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Is the industry ready for new Ofcom end-of-contract regulations?

New Ofcom regulations are due in February 2020 aimed at removing the end-of-contract trap. But are service providers ready to embrace the opportunity presented?

Read this insightful article below by Teresa Cottam of Omnisperience.

They don’t listen, they don’t see and they don’t communicate with you. It’s a frequently-repeated customer complaint about service providers. We call it the three frogs strategy. But new regulations from UK regulator Ofcom are being introduced in February 2020 which should drive the final nail in the coffin of this frustrating customer strategy. The regulations will force broadband, phone and TV firms to notify customers when their contracts are coming to an end, as well as inform them about the best tariffs. But are service providers ready, willing and able to make the change?

We’d argue that service providers worldwide need to think about what this means for their business, while B2B service providers need to get ahead of the issue and reflect on how it impacts customer expectations.

New regulations are being introduced in February 2020

The new regulations being introduced in the UK, resulted from  research by Ofcom that found that more than 20 million customers had gone beyond the terms of their contract and could be overpaying as a result. Ofcom discovered that customers with dual play landline and broadband bundles were paying 20% more on average when they were out of contract, and those with triple play bundles of landline, broadband and pay-tv were paying 26% more.

This is mainly because deals are offered on a promotional basis for 12 months, with charges rising after this if customers forget to renew their contracts and opt into a better deal.

Ofcom’s new rules are aimed at remedying this situation and mean service providers will have to inform customers at least 10 days before their contract is due to expire to remind them they need to look for  new deals. The notification will have to include any changes to the service and price paid if the customer does not renew but remains on the same contract, as well as the required notice period, and the best deals currently offered by the provider.

Ofcom also introduced new regulations in July 2019 which means customers are now able to switch mobile provider by sending a single free text message.

New research reveals service providers still not communicating with customers

However, new Ofcom research shows just how ill-prepared service providers are for this change. The regulator found that over the last 12 months, 7 out of 10 UK customers hadn’t heard from their service providers about the status of their contract. The pattern was broadly similar across all sectors, revealing an industry-wide problem.

Proportion of UK customers that hadn’t been communicated with in previous 12 months about their contract:

– 71% of broadband customers

– 70% of mobile customers

– 74% of fixed line customers.

Omnisperience argues that by complying with just the basics of the regulations, service providers will be putting themselves at a huge disadvantage.

Imagine. You are one of the 7 out of 10 UK customers that have not heard from their service provider for 12 months and thus have no discernible relationship with them, and certainly no loyalty towards them. You will now be prompted that your contract is about to end and it will be easier than ever for you to shift service provider in order to chase the best possible deal. What are you going to do?

This is a very dangerous situation. Service providers not only risk losing customers to rivals, but also face elevated customer renewal and acquisition costs as lost customers will need to be replaced and renewing customers will need to be bribed to remain as a result of a zero-trust, zero-loyalty relationship.

A change of mindset is required

The solution to this challenge is obvious, if somewhat alien to many service providers. To mitigate the risk, they will need to work harder to build a relationship with their customers during the term of their contract, taking the focus away from price comparisons and discounting and placing it on value and engagement. They will also need to shift from a mindset of acquisition, which drives churn because it offers the best deals to new customers, towards one of retention where loyal customers get the best deals. Such as shift is in line with customer expectations, because it places value on loyalty and the longevity of the relationship.

John Hoggard, Principal in Utilities & Telecom at Quadient, apparently agrees with us. He says: “The biggest area of customer experience communications providers must focus on is proactivity. Simply put, people now expect service providers to really know them, and contact them with the right information, in the right way, at the right time…there is a real opportunity to improve customer communication throughout the duration of a contract and encourage them to remain loyal. Ultimately, customer loyalty will make the difference between success and failure.”

While Soft-ex’s Grainne Magfhloinn reminds us that service providers already have a perfectly good tool they can utilise to build loyalty – their bills. She says: “Personalising and simplifying digital billing communications enhances the customer experience by ensuring customers receive accurate and easy-to-follow bills. Proactive notifications on prorated charges, campaign roll-offs and end-of-contract notices, all generate better customer engagement and loyalty”. Magfhloinn argues that transparency provided via interactive billing and personalised offers (based on previous usage or preferences) will deliver positive results in customer retention levels. “Self-serve billing analytics, accessible by user-friendly dashboards, means that service providers can build that all-important customer trust, highlighting that there are no hidden costs or inaccurate charges, leading to longstanding relationships,” she comments.

