Synchronica plc – Sixth contract win in Latin America

Sixth contract win in Latin America
 
Synchronica plc, the AIM listed mobile email, instant messaging and data synchronisation provider, announces that a leading mobile operator in Panama (“the Operator”) has signed a contract to offer the award winning mobile email product Mobile Gateway to their 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 $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 Corp., a global leader in value-added distribution and services & solutions in 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 (Source: Panama Economy Insight, Nov 2009). The Panama economy grew 3%, 2.2% and 1.1% 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 (Source: Panama Economy Insight, Feb 2010). As such, Panama is a market Synchronica sees as having growth potential for its technology.   
 
Carsten Brinkschulte, CEO of Synchronica, said, “We are pleased with this new contract win as 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 and to combat the level of churn that plagues emerging markets.”