Cell Manager Solution

RADIUS SOLUTIONS, INC. Cell Manager Solution TCPA Compliance Project Mark S. Love and Wade Kapsak 9/1/2011 9550 Regency Square Boulevard, Suite 500, Jacksonville, Florida 32225 (800) 577-2869 www.radiusarm.com

Radius Solutions Incorporated Radius Cell Manager Radius Solutions has developed the Radius Cell Manager to assist its clients in achieving Telephone Consumer Protection Act (TCPA) compliance and the efficient calling of cellular phone numbers. Understanding that it is permissible to call cellular phone numbers without using a automatic telephone dialing system (ATDS) as defined by US CODE: Title 47, 227, the Radius Cell Manager is both a modern telephony device and a process for the handling of cellular phone number calling through a Transfer Agent Process. Our legal counsel has approved the use of the Radius Cell Manager system in conjunction with the Transfer Agent Process. Below is an explanation of why the Radius Cell Manager is neither an ATDS nor a predictive dialer by statutory and regulatory definitions. The definition of an ATDS according to the TCPA, US CODE: Title 47, 227 is; (1) The term "automatic telephone dialing system" means equipment which has the capacity-- (A) to store or produce telephone numbers to be called, using a random or sequential number generator; and (B) to dial such numbers. When the TCPA was drafted, this practice of creating sequential numbers and then randomizing them was one of the problematic calling practices that was targeted for regulation thus the origin of the wording using a random or sequential number generator in the definition of an ATDS. The phrase using a random or sequential number generator in the definition is clearly intended to and must be read with the requirement that the equipment have the capacity to store and produce telephone numbers. To read either phrase in isolation would ignore the intent of the law, which was to prevent telemarketers from blindly calling phones numbers without a legitimate business purpose. While the FCC's Declaratory Ruling released on January 4, 2008 from the ACA's request for clarification of the TCPA related to the collections industry broadened its definition of an ATDS to include a predictive dialer, the Radius Cell Manager is not a predictive dialer because it does not do any of the following; Predict an agent s availability to take a call. Use multiple lines per agent to dial on. Dial ahead of an agent finishing a current call. 2

The Radius Cell Manager is a modern telephony device that when prompted by the Transfer Agent calls individual phone numbers one number at a time for an agent to answer the connected call. Similarly, other modern technologies, such as IP point and click functionality, use modern telephony devices to call the phone numbers one number at a time for an agent to answer the connected call. Because the Radius Cell Manager is not an ATDS or a predictive dialer it cannot and does not violate any of the prohibitions as defined in the TCPA 47 U.S.C. 227, (b)(1). Nonetheless, additional safeguards were considered in the development of the Radius Cell Manager to ensure compliance with the TCPA FCC regulations and anticipated issues decisions related to call cellular phone numbers. Components of the Radius Cell Manager and Transfer Agent Process: Cell Phone Dialing Specific Live Agent Always Answers Professional Skill Level Routing All Parties Recorded Throughout Results Reported Daily The Radius Cell Manager is telephony device that can only call one phone number on one phone line for an individual agent at a time, hence "one to one line ratio". There is no dialing ahead of an agent, hence no predictive dialing. The agent s current call must complete before his line is engaged for the next call. The Radius Cell Manager uses no pre-recorded messaging or synthesized voice prompts and records each call in its entirety. Our technology filters out "operator intercepts, answering machines, etc.", and only passes live connects to the waiting agent, the result; more efficient calling. No live connects go unanswered therefore, no abandonment of calls. A notation is sent to your system that specifically and easily identifies that a cell number was called using the Radius Cell Manager. Additional cellular number scrub processes are available to our client s upon request. The Transfer Agent Process is a low cost solution utilizing our agents to initiate the call, verify the right party, initiate the transfer, introduce the consumer to the client s associate and release the call. The client provides the cellular phone call list, establishes a call group, approves the Transfer Agent script, and sets the calling schedule. Custom solutions are available to accommodate any client s security and telephony requirements. Cell Manager Reporting and Results File A complete reporting package includes a full array of essential reports that reflect efficiency, time, agent and productivity on a call list and individual agent level for any client established reporting period. The client is sent a daily upload file containing information at the account level on every number called and the result of each call. Frequency of upload files can be modified at the client s request. 3