Omnisperience View: What this means for B2B service providers

While this regulation focuses on consumers, rather than businesses, B2B service providers need to be mindful of what is happening in the B2C space. Many sole traders, homeworkers and SME customers are on consumer contracts, not business contracts, and will thus be within the remit of this regulation. These represent some of the most valuable customers you have because they tend to consume more and be prepared to pay for it. What’s more, with the continued consumerisation of enterprise services, it is inevitable that business customers will expect the same level of proactive experience they are receiving as a consumer customer when they are in their ‘business persona’ and buying B2B services. Rewarding loyalty, communicating more effectively, and being proactive are not rocket science but business 101, and essential for any B2B service provider who wants to be successful in 2020 and beyond.

Service providers beyond the UK also need to be mindful and examine what is happening (and why) – building it into their own strategy, customer experience and offerings.

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WidePoint Reports Third Quarter 2019 Financial Results

WidePoint Corporation (NYSE American: WYY), the leading provider of Trusted Mobility Management (TM2) specializing in Telecommunications Lifecycle Management, Identity Management and Digital Billing & Analytics solutions, today reported results for the third quarter ended September 30, 2019.

Third Quarter 2019 and Recent Operational Highlights:

  • Received $14.7 million in recent contract awards for Telecom Expense Management (TEM) and Mobility Managed Services (MMS)

  • Successfully completed an address canvassing project with CDW-G for 2020 U.S. Census project

  • Announced $2.5 million share repurchase program

Third Quarter 2019 Financial Highlights (results compared to the same year-ago period):

  • Revenues increased 39% to $­­29.6 million

  • Gross profit increased 17% to $4.3 million

  • Net income totaled $184,000

  • Adjusted EBITDA, a non-GAAP financial measure, increased to $949,000, marking the company’s ninth consecutive quarter of positive adjusted EBITDA, and in line with forecast

Nine Month 2019 Financial Highlights (results compared to the same year-ago period):

  • Revenues increased 25% to $73.6 million

  • Gross profit increased 17% to $12.6 million

  • Net income totaled $260,000

  • Adjusted EBITDA totaled $2.6 million

For further detail please visit www.widepoint.com


The following statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under the “Safe Harbor Statement” below.

Financial Outlook
For the fiscal year ending December 31, 2019, the company is reiterating its revenue guidance of $90.0 million to $93.0 million, representing growth of 8% to 12%. The company is also reiterating its adjusted EBITDA guidance of $2.75 million to $3.5 million, which represents an improvement compared to fiscal 2018. The increase in adjusted EBITDA reflects the company’s strategic investments in sales and marketing and product development to accelerate growth, as well as a $400,000 increase due to new Financial Accounting Standards Board (FASB) guidance regarding the treatment of capital lease. The company’s financial outlook is based on current expectations.

Management Commentary
“In the third quarter of 2019, we continued building on the momentum we generated in the first half of the year by growing the topline to drive towards consistent bottom-line profitability,” said WidePoint’s CEO, Jin Kang. “From a financial perspective, the quarter was highlighted by a 39% increase in revenues, positive net income, and our ninth consecutive quarter of positive Adjusted EBITDA.

“Operationally, we secured $14.7 million in recent awards during the third quarter, which include contract expansions and renewals with current customers as well as new contract wins. The expansions indicate that our cross-selling and upselling initiatives continue to be effective; the new wins demonstrate our ability to expand our solutions into new markets with new partners; and the renewals prove that we continue to benefit from high-retention rates with our satisfied customers. We also successfully completed an address canvassing project with CDW-G for the 2020 U.S. Census, and we stand well positioned to effectively execute this program when it fully ramps up at the start of the new year.

“Overall, due to our ability to successfully execute on our strategic initiatives and the financial success we have reaped as a result, we believe that we are well positioned to finish the year in a position of strength and to continue accelerating growth and driving towards sustainable profitability over the long-run.”

