In August 2006 we attended a presentation hosted by Marcel Gelineault, National Sales Manager of Alpha Multimedia, for an investment opportunity offered with the purchase of a Communication Kiosk. In the presentation they claimed to be in association with Bell Canada and that they planned to setup 700 Kiosk machines all over Canada by 2008.
They claimed that the Kiosk would generate income in the following ways.
Through advertisements of big organizations with whom they already had contracts.
Through internet usage, video email and through gaming.
It will also include multiple services, and it would be upgraded to use VOIP phone, Wi Fi, and e-ticketing.
At the time of presentation I was told that these Kiosk will be installed in prime locations such as major shopping malls, Govt. public places such as Airports, Hospitals, Hotels, Health registration, Driving registration, Passport offices, Transit locations, Colleges / Universities and other busy areas to ensure maximum consumer exposure for the communication Kiosk and its digital advertisement etc.
The cost of one Kiosk was $18, 000 including $1, 000 location fees plus taxes. I was told and read in the literature that I would get my Investment back in 6-8 months.
During the presentation I asked them to provide me with the statement of income of the current kiosk machines installed in different locations and the list of available locations, in response they said that it would be provided after the agreement.
One of the things that gave Alpha Multimedia credibility at the time was that they stated in their presentation and in their literature that they had partnered up with Bell Canada. If a huge corporation such as Bell Canada was allowing them to use their name/logo then they must be legitimate.
The 'Turnkey Business' consisted of providence of a location, kiosks with: Public Internet Access Voice over IP payphone, Games, Wi FI Wireless Internet Access, Video email, advertising and all the required software and hardware to have all these features and remote monitoring.
The location, installation, operation and maintenance of the kiosks were the responsibility of Alpha Multimedia.
we had an agreement on 14 August 2006 and bought 4 Kiosks a total investment which was worth 80, 000.Which we borrowed from the bank.
Once they received the payment they did not provide me the statement or any list of available locations. we called them several times to provide me the list of locations and I was told that they were working on it and did not have any locations available.
After 15 weeks we were told to choose Petrocanada locations otherwise we would have to wait for an indefinite period. we talked to Sales Manager Marcel and he said not to worry, even if the machines had been installed in the basement car parking and that Alpha multimedia had advertisement contracts that would generate enough income. we were not satisfied. Our machines should be installed within 8 -10 weeks but took 17 weeks and only become operational in Jan 2007.
we also called customer service and reminded them about our email. we mentioned that these locations were not creating any revenue.
Pilla
misiissauga, Ontario
Canada
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