Project Operating Details The Radius Cell Manager is located in our Jacksonville, Florida data center. The Cell Manager is configured to deeply penetrate cell phone files while using a one to one line ratio and beginning each call with a live answer. A cell phone file requires minimal data; a name, phone and file number. The client specific Transfer Agent prompts (point and click) the Cell Manager to initial the call. The Transfer Agent determines if a Right Party Contact (RPC) has occurred following a brief script approved by the client. 4

When an RPC is verified, the Transfer Agent immediately initiates a push button warm transfer of the call to the client s call group. When the client s associate answers, the Transfer Agent introduces the consumer, releases from the call and comes ready for the next call. The Cell Manager records and logs the entire call sequence from start to finish including the clients associate which can be retrieved and made available upon request. The client provided phone number is displayed on the consumer s caller ID to direct generated inbound call traffic to the client s call center as well. Radius further provides ongoing reports and files to clients identifying: bad numbers, hang ups, successful and unsuccessful transfers, etc. Finally, Radius prices it s all inclusive Transfer Agent Service with a very economical cost structure. Easy to Set Up and Manage Process Customer Site Preparation (averages 72 hours): 1. Set Call Group 2. Set Call Schedules 3. Send List 4. Track Recoveries Radius Call Manager Configuration: 1. Configure Transfers 2. Import Client Call List Transfer Agent Process: 1. Train Agents on Script 2. Coordinate Call Schedule Compared to a totally manual dialing process our program has proven to be extremely valuable to our clients. Our preferred vendor s economical labor solution coupled with the Cell Manager s efficiencies provides the client a continuous flow of right party transfers and inbound calls to its most qualified associates. This is how you penetrate more files, reduce your internal cost and maximize your associate s productivity thereby driving a stronger ROI for your organization. 5

Transfer Agent Sample Script Hello, am I speaking with (CONSUMER S NAME)? IF YES: This is (TRANSFER AGENT S FULL ALIAS NAME) I have a very important call for you. Please hold with me for a moment while I connect you. CLIENT ASSOCIATE ANSWERS: Hello I have (CONSUMER S NAME) number 12345678 on the call. IF NO: Is (CONSUMER S NAME) available and can I speak to him/her? IF NO, AGAIN: Is this their phone number? Complete call with, Ok, thank you, I will try again later or Ok, thank you, I will delete this number from the account. WHAT IS THIS CALL ABOUT? The party waiting to speak with you can explain so please hold with me for a moment while I transfer you. IF THE CONSUMER IS NOT AVAILABLE: Ok, thank you, I will try again later. 6

Cost Comparison of Penetration Cell Number Penetration Cost Comparison Onshore Offshore Radius Per Agent Per Month Manual Manual Cell Manager Estimated Human Cost $ 3,520.00 $ 1,050.00 $ 1,500.00 Estimated Phone Cost $ 144.00 $ 144.00 $ - Estimated Infrastructure Cost $ 352.00 $ 225.00 $ - Estimated Software Cost $ 300.00 $ 300.00 $ - Estimated Number of Dials 5002 5002 16207 Cost / Dial $ 0.86 $ 0.34 $ 0.09 Radius Cell Manager Program Savings Comparison Savings over Onshore Manual $12,324.84 Savings over Offshore Manual $ 4,017.76 Human cost includes: payroll, management, human resources, benefits, employer paid taxes and insurance Phone costs includes: SIP line for agent audio and telephone LD Infrastructure cost includes: floor space, furniture, computer, network, supplies and utilities RCM dials per month: 110/Hr 6.8Hrs/Day 21.6Days/Mo = 16,207 Manual dials per month: 37/Hr 6.5Hrs/Day 20.8Days/Mo = 5,002 * The number of dials vary based on the quality of the call list. The more calls answered the lower the number of completed dials. We see a range of 110 to 170 calls per hour with our customers. What you get: Our skilled Transfer Agent 150 hours of coverage per TA per month Right party verification personalized script Warm transfer of calls Skills-based routed to your associate Radius Cell Manager Technology 4 times the efficiency of keypad dialing Your caller ID is displayed to drive inbound calls Comprehensive reporting Upload of daily results Wireless Number Identification Service Call recording throughout Time zone restriction compliance All telephone LD and SIP charges included 7

