www.socialmobileusa.com

Feature Smart Tablets MiFi

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About Us

Social Mobile Telecommunications (SMT) is a Miami-based white-label electronics manufacturing, sourcing, supply chain & logistics, and fulfillment company partnered with Saga Mobile in Shenzhen, China. Established in 2011, SMT have quickly become one of the largest wireless electronics providers to the prepaid open market. In the US, we are the dominant white-label supplier to the US government’s Lifeline Assistance program. Our customized, turn-key program guarantees our customers increased activations, lower churn rates, decreased costs, new revenue streams, and time saved, all contributing to their bottom line. With more than 20 years of telecommunications experience and industry networking, our success has reached global platforms in the USA, Canada, Africa, and South America. SMT’s innovative Team develops new solutions daily to help our small, medium, and large partners excel in the wireless industry. SMT currently provides logistics services for over 3 Million handsets (both feature and smartphones, 3G & 4G) and tablets annually. We provide the most cost-effective products and time-saving solutions tailored for and meeting the product specifications of each partner. We can (and have) deliver on the latest technology requisites demanded by the dynamic wireless industry. If you are looking for a partner in the wireless space, you have come to the right place.

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How can SAGA’s patented Lifeline solution reduce cost and increase your bottom line?

Eliminate distributor-> Partner with manufacturer

Reduce support calls

Eliminate activation support calls

Minimize CHURN

Eliminate Kitting/Packaging fees and time

Educate the end user

Create brand awareness

Increase activation percentages

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Simplify Activations

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SAGA offers a customized, turn-key program with a proven history of success. We guarantee increased activations, decreased costs, and time saved, all contributing to your bottom line.• Preinstalled SIM Cards• Plastic Film Screen Protector• Quick-start Voicemail Setup• Simplify the Infield Activation Process• Sim Lock

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Educate The End-User & Increase Retention/Recertification

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The activation process has been simplified for the user’s experience.• Pre-programmed Support and Top-Up numbers • Pre-programmed APNs • Monthly Alarm Notification• Wallet Card• Branded Handsets/Collateral

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Brand Recognition

- Branded handsets

- Branded accessories

- Branded manuals

- Branded quick start guides

- Branded labels

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Grow your brand!

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SAGA’s Patented Packaging Solution

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Referral Program for Increased Customer Acquisitions

• A Referral Card can be placed inside the box to let customers know of a Referral Program• When the Customer refers a new customer, they will receive a pre-determined benefit• Free advertising • Increase word of mouth marketing• Double your chances of new customer acquisition

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Devices

SAGA offers a broad range of devices and tablets. Social can design/deliver our patented solution on any device. Additionally, eliminate RMA headaches with 1 year warranty and 2% seed stock.

*Devices available in all colors.

TABLET

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Lifeline Feature Phone Model w/ 1.3 MP Camera

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LIFELINE QTWERY 3G FEATURE PHONE

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Lifeline Smartphone OS 4.4 Kit Kat

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SAGA’s Customized Dealer Portal

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1. Authentication ensures privacy

2. Custom Home Page 3. Dealers can Order Products

4. Shopping Cart Designates Dealer, Address, Group, etc.

Use Social’s Dealer Portal to collect orders from Dealers and simplify your supply chain.

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Market Research for Mobile Applications

1. 86% of mobile time spent online is within apps

2. Average cost of a single installation is $2.13

3. Push Notifications:– Drive 5x more in- app activity

than email– Users are retained 2x the rate– Increase app engagement by

36%4. Mobile App install ad spend:

– Increased 235% from Jan-Dec. 2014

– Click-to-install rate increased 135%

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Revenue Generating Solutions

Leverage our partnerships to add value to your service and earn additional revenue.

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Customers receive a $5 free credit, Partners receive an 8% residual!

Search monetization generates:1. $2.00-$3.00/device per year based on

free search.2. Profit share for purchased apps, music,

etc.

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Revenue Generating Solutions Continued

Application Management Tool Firmware Over the Air• Intelligent application management• Favorite application recommendations• User friendly and advanced application

software• Excellent UE, easy operation

• Customizable User Interface• Customizable Functions• Force Updates• Powerful Push Platform

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Supply Chain/Cash Flow

Are you investing heavily by stocking inventory you don’t need immediately?We work with our partners to forecast shipments and provide monthly fulfillments, helping cash flow and reducing inventory issues.

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Simplifying Inventory

We provide you an excel document tailored to your Inventory Control System. This allows you to import all SIMs and IMEIs by uploading a single document. Furthermore, this allows you to track distributed inventory by master carton number.

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Integration Quick API Integration

Website Design

Connectivity for eBay, Amazon, and other eCommerce applications

Forwards Logistics Software Flashing

Warehousing

Service Activation

Pick, Pack, Ship

Reverse Logistics Post Sale Customer Advocacy Returns Management by Distribution

RMA

RMA Reconciliation

Real Time RMA Reporting

Reporting Real time transaction tracking

EDI Integration

Inventory Positions

SAGA’s Service Model

Kitting Collateral

Quality Control

Delivery Management

SIM Card Kitting

Dedicated 24/7 Account Manager

Inventory Reconciliation

Inventory Management System (IMS)

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Fulfillment, Warehousing, & Shipping Services

• Monitor inventory, orders, and shipments

• Check inventory levels• Forecast inventory needs• Receive inventory alerts• Manage returns• View backorders• View invoices• View tracking information• Manage shopping cart

integrations• Direct to Consumer (D2C)

• Kitting• Long/Short term storage• Order fulfillment• Labeling• National distribution• Reverse logistics• Inventory Management• Real-time inventory status• Inventory forecasting• Inventory alerts• Return management

inventory• View backorders• View invoices• View tracking information• Manage shopping cart

integrations

• National distribution• Aggressive

Domestic/International Rates

• Real-time tracking updates• Direct to Distribution (D2D)

Fulfillment Warehousing Shipping

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Packaging

SAGA offers unique packaging options designed for any distribution.

