05-31-2020, 06:09 AM
- Capital light business model, selling to carriers exclusively, leveraging decades of relations.
- Hardly any S&M cost as they sell white label apps to carriers.
- Three product lines, with very high gross margins.
- SafePath family safety application running on Sprint (S) and the prepaid arm of Sprint, Boost mobile with a revenue sharing model.
- SafePath (Safe&Found under the Sprint label) also adds an IoT version which has successfully enabled a product tracker, which Sprint is selling like hotcakes and the (monthly recurring) revenues are also shared with Smith.
- In IoT products will be launched in addition to the tracker.
- Sprint is now part of T-Mobile, and since Smith Micro bought the carrier business of Circle Media Labs, it now essentially has a relation with T-Mobile, as well as effectively eliminating the main competition for T-Mobile's business.
- It is merging the best of SafePath and Circle Media (which has excellent parental controls) to arrive at a unified solution for the whole of T-Mobile/Sprint, although it remains to be seen under what contract (the revenue sharing contract with Sprint is substantially better than the fixed payment contract between T-Mobile and Circle Media).
- It also makes Sky UK a customer of Sprint, as Circle Media's family safety product was running there as well.
- Boost will likely be acquired by Dish which is supposed to evolve into the fourth US carrier.
- The vision is for SafePath 7.0 to combine SafePath Family, IoT and Home, running on the 5G routers, enabling the carriers to take on the cable companies and emerge as a serious ISP.
- In talks with multiple other carriers, per