Transfer Agents Required to Achieve Needed Penetration Cell Manger Transfer Agent FTE Calculator FTE Hours No. of Working Days per Month (avg.) 21.6 Number of Hours per Day 8 Available Productive Hours 173.33 Utilization 85% Actual Productive Hours 147.33 Dials made Number of Dials per Hour 110 Number of Dials per Month 16207 Calculation Penetration % Required/ Month 400% Volume of Cell Numbers 40000 FTE Headcount Number of FTE Required/ Month 10 *Enter your information in yellow area To determine the number of Transfer Agents that will be required you need to determine how many cell phone numbers you wish to dial and how many times a month you wish to dial them or penetration factor. To calculate, you take the total cell phone numbers multiplied by the penetration factor and divide by 16,207 dials. The number of dials a Transfer Agent can complete varies by the quality of the list. The more calls are answered by consumers the fewer dials that can be complete by the Transfer Agent. For example, one of our clients sends cell numbers from older accounts where there are very few calls answered and is completing in excess of 20,000 dials per month per Transfer Agent. 8

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Radius Cell Manager Frequently Asked Questions Compliance: TCPA: Does the Radius Cell Manager (RCM) have the capacity to dial in a way that would be considered random or sequential? No, it dials only the numbers provided on the list in the order provided. Does the Cell Manager have the capacity to store phone numbers? Not within the meaning of the definitions of a predictive dialer. All modern telephone devices have the ability to store a phone number. The call lists are provided by the client daily, loaded on the RCM and dialed as listed. When the list is completed the numbers are deleted. Does the Cell Manager dial phone numbers without human intervention? No, the Cell Manager employs point and click technology. The Transfer Agent views a number from the client provided list and is prompted to call (point and click) the number when they are available. Does the Cell Manager have the capacity to produce phone numbers? No, the RCM dials only those numbers provided by client, in the order they are provided. Does the Cell Manager have the capacity to dial in such a way that two or more telephone lines are engaged simultaneously? No, the RCM calls one phone number for one Transfer Agent on one phone line. There is always a one-to-one line ratio being used at all times for all calls. Does the Cell Manager have the capacity to predict the availability when an agent will be available to take calls? No, when the last call has been completed and in the waiting mode, the Transfer Agent views a number from the client provided list and is prompted to call (point and click) the number. The RCM does not employ a predictive algorithm. Does the Cell Manager have the capacity to abandon calls where it hangs up on a called consumer without connection to an agent? No, there is no abandonment of calls or prolonged time before an agent answers a call. There is always a live voice for any connected call. Does the Cell Manager have the capacity to play prerecorded or artificial voice? No, the RCM does not have the capacity to play recorded, artificial or synthesized voice communication at any time. 12

FDCPA: By talking to debtors doesn t Radius falls under FDCPA? No, the Transfer Agent s sole responsibility is to determine if the person with whom they are speaking is the right party and to transfer the call to the Client s associate. The Transfer Agent does not know the subject of the call only that it is important and must be transferred to the clients associate immediately. Does the RCM conform to FDCPA requirement by times by time zone? Yes, the RCM includes the functionality that ensures that FDCPA, or if a more strict state law mandates time of calling, restrictions are met in each time zone. Will you be leaving a Foti compliant message? No, no messages are left on answering machines or voice mail so FOTI does not apply. When these devices are detected the RCM hangs up immediately. Call Recordings: Do you record a portion or all of the call? The Cell Manager can record none of, a portion, or all of the call, dependent on client s needs. If a client does not want to record the call after the transfer, the recording process can be configured to stop at the time of the transfer. Does the recording of the call after the transfer violate confidentiality? No, the recordings are only available to the client. The recordings are done to meet the client s specific operational or legal/regulatory needs. What do you do if the consumer refuses to be recorded? We recommend that the call be ended immediately, but if the client wishes, the Transfer Agent can turn the recording off and continue with the process. Where are the recordings stored? Recording are stored in our secure data center located in Jacksonville, FL. How long are the recordings kept? The recordings are stored for 1 year. Can we get the recordings sent to us? Yes, the recordings can be sent to you at any time that you require. Data Security: What are your policies and procedures related to data security rules? Radius Solutions Inc. s ISMS policies are designed to ensure business continuity, confidentiality, integrity and availability of all information assets, including information provided by or to its customers, business partners and regulators. 13