Conference Call
WidePoint management will hold a conference call today (November 14, 2019) at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results.

WidePoint President and CEO Jin Kang, Chief Sales and Marketing Officer Jason Holloway, and President and CEO of Soft-ex Communications and WidePoint Interim CFO Ian Sparling will host the conference call, followed by a question and answer period.

U.S. dial-in number: 844-407-9500
International number: 862-298-0850

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 949-574-3860.    

The conference call will be broadcast live and available for replay here and via the investor relations section of the company’s website.

A replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through November 21, 2019.

Toll-free replay number: 877-481-4010
International replay number: 919-882-2331
Replay ID: 56430

About WidePoint
WidePoint Corporation (NYSE American: WYY) is a leading provider of trusted mobility management (TM2) solutions, including telecom management, mobile management, identity management, and digital billing and analytics. For more information, visit widepoint.com.

Non-GAAP Financial Measures
WidePoint uses a variety of operational and financial metrics, including non-GAAP financial measures such as Adjusted EBITDA, to enable it to analyze its performance and financial condition. The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. A reconciliation of GAAP Net loss to Adjusted EBITDA is included on the schedules attached hereto.

For more detailed financial statements please visit www.widepoint.com


Safe Harbor Statement

The information contained in any materials that may be accessed above was, to the best of WidePoint Corporations’ knowledge, timely and accurate as of the date and/or dates indicated in such materials. However, the passage of time can render information stale, and you should not rely on the continued accuracy of any such materials. WidePoint Corporation has no responsibility to update any information contained in any such materials. In addition, you should refer to periodic reports filed by WidePoint Corporation with the Securities and Exchange Commission for information regarding the risks and uncertainties to which forward-looking statements made in such materials are subject. Such risks and uncertainties may cause WidePoint Corporation’s actual results to differ materially from those described in the forward-looking statements.

Investor Relations:
Gateway Investor Relations
Matt Glover or Charlie Schumacher
949-574-3860
WYY@gatewayir.com


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WidePoint Receives $14.7 Million in Recent Contract Awards for TEM and MMS

WidePoint Corporation (NYSE American: WYY), the leading provider of Trusted Mobility Management (TM2) specializing in Telecommunications Lifecycle Management, Identity Management and Digital Billing & Analytics solutions, today announced that the company received approximately $14.7 million in recent contract awards for Telecom Expense Management (TEM) and Mobility Managed Services (MMS) during the third quarter of 2019.

During the quarter, the company recorded more than sixty-five contractual actions, which include new contracts wins as well as exercised option years and contract extensions with current customers. These awards are an amalgamation of contracts from both federal government and commercial customers. WidePoint began recognizing revenues from these awards during the third quarter of 2019.

“The contract awards we recognized in the third quarter demonstrate our commitment to expanding and diversifying our revenues and our ability to execute on this initiative successfully,” said Jin Kang, WidePoint President and Chief Executive Officer. “While the new wins exemplify our ability to grow beyond our current customer base, the extensions with current customers continue to validate the quality of our TM2 solutions, which are focused on Telecom Expense Management and Mobility Managed Services, and our ability to maintain enduring relationships with our customers by consistently providing them with valuable services.”

Jason Holloway, WidePoint’s Chief Sales & Marketing Officer, added: “We’re continuing to see increased interest and demand from both our strategic partners and potential clients for TM2, WidePoint’s comprehensive solution for securing, managing, and maximizing mobile assets and environments. We are excited to be adding to our long track record of successful performance with both government agencies and commercial enterprises, and we look forward to continuing to augment our unique position in the TEM and MMS landscapes.”

About WidePoint

WidePoint Corporation (NYSE American: WYY) is a leading provider of trusted mobility management (TM2) solutions, including telecom management, mobile management, identity management, and digital billing and analytics. For more information, visit widepoint.com.

