Connect two, three, four...

Competitive telecommunications service providers know that to distinguish themselves, it often is necessary to target a specific segment of the market. Rapid Link Telecommunications has gained a strong foothold in the IP telephony industry by focusing on an unlikely niche market: the U.S. military.

Military families need reliable, low-cost long-distance service to stay connected with relatives and friends, said Jim Butorac, vice president of marketing for Rapid Link. "We have a strong presence in countries with large concentrations of U.S. military personnel, like Germany and Japan. We compete against MCI [WorldCom], AT&T and Sprint, but they generally offer calling-card services and not callback services, like we do," he said.

Rapid Link's WorldSaver International Call Back service offers military personnel and others living outside the U.S. access to the affordability and quality of U.S. telecom systems. The user dials a phone number assigned by Rapid Link and after two rings, disconnects. The Rapid Link system immediately calls the user back with a connection on a U.S. line, and the user dials the area code and number of the party to be called.

"There are other callback providers, but they tend to be local providers that do not have an international presence. Rapid Link is a bridge to both markets," said Butorac.

Rapid Link, which was founded in 1993 by former military paratrooper T. Dewey Wise, relies on several marketing strategies to target consumers. The company advertises in military publications and recruits on-site sales agents, who are often spouses of military personnel, to sell its services.

In addition to the callback service, Rapid Link offers HomeLink, which allows individuals living abroad to establish a toll-free service for use by select callers within the U.S. Residents living in the U.S. dial into the company's 800 number, where voice prompts ask them to relay an assigned five-digit authorization code to complete the connection. The call is similar to a collect call because the person on the receiving end is billed for the connection. Because the HomeLink service allows users to avoid the hassle of foreign codes and operator-assisted calls, Rapid Link markets the service as a convenient way for a member of the military to stay in touch with relatives.

"HomeLink offers psychological comfort to users because they know no matter where a loved one is or what the situation is, they can be easily reached," Butorac said.

Rapid Link offers domestic and international termination rates on a wholesale transport or IP clearinghouse basis to switched-based resellers. This past January, the company deployed Clarent's voice-over-IP products in its international network.

"Clarent has a strong relationship with Rapid Link," said Heidi Bersin, senior vice president of corporate marketing for Clarent. "In addition to our competitive back-end system and our high voice quality, we offer Rapid Link the opportunity to establish valuable relationships with our other customers," she said.

The installation of the IP-based network is part of Rapid Link's plan to have 50 voice-over-IP gateways operational throughout Asia, Europe and the U.S. by 2000.

Rapid Link also plans to expand its domestic local network to offer discount services to military personnel stationed or returning to the U.S. and to civilians living in cities near a military base.

The military market makes up 90% of Rapid Link's customers, Butorac said. "But we are expanding to target ethnic communities in areas where we already have local networks. For example, in San Diego, we have a high percentage of Philippine customers, and in Atlanta, we have high numbers with the Indian and Chinese communities," he said.