Compliance
Systems Corporation (OTCBB:
COPI) is a growing provider
of products and solutions
designed to help its
customers deal with the
regulatory environment, as
well as managing and
training their employees.
Through its Call Compliance
Inc. and Execuserve
subsidiaries the COPI
markets TeleBlock and
Hire-Intelligence to call
centers and businesses
worldwide.
Call
Compliance Inc., is a
developer of
technology-based compliance
solutions for the
teleservices industry. Its
prime focus is ensuring
compliance with
"Do-Not-Call" laws
through its patented
product, TeleBlock. The
company sells to corporate
companies and businesses
across a wide-range of
industries and sectors. By
blocking numbers on the Do
Not Call list at the Telco
central office, COPI's
patented TeleBlock Call
Blocking System helps
telemarketing operators
ensure compliance in the
highly regulated Do-Not-Call
environment by automatically
screening and blocking
outbound calls against
federal, state, and in-house
Do-Not-Call lists. Since
1999, TeleBlock has a
perfect record. No TeleBlock
subscriber has been fined in
10 years.
Execuserve
was founded in 1987 as a
search/services firm
dedicated to helping clients
increase revenue and
decrease attrition by making
smart hiring decisions. From
the start, Execuserve
differentiated itself from
other search firms by using
a detailed process model,
along with profiling and
reporting tools to evaluate
candidates and employees
from a behavioral
perspective. It is this
depth of experience that
provided the basis for
Hire-Intelligence, a
revolutionary online
behavioral assessment tool.
TeleBlock
Without
getting too technical,
COPI's TeleBlock works at
the signaling level of a
telephone call. Many years
ago, in an effort to reduce
traffic on their networks,
the telephone companies
started using an out of band
signaling platform, known as
SS7, to set up and manage
the routing of telephone
calls in a separate network
rather than within the same
network that the voice
portion of a telephone call
is made on. If you place a
call, the SS7 platform gives
you a busy signal if the
line is in use. Teleblock operates
on one of the largest
independent SS7 network in
the world, with direct access
to carriers throughout North
America and worldwide.
TeleBlock is based on
COPI’s patented technology
which lets service
providers access federal and
state Do-Not-Call lists
without requiring new
connectivity by
carrier customers.
Do-Not-Call Regulations
Failure
to fully comply with
Do-Not-Call rules can reach
$25,000 per infraction. The
federal rules in the U. S.
pose more serious
challenges, with fines
ranging up to $11,000 per
call violation. If that is
not enough, consumers have
the authority to bring a
civil action against the
violating party and
potentially recover civil
penalties inclusive of court
costs, attorney fees and
monetary fines. In Canada,
CRTC can levy penalties of
up to $1,500 for an
individual and $15,000 for a
corporation, for each call
violation.
The
difference between 100% and
99.9% compliant is very
costly. A call center making
100,000 calls per month with
a 99.9% compliance rate ends
up making 100 calls to
Do-Not-Call numbers. Based
on federal penalty
guidelines, this equates to
upwards of $1.1 million in
fines. Simply put, Call
Centers can not afford to be
without COPI's TeleBlock.
There is no comparable
product on the market and
now it is available to
customers of AT&T, which
makes up a major portion of
the Telecom industry
revenues. To sweeten the pot
for shareholders, Canadian
telemarketers must get
compliant with the new
regulations, fast. As new
customers are added,
revenues should increase. As
revenues increase, we
believe the market
capitalization of COPI will
expand, resulting in a much
higher stock price.
Growth
Strategy
Just
like the U.S., Canada had
Do-Not-Call legislation go
into effect on September 30,
2008. Much like the
Do-Not-Call rules in the
U.S., Canadians can now sign
up to prevent telemarketers
from contacting them. The
primary distributor of
COPI’s TeleBlock
technology entered into
a Managed Service Agreement
with AT&T Services, Inc.
on September 5, 2008 to make
COPI's TeleBlock technology
available to its
telemarketing customers.