Investor Relations:

Gateway Investor Relations

Matt Glover or Charlie Schumacher

949-574-3860, WYY@gatewayir.com

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Soft-ex showcase latest B2B & B2C Interactive Bill solutions at Total Telecom Congress

Soft-ex is delighted to be showcasing our latest B2B & B2C platforms at the upcoming global Total Telecom Congress, which takes place on Oct 29-30 in London. Across two days and eight streams of content, 300 industry-leading speakers will deliver thought leadership on how the modern Telco can reinvent itself, covering topics including the role of AI in future business models, softwarizing the network, reimagining customer service, delivering on the 5G promise, redefining culture, and much more. Soft-ex will be sharing how Interactive Billing can significantly influence customer experience and retention in a digital world.

Come visit us at Stand 25 and learn how we are helping CSPs reimagine their billing with personalized digital bill presentment and analytics. If you would like to arrange a demo, simply send us an email to sales@soft-ex.net

www.soft-ex.net

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WidePoint Reports Second Quarter 2019 Financial Results

WidePoint Corporation (NYSE American: WYY), the leading provider of Trusted Mobility Management (TM2) specializing in Telecommunications Lifecycle Management, Identity Management and Bill Presentment & Analytics solutions, today reported results for the second quarter ended June 30, 2019.

Second Quarter 2019 and Recent Operational Highlights:
  • Awarded $5.3 million in federal government contract renewals and modifications
  • Soft-ex, a WidePoint subsidiary, awarded $6.0 million contract renewal with a global communications service provider to deliver both cloud and onsite telecom solutions to government and multinational corporations
  • Secured more than $1.3 million in Trusted Mobility Management (TM2) contracts, the majority of which are high-margin, commercial contracts
  • Received Authority to Operate (ATO) from a major customer to implement WidePoint’s Intelligent Telecommunications Management System (ITMS™), which represents the second significant step toward achieving a FedRAMP certification
Second Quarter 2019 Financial Highlights (results compared to the same year-ago period):
  • Revenues increased 26% to $22.1 million
  • Gross profit increased 14% to $4.1 million
  • Net loss totaled $(308,000)
  • Adjusted EBITDA, a non-GAAP financial measure, increased to $0.6 million, marking the company’s eighth consecutive quarter of positive adjusted EBITDA, and in line with forecast
Six Month 2019 Financial Highlights (results compared to the same year-ago period):
  • Revenues increased 17% to $44.0 million
  • Gross profit increased 17% to $8.3 million
  • Net income totaled $76,000
  • Adjusted EBITDA totaled $1.6 million

For additional financial details please refer to www.widepoint.com

The following statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under the “Safe Harbor Statement” below.

Financial Outlook

For the fiscal year ending December 31, 2019, the company is reiterating its revenue guidance of $90.0 million to $93.0 million, representing growth of 8% to 12%. The company is also reiterating its adjusted EBITDA guidance of $2.75 million to $3.5 million, which represents an improvement compared to fiscal 2018. The increase in adjusted EBITDA reflects the company’s strategic investments in sales and marketing and product development to accelerate growth, as well as a $400,000 increase due to new Financial Accounting Standards Board (FASB) guidance regarding the treatment of capital lease. The company’s financial outlook is based on current expectations.

Management Commentary

“The second quarter was a continuation of the strong performance we established at the start of the year as we delivered another solid period of financial results, expanded several contracts with current customers, and continued to improve upon our already industry-leading credentials,” said WidePoint’s CEO, Jin Kang. “From a financial perspective, the quarter was highlighted by a 26% increase in revenues, a 14% increase in gross profit, and our eighth consecutive quarter of positive adjusted EBITDA.

“Operationally, we successfully re-secured and expanded several contracts with current customers in both the government and commercial sectors. These contract expansions and the positive effects they have on our financial results show that our cross-selling and upselling strategies continue to be an effective means of increasing our topline as we simultaneously remain conscientious of their effects on our bottom-line. Additionally, we received an ATO from a major customer to implement ITMS™, which is a major step toward ultimately receiving a FedRAMP certification.

“Overall, we remain confident that we will be able to continue to execute on our primary strategic initiatives throughout the course of the year to accelerate growth, improve margins, and drive higher profitability in the long-run.”

Conference Call

WidePoint management will hold a conference call today (August 14, 2019) at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results. WidePoint President and CEO Jin Kang, Chief Sales and Marketing Officer Jason Holloway, and President and CEO of Soft-ex Communications and WidePoint Interim CFO Ian Sparling will host the conference call, followed by a question and answer period.

