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.
