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Teletouch Communications, Inc. (TLLE) Evolving From Already Strong Base Towards National Wholesale Wireless Equipment Distributor Focus

|Includes: Teletouch Communications Inc. (TLLE)

Teletouch Communications has an impressive pedigree in wireless and cellular services stretching back almost five decades, as well as some of the hottest consumer electronics retail/wholesale action out there today. As one of the top ASP (authorized service provider) and billing agents for massive industry fixture AT&T, Teletouch is a well-respected, well-positioned provider of diverse connectivity solutions and has some impressive traction in areas like GPS-telemetry and two-way radio systems, even running their own two-way radio network and LTR systems down in Texas.

Speaking of two-way radio, Teletouch has developed a compelling reputation among law enforcement, fire/emergency response, and traffic/safety professionals for consistently delivering tailored solutions to both small and large departments. A key point of availability for the best equipment from top names like Federal Signal, Havis-Shields, Pro-Gard, Santa Cruz Gun Locks, and Whelen Engineering to name but a few, the company creates brilliantly designed state-of-the-art solutions for any budget. The company holds several key cooperative purchasing network contracts with the big players like GSA, BuyBoard, and TXMAS, putting TLLE right in the pipeline for providing to city, state, and federal organizations. As an authorized Motorola Dealer in two-way communications, again with top names like Digital Antenna, ICOM, Kenwood, and Vertex rounding out the availability playlist, as well as a small army of highly-skilled technicians to assist the clients, it's no wonder Teletouch has been able to construct such firm foundations in the two-way space.

The Teletouch and Hawk Electronics brands are quite well known in the Dallas-Fort Worth area through the company's chain of 15 branded retail locations and authorized agents stores. Married to a dynamic sales team with an engaging ecommerce presence via Hawk's portals HawkElectronics, HawkWireless, and HawkExpress, the company is able to maintain a very noticeable channel force via these entities, doing a great job of keeping customers in the loop with call center operations and serious responsiveness to customer demand for flexible solutions.

Instances which showcase the company's market vector, like the recently announced multi-year national supply and distribution agreement with TCT Mobile (a subsidiary of global consumer electronics manufacturing giant TCL Communications) to sell/distribute their ALCATEL ONE TOUCH® branded mobile phones, are numerous. This major deal with rapidly rising star of the handset manufacturing industry, TCT Mobile, places Teletouch in the pole position for prime sales/distribution to US Tier-1 (AT&T, T-Mobile, Verizon, Sprint) wireless carrier indirect distribution channels as well as all the other (Tier 2-3) domestic carriers.

The national distribution presence created through PCI Wholesale (operated by TLLE subsidiary Progressive Concepts, Inc.), which handles everything from Tier 1 cellular carrier agents down to small electronics retailers, is a broad B2B channel for the company, with point of sale and support available through PCIWholesale and PCIDropship.

Wholesale distribution looks to be a strong future for TLLE and the company is targeting fiscal year 2015 for the segment to become the primary earnings engine, having successfully opened up multiple agreements directly with cellular accessory, mobile electronics, and handset manufacturers like the TCT Mobile deal. With much broader mobile audio and wireless offerings under its belt, TLLE has the reputation and the architecture to execute successfully on overall strategic growth targets, with the wholesale distribution module looking the most robust.

For more information on Teletouch Communications, Inc., please visit the company's main site: TeleTouch.com

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