We achieve this by implementing rigorous security controls, establishing a documented and tested disaster recovery plan, and utilizing a monitoring system designed to control and reduce applicable business risk for all our stake holders. Security Objectives To safeguard the business information of Radius Solutions, Inc. against inappropriate access and changes. To safeguard customer s property and information against inappropriate access and changes. To safeguard the confidentiality, integrity and availability of physical and service assets and the availability of the personnel of Radius Solutions, Inc. To sustain business continuity and recover business information in the event of a disaster. To continually improve the effectiveness of the Information Security Management System. To comply with statutory and regulatory requirements. Insurance Coverage: Does Radius have insurance for errors and omissions? Yes, we have $5,000,000.00 of coverage policy with Evanston Insurance Company. Getting Started: Who are some of your clients? Asset Acceptance, NES, Central Credit Services What do we need to do to get started? 1. Determine number of cell phones to be dialed and frequency. 2. Execute the Cell Manager Service Agreement with Radius. 3. Provide customer call file, ANI and transfer number to Radius. 4. Configure call group on your PBX for transfers. 5. Set a schedule and train associates on transfer process. 6. Track success! A Cell Manager Program can be started in less than seventy-two (72) hours. How many ANI s can be set up? The number of ANI s for the program is determined based upon your requirements. What consumer information needs to be included in the customer file that the client provides to Radius to initiate the program (make calls)? The only pieces of information required for the Cell Manager program are: 14

Consumer name. Consumer phone number. Account number or other identifier that is used to validate the right party has been contacted What is the file format used for the customer file? A CSV file is acceptable. What is the length of a Radius Cell Manager program? A Cell Manager Programs is managed on a monthly basis. However, the minimum duration of a program should be at least three (3) months to allow for the results of consumer callbacks to be included in the assessment of the program. How does the Radius Cell Manager Program work? What is the actual technology? The Radius Cell Manager is patent-pending black box that makes calls, can program a caller ID, uses Dialogic Call Progress Analysis (to filter busy tones, answering machines, operator intercepts, fax machines and modems), has conferencing abilities in order to perform a warm or attended transfer, recognizes time zone restrictions, and records the entire call. The technology is more unique in what is not incorporated, that being, the prohibited elements of an ATDS or predictive dialer. Do you perform a wireless scrub on the accounts? How do you scrub accounts? All phone number files are scrubbed by us prior to calling to insure that the most up to date information is used. We use the latest files produced by Neustar provided by Interactive Marketing Solutions for cell phone number blocks and ported phone numbers for all of North America. How are the Transfer Agents managed? Radius provides an experienced management team to oversee the Cell Manager process including training and managing of Transfer Agents. Where are the Transfer Agents located? Our Transfer Agents are located in Dehradun, India. Does the Indian/off shore accent result in a higher number of hang ups? Although it is difficult to determine the reason that a caller abandons a call before transfer, it is important to understand that the Transfer Agents are provided with regular training and monitoring, and the script is limited to the determination of the right party contact, thus minimizing the likelihood of abandonment due to communication issues. How can the RCM be implemented if we or our clients do not allow data to be sent offshore? All data transmitted to Radius does not leave the US it always stays in our secure data center in Jacksonville, FL. As an alternative, we offer a program in which you can license the technology, utilize your own or your third party contracted resources as Transfer Agent s while still gaining the benefit or our knowledge and experience in managing the Cell Manager Program. 15

