entity
in the foreseeable future under the right
circumstances.
Our
Mission
To be a
leading provider of cost-effective and reliable technology services
for home, small to medium sized businesses in the areas we serve
and to create value to our shareholders.
Our
Vision
To be a
force in the technology industry that will transform the way of
life in our communities.
Our
Commitment to Customers
To
provide optimum support and service using state-of-the-art
technology and innovative customer care, building long- standing
partnerships with our customers, ensuing mutually beneficial
returns.
The
Market
FCC
Broadband Report Synopsis:
As per
the U.S. Federal Government, Broadband is the great infrastructure
challenge of the early 21st century. Like electricity a century
ago, broadband is a foundation for economic growth, job creation,
global competitiveness and a better way of life. It is enabling
entire new industries and unlocking vast new possibilities for
existing ones. It is changing how we educate children, deliver
health care, manage energy, ensure public safety, engage
government, and access, organize and disseminate
knowledge.
But
broadband in America is not all where it needs to be. According to
the FCC Broadband Report Synopsis,
a
pproximately
100 million
Americans
do not have broadband at home
. Broadband-enabled health
information technology (IT) can improve care and lower costs by
hundreds of billions of dollars in the coming decades, yet the
United States is behind many advanced countries in the adoption of
such technology. Broadband can provide teachers with tools that
allow students to learn the same course material in half the time,
but there is a dearth of easily accessible digital educational
content required for such opportunities. A broadband-enabled Smart
Grid could increase energy independence and efficiency, but much of
the data required to capture these benefits are inaccessible to
consumers, businesses and entrepreneurs. And nearly a decade after
9/11, our first responders still lack a nationwide public safety
mobile broadband communications network, even though such a network
could improve emergency response and homeland
security.
SIGMABROADBAND CO.
was created to take advantage of the market demand for
communications and entertainment bundled services priced within the
reach of all consumers. We are deploying voice, data, digital video
and other broadband related services to Rural America. We are
positioned to provide services to 45,000 homes in Arizona and
another 3,000 homes in Missouri. We plan to extend the Missouri
network to another 15,000 homes bringing the total in our
franchised area to 18,000. Our intended $99 per month triple-play
service standard package of voice, data and digital video will
provide a compelling offer that will attract many new subscribers
and be a competitive advantage going forward. None of our known
competitors have such an offer and if they choose to follow, they
will erode their existing revenue base.
Market
Pricing Strategy
Our
key market
pricing strategy is to bundle our services to provide a more price
competitive package to the customers
. The
"all inclusive and flat
rate"
billing we promote, allow customers to plan for and
budget a fixed price for all their monthly telecommunication
services. This billing strategy sets us apart from all of our
existing competitors. We intend to provide optimum support and
service using state-of-the-art technology and innovative customer
care, building long-standing partnerships with our customers,
ensuing mutually beneficial returns.
Services
and Product
Our
technology allows us to provide Broadband triple-play services to
any market nationwide. Our core business objective is to offer a
bundling of services to include telephone service, Internet access,
cellular and cable television nationwide; and also providing cloud-
based and IPtv services. The Bundled Service or T3
(Triple Play)
will be made available to
the public at a prepaid fixed cost of $99 per/month with no taxes,
no contract, no deposit and no credit needed to the low income
families, retirees, unserved, underserved, underprivileged and
rural communities, in order to help bridge the technology usage gap
in these areas. The potential customer base is extensive, as it
literally consists of businesses, residential and rural customers-
throughout the 95% of the U.S. covered by our network
infrastructure.
Competition
Across
the United States, Multiple Systems Operators (MSOs) compete with
Direct Broadcast Satellite (DBS) providers and incumbent telecom
companies. We believe that we compete with other providers in three
product categories: Video, Voice, and Data.
We are poised to compete with any competitor
that enters our market in terms of price, quality of service and no
term contract.
Since our operations are in rural areas, we
may not have to compete with any regional and national carriers,
except for local independent operators and DBS
providers.
Market Strategy
:
Rural vs. Urban Markets
In
rural markets, cable and DBS are often the only providers of video
services. Recently, cable companies have been losing video share to
DBS, primarily due to the fact that DBS has a greater number of
high-definition channels and provides better customer service. We
are trying to make up ground by pushing bundled services to
customers (HSD and telephony). The current trend of RBOCs providing
FTTN or FTTP will mostly affect competitive dynamics in urban
markets not in rural markets, as the high amount of CAPEX being
spent can only be justified in areas with high
density.
We will be the only major triple play service
provider in all of our rural markets where our cable/hubs
infrastructure will be located at present time.
The
competitive dynamics between RBOCs and Cable MSOs in rural areas,
where FTTN and FTTP are not available, favors cable. We will
continue to have a competitive advantage in high speed data, voice
and digital video. Traditional RBOC services generally do not
include video, which will allow us a large bundling advantage.
Wireless substitution is most likely to continue, though the rate
of substitution will be less in rural areas, where users are more
likely to keep wireline phones because of cellular signal issues.
We believe that Cable MSOs like
SIGMABROADBAND CO. operating primarily in rural markets will face
more favorable competitive dynamics than those in urban
markets.
Our
Triple Play Price Strategy and Differences
We set
ourselves apart from the competition not only by providing a superb
customer care and quality of service but also offers our customers
a flat rate service at $99/month including all applicable taxes and
without any term contract ever for the exact same services that the
competition may provide in areas we serve.