• Blister

• Clamshell

• Box w/ UV Print

• SAGA’s patented Ready Ship solution

• Eco-friendly pouches

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Competitive Advantage

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SAGA’s Solution

CompetitorsHandset

SIMLock

Preset Alarms

PresetContacts

PatentedShipping Solution

Monthly Alerts

APN’sPre-installed

SIM CardsPre-installed

RequiresAdditional Handling

Rev.GeneratingSolutions

VOIPSolution

SupplyChain/ Cash FlowSupport

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E.T.C CASE STUDY

CATEGORY PRE-SAGA PARTNERSHIP POST-SAGA PARTNERSHIP

CHURN (MONTHLY) 8% 2.8%

RECERTIFICATION (ANNUAL) 36% 85%

CALL CENTER (MONTHLY) 8,000 CALLS 2,800 CALLS

O.T.A (25% ACTIVATIONS PER HANDSET) 30,000 0

CATEGORY PRE-SAGA PARTNERSHIP POST-SAGA PARTNERSHIP

PACKAGING ($0.25/PER BOX) $30,000.00 0

KITTING ($1.50/PER DEVICE) $180,000.00 0

CALL CENTER ($2.57 PER AVG. 7 MIN. CALL-> LABOR & SERVICE

$246,720.00 $86,352.00

O.T.A CHARGES(25% ACTIVATIONS MULTIPLIED BY $0.40/PER HANDSET)

$12,000.00 0

SAGA has been the exclusive handset provider for a multistate E.T.C since January 2014. Below are the results:

AVG. COST-BENEFIT ANALYSIS

AVG. SAVINGS ANALYSIS

*BASED ON 120,000 ANNUAL DEVICES*

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Results 2014-2015

Pre-SAGA Partnership February March April May June July August September October November December January 2015

Opening Balance SUBS (CDMA) 81,000 83,720 86,222 88,525 90,643 92,591 94,384 96,033 97,551 98,947 100,231 101,412

ADDL 10,000 monthly SUBS 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000

8% CHURN Rate -7,280 -7,498 -7,698 -7,882 -8,051 -8,207 -8,351 -8,483 -8,604 -8,716 -8,818 -8,913

End of Month Balance 83,720 86,222 88,525 90,643 92,591 94,384 96,033 97,551 98,947 100,231 101,412 102,499

Post-SAGA Partnership February March April May June July August September October November December January 2015

Opening Balance SUBS (CDMA) 81,000 88,452 95,695 102,736 109,579 116,231 122,697 128,981 135,090 141,027 146,798 152,408

ADDL 10,000 monthly SUBS 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000

2.8% CHURN Rate -2,548 -2,757 -2,959 -3,157 -3,348 -3,534 -3,716 -3,891 -4,063 -4,229 -4,390 -4,547

End of Month Balance 88,452 95,695 102,736 109,579 116,231 122,697 128,981 135,090 141,027 146,798 152,408 157,861

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Forecast Fiscal Years 2016-2017

Post-SAGA Partnership February March April May June July August September October November December Janurary 2016

Opening Balance SUBS (CDMA) 157,861 176,082 194,122 211,980 229,661 247,164 264,492 281,647 298,631 315,445 332,090 348,569

ADDL 20,000 monthly SUBS 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000

1% CHURN Rate -1,779 -1,961 -2,141 -2,320 -2,497 -2,672 -2,845 -3,016 -3,186 -3,354 -3,521 -3,686

End of Month Balance 176,082 194,122 211,980 229,661 247,164 264,492 281,647 298,631 315,445 332,090 348,569 364,884

Post-SAGA Partnership February March April May June July August September October November December Janurary 2017

Opening Balance SUBS (CDMA) 364,884 381,035 397,025 412,855 428,526 444,041 459,400 474,606 489,660 504,564 519,318 533,925

ADDL 20,000 monthly SUBS 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000

1% CHURN Rate -3,849 -4,010 -4,170 -4,329 -4,485 -4,640 -4,794 -4,946 -5,097 -5,246 -5,393 -5,539

End of Month Balance 381,035 397,025 412,855 428,526 444,041 459,400 474,606 489,660 504,564 519,318 533,925 548,386

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*CHURNED REDUCED TO 1% AND 20K ADDITIONAL SUBS

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Bottom Line

• Results indicate SAGA was able to increase an additional 67% more SUBS at end of 2014 fiscal year;

Total Retained SUBS % Increase

Pre-SAGA Partnership (102,499-81,000/81,000) 27%

Post-SAGA Partnership (157,861-81,000/81,000) 94%

Total % Increase Post- SAGA Partnership (DIFFERENCE) 67%

End of Balance

Pre-SAGA Partnership 102,499

Post-SAGA Partnership 157,861

Total Retained SUBS 55,362Annual Price/Per SUB

Interim Credit/per year ($9.25*12 months) $111.00

Total Retained SUBS 55,362

Monthly Savings of Retained SUBS $512,098.50

Total Saving of Retained SUBS/end of year $6,145,182.00

Projected Cost Savings

Projected 18 months Forecast of Retained SUBS $9,217,773.00

Projected 24 months Forecast of Retained SUBS $12,290,364.00

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