How can the solution be implemented if our clients do not allow us to contract work offshore? No collection work is performed offshore the work done by the Transfer Agents is similar to what a receptionist or an operator does in their duties. As an alternative, we offer a program in which you can license the technology, utilize your own or your third party contracted resources as Transfer Agent s while still gaining the benefit or our knowledge and experience in managing the Cell Manager Program. Can we use our employees/contractors as transfer agents? Yes (see Alternative Pricing question below). How many calls are made per day per Transfer Agent? Transfer Agents average between 800 1000 dials per day. The average manual operator can dial between 150 250 per day. How many associates will be need? The number of Transfer Agents needed is a factor of the volume of the cell phone penetration required monthly divided by the average dials stated above i.e. (attempts required) X (cell numbers to dial monthly) / (dials per agent per month as stated above). Can the associates do other work while waiting for transfers? Yes, the RPC transfer will come through as a normal inbound call and can be handled by whoever is available within the predetermined call group. What happens if no transfer agent is available? A call cannot be attempted unless the Transfer Agent initiates it therefore an agent is always available and waiting for the next call. Can we use the program to get expressed consent from the customer to place them in future dialer campaigns? Absolutely, once the call is transferred, your associate can use this opportunity to obtain express consent from the consumer. Radius offers a separate calling program to clients, for obtaining a consumer s authorization to call their cell phone. How do we track performance reporting/audits? All RPC s and inbound calls are set up to come through a predetermined phone line at your location. You can also track results by monitoring the files included in the call lists provided to Radius over time. Why is your projected transfer rate so low? The average transfer rate runs between.5 2 RPC s per hour. The rate may appear to be low but that figure is dependent on portfolio type and call list provided. Again driving inbound calls to your associates is where our clients achieve the most benefit. What can we expect in terms of our return on investment? The Return on Investment is averaging between 3-1 and 4-1, but this is dependent on your associate s ability to convert an RPC into dollars. Additionally, boosting the overall performance of your recoveries has other benefits in a competitive environment. 16

Are there reports and scripts available? Radius can provide samples of reporting and scripts that can be viewed, revised and authorized for use. What is the file format needed? The phone numbers or cell phone number files can be sent in a basic flat file. The format will be provided. How many ANI s (Automatic Number Identification or Caller ID) can be set up to display? The number needed is determined by the client. Do we receive uploads of information? Radius will provide daily an upload for all calls dialed and a result code that can be used to update and scrub your data files. Can you cause a screen pop to my associates? Yes, if we can send our transfer call to a device at your location that can pop a screen utilizing inbound ANI we can send the transferred call with the called parties ANI transmitted. 17

Pricing and Cost Comparisons: How is the program priced? The Radius Cell Manager Program complete with Transfer Agent is priced as an all-inclusive rate of $1800 per Transfer Agent per month. The price includes: 1. Radius Cell Manager Technology 4 times the efficiency of keypad dialing (800-1000 calls per day, verses manually hand on keys dialing at 200-250 per day) Your caller ID is displayed on entire list of viable cell phone numbers, to drive inbound calls to your associates!!! Comprehensive reporting Upload file of daily results Wireless Number Identification Service and Ported Number scrubbing of cell phone files Call recording (optional off, on for Transfer Agent activity, on for the duration of the call) Time zone restriction compliance 2. Our skilled Transfer Agent 170 productive hours Right party verification personalized script Warm and efficient transfer of calls Flexible routing to your most skilled associate 3. All telephone LD and SIP charges 4. VoIP connection to offshore Transfer Agents What would be a comparable cost to perform this function onshore? When you include the human, long distance, infrastructure, and software costs it would come out to about $0.84 per dial. The Radius Cell Manager Program comes out to less than $0.10 per dial. What would be a comparable cost to perform this function with my offshore personnel? When you include the human, long distance, infrastructure, and software costs it would come out to about $0.32 per dial. The Radius Cell Manager Program comes out to less than $0.10 per dial. Do you offer alternative pricing plans? The Cell Manager Program can be billed on a productive hour basis or the technology can be licensed based upon the number of associates utilizing the Cell Manager technology. Additional cost to this option would be SIP line for agent audio and telephone charges. Radius can work with almost any carrier and can provide a list to compare rates. How long does it take to implement the program? A Cell Manager Program can be started for you in less than seventy-two (72) hours. 18