Operating
Strategy
SIGMABROADBAND CO.
offers a quality consumer experience, at a reasonable price for
entertainment, communications and all broadband services. We intend
to always value our customer’s needs and their requests,
while balancing the requirement to meet our financial
responsibility. Our focus will be greater than customer service; it
will be on serving the customer and our strategic
assets.
Our key
to success is to bring the strength of our business development
experiences, well trained personnel and cutting-edge technologies
in every segment of our core businesses to increase profit margin
and increase investors‟ satisfaction, while we deliver value
from diversity and promote sustainability for economic and social
development.
Regulation
Challenges
There
are multiple and intense regulatory battles over triple-play
services as incumbent telephone companies and incumbent cable
operators attempt to keep out new competitors - since both
industries historically have been regulated monopolies, regulatory
capture has long been as much a core competency for them as have
been prices and terms of service. Cable providers want to compete
with telephone companies for local voice service, but want to
discourage telephone companies from competing with them for
television service. Incumbent telephone companies want to deliver
television service but want to block competition for voice service
from cable operators. Both industries cloak their demands for
favorable regulatory treatment in claims that their positions favor
the public interests.
Business
Challenges
The
challenges in offering triple-play are mostly associated with
determining the right business model, backend processes, customer
care support and economic environment rather than technology. For
example, using the right billing platform to address a variety of
subscriber demographics or having the appropriate subscriber
density to financially justify introduction of the service are a
few factors that affect decisions to offer triple-play
services.
In
addition to the challenges mentioned above, there are a number of
technical challenges with regards to the rollout of triple play
services. Broadband voice, digital video and high speed data all
have different characteristics and place different burdens on the
network that provides access to these services. Voice services are
greatly affected by jitter, whereas packet loss has a greater
effect on digital video and data services. In order to use a shared
network resource such as cable or DSL, we may use network equipment
that employs quality-of-service mechanisms to adjust to the
requirements of the different services.
SIGMABROADBAND CO.
creates a bridge between local exchange carrier and cable service
provider all into one network and from one provider, which in turns
help reduce the customer’s cost, better quality of service
and best customer service experience.
The
other challenge for us is to provide superior service at a price
value point that will attract customers away from existing telecom
and cable operators in areas where we compete. We are confident
that we will be very competitive with our multiple channels of
basic video, a minimum 1.5d/2.0 Mbps Internet connection together
with an unlimited local/domestic long distance package all for $99
per month and no other hidden cost to the customer in one network
will attract many customers to our Company.
Our
financial forecasts reflect a rigorous marketing approach that
takes advantage of being the newest broadband triple-play provider
in the market we serve. This will create a baseline for a
significant marketing program should we reach the top of the
interest curve.
Our
Technology
We
intend to operate Class 4/5 voice switching, routers, digital
multiplexers among others and a cable network which allowing us to
lower the cost of IP and TDM voice termination to our customers. To
date, we have access from 23 head-end locations capable of serving
well over 30 rural counties and communities. The current network
without expansion spans 923 linear miles, covering more than 8,000
square miles, utilizing 732 miles of fiber optic cable or 4 million
feet of fiber infrastructure.
Employees
SIGMABROADBAND CO.
with the exception of its officers and directors has no other
employees, however, works with several outside consultants who have
substantial industry experience and who have dedicated time and
effort on behalf of the Company.
The
Company may be required to hire an attorney on a consultancy basis
to navigate permit and licensing requirements, but otherwise
SIGMABROADBAND CO.‟s Officers and Directors intend to do
whatever work is necessary to bring the Company to the point of
earning revenues from the sale of our services or further
acquisitions. All operational functions such as customer service
representatives, telemarketing, warehousing and fulfillment are
planned to be outsourced. Human resource planning will be part of
an ongoing process that will include constant evaluation of
operations and revenue realization.
Board
Committees
SIGMABROADBAND CO.
has not yet implemented any board committees as of the date of this
Annual Report on Form 10-K.
Directors
SIGMABROADBAND CO.
is authorized to have no more than seven directors. However, in no
event may SIGMABROADBAND CO. have less than one director. Although
the Company anticipates appointing additional directors, it has not
identified any such additional persons.
Compensation
of Directors
Because
we are still in the development stage, our directors are not
receiving any compensation other than reimbursement for expenses
incurred during their duties.
Compensation
Policy
Because
we are still in the early stages of formation and development, our
directors and officers are not currently receiving any
compensation.
Stock
Option
Because
we are still in the early stages of formation and development, our
directors and officers have not received any stock options or
freestanding SARs.
Stock
Option Plans
Our
board of directors has not adopted any Stock Option Plans as of the
date of this Annual Report on Form 10-K.
Bonuses
To
date, shares have been granted to management for achievement of
certain goals in the initial phase of establishing the
Company’s operation and organization. Any bonuses granted in
the future will relate to meeting certain performance criteria that
are directly related to areas within the executive’s
responsibilities with the Company. As the Company continues to
grow, more defined bonus programs will be created to attract and
retain our employees at all levels.
Employment
Contracts; Termination of Employment and Change-in-Control
Arrangements
We do
not have employment agreements with any of our employees, however,
we intend to enter into employment agreements with our key
executives and other member of management as the business
grows.