Dear Partners:

You probably heard the news this week, as we did, that a well known provider servicing the telecom channel has filed for bankruptcy protection. It was certainly a shock to us and many agents we have spoken to have expressed concerns regarding continued, reliable service for their customers and the uncertainty of the bankruptcy process. Considering that AireSpring is well known as a premier provider of telecom services to the Agent channel, we wanted to provide our partners with clear information about the financial strength and strategic direction of AireSpring.

This year, AireSpring turned 10 years old. It is truly amazing how time flies when you are doing something that you truly enjoy. At the same time, we hit a new record for profitability and total revenues. In fact, AireSpring is 100% debt free, cash-flow positive, profitable, and rapidly growing. AireSpring maintains outstanding credit relationships with all of its underlying providers, and our Balance Sheet is exceptionally strong with top-notch metrics. During the painful recession, AireSpring didn’t scale back or conduct a single layoff. What we did do was grow; conservatively but nonetheless significantly.

More than five years ago, we evaluated the marketplace, technology shifts and competitive landscape, and came to the conclusion that the days of the pure reseller were numbered. We made the decision to invest time, resources and especially capital into building out our own advanced, IP Voice and MPLS Mesh network. It was definitely challenging to mold ourselves from a switchless reseller into a carrier responsible for engineering and operating our own voice and MPLS network with multiple NNI’s (Network to Network Interfaces) into numerous carrier networks and POP’s. Today, that decision is paying off for AireSpring. Over the last four years, we’ve built an award winning, fully managed, next generation IP backbone which has allowed us to innovate all sorts of new IP based products and services. And we’ve nearly doubled in size during that period. More than twice as many customers, twice as many employees, four times as profitable, and we have quintupled agent bonus incentive payments.

As a tightly focused, privately held company, we have been able to make the decisions which protect our financial interests and yours. Conservative in our finances, but industry-leading in our product and technology focus. As an owner-operated enterprise, our executive team is directly involved with just about every facet of the business. I always look forward to working with our agents and customers to find innovative solutions that may be outside of the scope of our competitors. Our processes and procedures have been designed with the channel in mind. We offer evergreen commissions, lucrative compensation opportunities, fresh products and services and a direct line to our senior management. We certainly do our best to deliver an outstanding experience to both our agents and customers. But when something does go wrong, our agents know that they can reach out to our executive team and ownership to get direct involvement and resolution.

We want you to know that AireSpring is different than other providers in the marketplace and we certainly hope that our valuable agents do not consider AireSpring similar to other providers having difficulty at this time. AireSpring has long ago left the realm of a pure reseller, and less than 35% of our business today originates from our reseller origins. We are energized about the future, and we invite you to be a part of these exciting times in telecom as we move into a new world of unique services that are only a reality because of the shift to a cloud-based architecture utilizing SIP for our voice infrastructure. We’ll always be here for you when you need us and we’ll be there with the service, support and compensation that you have come to expect from AireSpring.

Thank you for your business in the past, and we look forward to your business in the future.

Most sincerely yours,

Avi Lonstein
AireSpring CEO