Like COPI's arrangements
with other carriers,
AT&T’s customers will
pay a fee for each inquiry
to the Do-Not-Call database,
regardless of whether the
telephone number appears on
a Do-Not-Call list. COPI
pays VeriSign a portion each
such fee for hosting and
managing the platform. In
our opinion, since AT&T
serves millions of
businesses, including all of
the Fortune 1000, this
opportunity could result in
exponential revenue growth
for COPI.
COPI
was granted patent
protection in Greece for a
modified version of the
TeleBlock system in February
2006. This patent protection
could apply throughout the
European Union, which could
enable COPI to market the
TeleBlock technology in
Europe, as the EU countries
implement Do-Not-Call
programs similar to those in
the U.S and Canada.
Voice
over IP allows TeleBlock
usage anywhere in the world
and in areas where COPI
lacks distributors locally.
VoIP telephone service gives
domestic companies that have
existing contracts with
telephone carriers that do
not license TeleBlock the
ability to obtain the
TeleBlock service. COPI is
in talks with several
industry leaders to offer
this VOIP version of
TeleBlock, first deployed
through VeriSign in November
2002. Currently, more than
40 telephone carriers and
resellers, including
AT&T, Qwest, Verizon
Business, XO, and Paetec,
have licensed TeleBlock and
offer it to their
telemarketing customers.
Currently,
COPI's VoIP service is
available at
www.citadeltel.com. The
Citadel TeleBlock service
provides COPI with another
avenue by which TeleBlock
can be offered to the
teleservices industry.
Citadel is currently
providing US dial tone with
TeleBlock through out the
USA and in countries such as
India, Mexico, the Dominican
Republic and Canada. COPI
recently launched TeleBlock
Office through Citadel,
which delivers a powerful
tool for teleservices
employees who work remotely
or agents who are
representing a company's
products and services.
Also,
COPI has retained an
investment banking company
to explore acquisition
opportunities that will
broaden the existing range
of products and services
offered to its existing
customer base. COPI has had
discussions with certain
companies regarding
potential transactions, but
no material definitive
agreements have been entered
into or announced.
Contact
Center Trends
In
an era where contact centers
are often undermanned and
under funded, managers need
to get the job done with
fewer resources despite ever
increasing demands on their
time.
For the year 2010,
there are quite a few
practical as well as
actionable contact center
trends and technologies that
are helping managers save
money and time.
Some
of these “hot trends”
include:
-Contact
Center Analytics-The value
of speech analytics, desktop
analytics and customer
feedback to lower the time
spent doing QA while
increasing its
effectiveness.
-Multi-Channel
Contact Centers –
Efficient deployment of
voice, chat, email and self
service channels can
significantly lower overall
contact rates and costs
while increasing customer
satisfaction and loyalty. As
more mobile device driven
consumers are demanding
these additional channels,
contact centers must be
equipped to respond to
ensure their company’s
success.
-Proactive
Customer Care Initiatives
– Low cost, automated
outbound IVR, email and SMS
can be used to head off
customer issues before they
become a problem. Proactive
customer service changes the
cost dynamics while greatly
improving service.
-Integrated
Tools For Quality Management
– There is a growing need
for integrated, efficient
and cost-effective quality
management tools that
support the needs of contact
center managers and
supervisors as they work to
consistently provide an
outstanding customer
experience. Minor
improvements in efficiency
through tools can add up to
less headaches and lower
costs to support already
overworked managers.
Summary
Opportunities
in the stock market are not
always so clear-cut, and
certainly do not happen
often. COPI has a tremendous
opportunity to generate
significant revenues through
its relationship with larger
companies, the Do-Not-Call legislation
in Canada, and by delivering
TeleBlock over its own VoIP
platform.
Since
the carriers bill their
customers for TeleBlock,
COPI has no credit risk with
respect to the end-users.
Carriers pay a contractually
determined amount on a per
query basis.
The
stock, which now trades for
a penny a share, traded for
$1.56 a few short years ago.
Fortunately for investors,
this agreement has been
overshadowed by the poor
economy, until now. We are
bringing this company to the
attention of our subscribers
before the business climate
starts to trend upward,
giving them ample
opportunity to make fortunes
on their investment.