Addvantage Technologies Group Inc 's

The overall telecommunications equipment industry is highly competitive. We compete with numerous resellers in the marketplace and declines in the economy have reduced the amount of capital expenditures in our industry, which heightens the competition. In addition, especially for the Cable TV segment, we sell current production products in competition with the OEMs.

Cable TV Segment

We believe we have differentiated ourselves from the OEMs, other resellers and repair operations in the marketplace in the following ways:
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we sell both new and refurbished Cable TV equipment as well as repair what we sell, while most of our competition does not offer all of these services;
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we stock both new and refurbished inventory;
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we stock a wide breadth of inventory, which many of our competitors do not due to working capital constraints;
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we can reconfigure new and refurbished equipment to meet the different needs of our customers;
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we can meet our customers’ timing needs for product due to our inventory on hand; and
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we have experienced sales support staff that have the technical know-how to assist our customers regarding solutions for various products and configurations.
In terms of sales and inventory on hand or available via our supply channels, we believe we are one of the largest resellers in this industry, providing both sales and service of new and refurbished Cable TV equipment.

We also compete with our OEM suppliers as they can sell directly to our customers. Our OEM suppliers have a competitive advantage over us as they can sell products at lower prices than we offer. As a result, we are often considered a secondary supplier by large MSOs and telephone companies when they are making large equipment purchases or upgrades. However, for smaller orders or items that are needed to be delivered quickly, we often hold an advantage over our OEM suppliers as we carry most inventory in stock and can have it delivered in a shorter time frame than the OEM.

Telco Segment

For the Telco segment, we believe our differentiation from other resellers in the marketplace is primarily the following:
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we stock a broad range of used inventory, which allows us to meet our customers’ timing needs;
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we have experienced sales support staff that have strong relationships with our customers and technical knowledge of the products we offer;
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we have the following quality certifications: TL9000 (telecommunications quality certification), ISO 14001 (environmental management certification), OHSAS18000 (occupational safety and health management certification), and R2 (EPA responsible recycling practices for electronics); and
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we provide multiple services for our customers including deinstallation and decommission of products, storage and management of spares inventory and recycling.