New customers

[admin]

PARETEUM WINS $22 MILLION CONTRACT WITH DIGITAL CURRENCY WI-FI PROVIDER

Posted On: April 02, 2019

Pareteum Corporation (Nasdaq: TEUM), a rapidly growing global cloud software communications platform company with a mission to connect every person and every(thing)TM, today announced a new sales transaction worth in excess of $22 million over 36 months.
The new contract will see the Pareteum solution enabling rapid global expansion for an innovative digital currency-based connectivity solution for consumers.
Pareteum’s new customer is building a global blockchain-based Wi-Fi sharing community. Members can mine tokens by sharing their Wi-Fi, whether residential or within commercial locations, and use those tokens for Wi-Fi connectivity at other locations within the network.
Access to Pareteum’s global smart Wi-Fi network has been embedded in the mobile app provided by Pareteum’s new customer to its users, allowing them to redeem tokens for seamless connectivity at numerous high-demand public locations in the transport, leisure, hospitality, and retail sectors across the world.
End users will also be able to access Pareteum’s extensive global in-flight footprint.
Pareteum is unique in being able to offer a single, global Wi-Fi network, delivering immediate scale without the need for customers to negotiate and provision numerous individual network agreements, which can significantly delay time to market.
The customer launched Pareteum-enabled services on April 1st, 2019 as part of a 36-month contract.
Rob Mumby, Chief Revenue Officer for Pareteum, said, “The use of blockchain technology to transform Wi-Fi into a new currency for a global community is a perfect fit with our company vision of communications re-imagined, and we are ecstatic to power rapid global expansion to this new model. Our cloud solution delivers full spectrum communication services from a single source, and we look forward to being a great strategic partner to our new customer.”
Pareteum’s cloud platform delivers a complete, API-driven solution for Enterprises, Communications Services Providers, and the IoT market through developers and their applications. It combines connectivity, including mobile service management (prepaid and postpaid services) with smart-managed, global Wi-Fi and cellular access, including full operational support, as a service.
Christine Braelow, Pareteum’s Vice President, Global Sales, for Enterprise and Brand commented, “Pareteum’s global cloud solution offers tremendous flexibility and it is hugely exciting to see the many ways our customers use it to drive value and market disruption. We are delighted to be working with such a dynamic new customer.”

[admin]

Here is an interesting thought. The last two days involved iPass WiFi network and tech, we surmise that there were quite a few potential customers interested (after all, iPass has the largest WiFi hotspot network in the world) but held off because of the precarious finances of iPass.

Within Pareteum (and generating $15M of cost synergies), these concerns evaporated and now the deals come in pretty rapidly, like Citrix last week and now this Blokchain deal..

[Mrebs]

good point the IPAS acquisition is looking better daily! Hopefully they can continue at this rate with these deals, if I remember correctly these generally start generating revs quickly as well!

[admin]

Yes, iPass was a very good acquisition, killing several birds with one stone:

• 75 engineers who can immediately help connecting customers
  
• $15M in cost synergies
  
• Getting the largest WiFi hotspot network in the world and top offload technology (automatic offloading traffic from mobile when a WiFi hotspot is in range, without having to log on, that is, seamless).
  
• iPass 500 enterprise customers a very interesting new segment for Pareteum
  
• Cross selling opportunities
  
• Making iPass viable again financially, which held customers back.
  

[admin]

Thanks Mike, this is becoming an avalanche. We are what, at $900M or so now, likely to hit $1B in 36 month backlog in H1 this year, which is a bit of a bonanza, basically..

Sooner or later the stock price will follow..

[admin]

Yes, it's a matter of when, not if the price will rise to reflect the realities on the ground. People who don't have a position should consider that revenues will follow backlog, but with a long lag with most of the revenues only materializing in the third year. This provides a tremendous opportunity to still get in still, IMHO.

[admin]

Here is another thought:

iPass had a legacy corporate business consisting of 500+ corporate customers, but this business was slowly declining. Recently they closed two big deals, one with Citrix and one with a streaming media company. 

Could it be that these corporate customers will return and renew, and new corporate customers can be added simply because iPass' future is now guaranteed under Pareteum, while they were struggling on their own, which is likely to have scared off some potential customers?

Then there are the cross-selling opportunities with Pareteum's customers..

The iPass acquisition might turn out as one of the smartest ones around..