Mobile email, instant messaging and data synchronisation provider Synchronica PLC (AIM: SYNC) said a mobile operator in Panama has signed a contract to offer the mobile email product Mobile Gateway to its more than 1.6 million user subscriber base.
The agreement with the operator is for the first subsidiary of a multi-national group and has led to discussions about a group-wide framework agreement with the headquarters of the group. The contract has been secured through Synchronica's distributor Brightstar Corp and is the sixth mobile operator win in Latin America and the seventh contract announced by the company in 2010.
Under the contract, the operator will pay Synchronica a perpetual license fee of up to US$4.56 per registered user. Synchronica will receive further revenues from professional services for customization and training on Synchronica's products as well as recurring revenues for hosting and support services.
Synchronica's industry-standard technology requires no additional software to be downloaded to the handset and enables push email for the broadest range of handsets, from high-end Smartphones to the MessagePhone and low-cost level devices.
This contract is the fourth win through Synchronica's strategic distribution partner, Brightstar, specialised in customised distribution and supply chain services for the wireless industry.
With one of the most advanced telecommunications markets in Latin America, Panama's mobile telecommunications market has recently increased with the emergence of new operators and the consumption boom in Panama, According to research, the Panama economy grew 3 percent, 2.2 percent and 1.1 percent in the first, second and third quarter of 2009 respectively and Panama remains one of the few countries in Latin America that grew in 2009. As such, Panama is a market Synchronica sees as having growth potential for its technology.
Chief executive Carsten Brinkschulte said, "We ... feel there is very good potential for further demand from this operator, in particular as this contract win can lead to a group-wide framework agreement covering all subsidiaries. Latin America is key to our strategy of becoming a market leader for next generation mobile messaging services in emerging economies and hence we are very pleased to further increase our market share in this region. This contract win further illustrates that operators are increasingly recognizing the value of our products as a way to address declining ARPU (average revenue per user) and to combat the level of churn that plagues emerging markets."
Only last week, the group announced a purchase order from a mobile operator in Argentina for the Mobile Gateway product, also secured via Brightstar. The Argentine operator will pay a service fee of up to US$0.36 per registered user per month. Synchronica will also provide professional services for customization, deployment and training of Synchronica products which will be charged on a time and material basis. The operator will use Mobile Gateway technology to offer a push email and synchronisation service to its more than 13 million subscribers and is scheduled to launch the service in May 2010 with a trial period free of charge to the end-user to promote the service.