Over the last few years we have kept an eye on Lightyear Wireless which is part of Lightyear Network Solutions, LLC. At one time I made the bold statement “Lightyear Network Solutions could be the next billion dollar telecommunication company.” So where is this company today?
Lightyear Network Solutions, Inc. is the new parent company after doing a reverse merger in 2009. They now run two separate divisions according to the latest financial report – Lightyear Network Solutions, LLC and SE Acquisitions LLC.
In this article I will focus on Lightyear Wireless and what has been happening in this direct sales channel. The latest financials show the wireless channel increased in revenue by $300,000.00 in the latest quarter to $900,000.00 revenues. If they hold steady and do not increase or decrease much in either direction, we can estimate the wireless division will finish the fiscal year around $3.6 million in revenues.
Knowing they lost some top leaders over the last few years, and some of their mid-level leaders were distracted during the MLM Wireless Wars, I believe this is a solid sign, that Lightyear Wireless is still a solid asset of Lightyear Network Solutions Inc.
To strengthen my belief, that wireless is part of the future of the parent company, is the fact they just hired Sean Lloyd, an industry veteran who has had successful runs at Cingular, Nextel and Cricket, before taking the new role as V.P. of Sales. In this role he will oversee the growth of all three distribution channels, agent, direct and retail channels.
Now, I do want to add a little personal insight from studying this industry for the last 24 months. The leaders inside of Lightyear Wireless need to do more than focus on recruiting. Although their recruiting numbers are up, so is the attrition rate of people leaving out the backdoor.
One way to fight this and win, is to help the distributor base understand the power of B2B sales. The most growth we are seeing in the telecommunication industry, especially in the mobile/wireless niche is business sales. 5Linx is a prime example, along with CAN and now new comer Vi-Tel. Long term residual income is found in business sales.
Something else I should cover real quick is the fact, the parent company did miss several Milestones they promised to specific investors and lenders. Due to these missed milestones, Lightyear has made some very important management changes.
Although, I still believe Lightyear has the management, longevity and passion to become a billion dollar telecommunication player. I think, there is a good possibility we will see one of three other scenarios before that happens:
- They are bought by a larger player looking to dominate the telecom industry.
- They sell or discontinue all non-performing divisions.
- They go for broke and buy or merge with a much larger but under performing company. We just watched regional telecom company CenturyLink do this with the purchase of Embarq, then Quest.
I do want to congratulate the field leaders who have held firm in their belief in Lightyear, and for supporting their field teams. It is the field leaders and their continued belief which has kept Lightyear rolling strong right through the wireless wars!
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