U.S. dial-in number: 844-369-8770

International number: 862-298-0840

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 949-574-3860.    

The conference call will be broadcast live and available for replay here and via the investor relations section of the company’s website.

A replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through August 21, 2019.

Toll-free replay number: 877-481-4010

International replay number: 919-882-2331

Replay ID: 51160

About WidePoint

WidePoint Corporation (NYSE American: WYY) is a leading provider of trusted mobility management (TM2) solutions, including telecom management, mobile management, identity management, and bill presentment and analytics. For more information, visit widepoint.com.

Non-GAAP Financial Measures

WidePoint uses a variety of operational and financial metrics, including non-GAAP financial measures such as Adjusted EBITDA, to enable it to analyze its performance and financial condition. The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. A reconciliation of GAAP Net loss to Adjusted EBITDA is included on the schedules attached hereto.

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WidePoint Awarded $5.3 Million in Federal Government Contract Renewals and Modifications

WidePoint Corporation (NYSE American: WYY), the leading provider of Trusted Mobility Management (TM2) specializing in Telecommunications Lifecycle Management, Identity Management and Bill Presentment & Analytics solutions, has received multiple renewals and modifications to existing contracts with current federal government customers, with the aggregate value totaling approximately $5.3 million.

Included in the contract renewals and modifications are a six-month extension for both wireless and wireline services with a current customer; and modifications for increased support of wireless services, equipment, and accessory purchases for lines of service from two separate customers. WidePoint expects to recognize all revenues from these modifications over the next twelve months.

“The contract renewals and modifications we received from current federal customers validate both the quality of our Trusted Mobility Management, or TM2, framework and our ability to maintain excellent relationships with our customers by providing first-rate service and effective solutions,” said Jin Kang, WidePoint CEO. “These modifications indicate that our cross-selling and up-selling tactics continue to be effective and that we’re able to negotiate favorable contract renewals. We look forward to capitalizing on this momentum as we continue to expand our footprint in the federal space and build on our growing success and prospects in the commercial markets.”

About WidePoint

WidePoint Corporation (NYSE American: WYY) is a leading provider of trusted mobility management (TM2) solutions, including telecom management, mobile management, identity management, and bill presentment and analytics. For more information, visit widepoint.com.

Investor Relations:

Matt Glover and Charlie Schumacher

Gateway Investor Relations

(949) 574-3860

WYY@gatewayir.com

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Digital Billing Communications

Soft-ex are an innovative and a global leader in Digital Billing Communications platforms and we are delighted to integrate their solutions into our CCM portfolio to the benefit of our joint DSP clients

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Soft-ex to sponsor and speak at CEM in Telecoms Americas Summit

CX strategies are continually evolving to adapt to the needs of not only today’s customer, but also the customer of tomorrow

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WidePoint Secures More Than $18.7 Million in Contract Awards

WidePoint Corporation (NYSE American: WYY), the leading provider of Trusted Mobility Management (TM2) specializing in Telecommunications

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WidePoint wins $12M task order by the U.S. Coast Guard

WidePoint Corporation (NYSE American: WYY), provider of Trusted Mobility Management (TM2) specializing in Telecommunications.

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Soft-ex to attend upcoming MWC Americas

Soft-ex will be attending MWC Americas, in partnership with CTIA, on Sept 12-14, 2018 in Los Angeles. Ian Sparling, chief executive officer at Soft-ex

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WidePoint Awarded New BPA Task Order by the U.S. Department of Homeland Security Headquarters

WidePoint Corporation (NYSE American: WYY), provider of Trusted Mobility Management (TM2) specializing in Telecommunications

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WidePoint Corporation Reports Second Quarter 2018 Results

WidePoint Corporation (NYSE American: WYY), provider of Trusted Mobility Management (TM2) specializing in Telecommunication

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WidePoint Corporation Reports Second Quarter 2018 Results

WidePoint Corporation (NYSE American: WYY), provider of Trusted Mobility Management (TM2) specializing in Telecommunication

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WidePoint Corporation Reports Second Quarter 2018 Results

WidePoint Corporation (NYSE American: WYY), provider of Trusted Mobility Management (TM2) specializing in Telecommunication

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