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Single Touch (OTC BB: SITO):
Touching 2.5 Million New Subscribers in Mexico |
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Monday's new idea- Single Touch,
was introduced at $2. We've been up as high as $2.40 (20% in
four days), keeping my recent winning streak intact.
However, I suspect this particular
win is going to win a lot bigger than a mere 20% in the early going.
Today's post close news ought to stand the market on its ear. We're just
on the forefront of a new frontier for this relative unknown. Between AT&T
(NYSE: T), WalMart (NYSE: WMT), Sears (NASDAQ: SHLD), and a host of
others, they are playing ball in the land of the giants, and we'll likely
see money start to pour into their coffers.
First of all, you have to get the
difference between voice and data for the cellular companies. Voice is
talking. Data is everything else. Web browsing, SMS text messaging, ring
tone downloading, emails, IMs- all of it is data transfer, and this company
has several killer applications and the network to handle it.
Before we get to today's breakthrough
news, consider the following. The voice side of the market for cellular
is not today's growth driver. Over the past three years, wireless
revenues have increased 18%. However, with the widespread use of
Blackberries, iPhones, and a whole menu of the new smart phones, both data
demand and revenue have increased 63% over the same time frame.
So- how do you know if these guys
are the real deal? Well, today's news should provide a pretty robust hint.
You can look at the company they keep, and start thinking about the future.
Everyone knows the name Nextel.
They were the pioneers in the walkie talkie type two way phones, perfectly
suited for instant communication and open lines in the work environment.
Their unique technology worked a lot like the way a taxi cab dispatcher
communicates with his cabs.
Nextel became a world wide
name, and was eventually acquired by Sprint. Nextel Mexico,
a wireless company with 2.5 million subscribers, was not
part of the Sprint acquisition.
Instead, Nextel Mexico is
now a division of NII Holdings (NASDAQ: NIHD). NIHD has been
sprinting of late itself- up from $14 to $17 in the last three trading
days. NIHD, boasting 13,000 employees and $4.26 billion in
revenue last year (up 29%), got all of Nextel's operations outside
the US in the Western Hemisphere. They have cellular service in Mexico,
Brazil, Argentina, Peru, Chile, and Canada.
As it turns out, Nextel Mexico
has
decided to use Single Touch systems to handle all of its Data Services.
Starting in June, when any Nextel Mexico subscriber sends a text
message, surfs the internet, or receives an email, the data will flow through
SITO.
And- of course, SITO will get paid for handling the data in a sector
growing 63% annually.
And, Nextel Mexico plans to
begin implementing the Abbreviated Dial Codes program in concert with what
AT&T
is
doing with SITO in the United States.
The Nextel Mexico contract
is huge for SITO, and once implemented will lead to multiple revenue
streams as services are added over time. 2.5 million users right out of
the gates.
Perhaps I should raise my price target
of $5. It will be under consideration if we get more news
like this.
Here is the entire text of today's
news:
Press Release Source:
Single Touch Systems, Inc.
Single Touch Systems
to Launch Data Services Platform for Nextel Mexico
SAN DIEGO, April 2 /PRNewswire-FirstCall/
-- Single Touch Systems, Inc., (OTC Bulletin Board: SITO - News) is pleased
to announce the launch of its billing and data services platform with Nextel
Mexico in June of 2009. Single Touch is a leading innovator in mobile commerce
solutions and Nextel Mexico is one of North America's leading providers
of fully integrated wireless communication services. Once deployed, Nextel
Mexico will introduce the Single Touch Abbreviated Dial Code (ADC) platform
as an added feature of Nextel Mexico.
An Abbreviated Dial Code
enables consumers to easily use their mobile phones to connect to businesses
by simply dialing a three to six digit alphanumeric number prefixed by
the # or * key. Single Touch is the industry leader of Abbreviated Dial
Codes in America with ongoing marketing programs active with Black Entertainment
Television, #BET, and Sears, #SEARS.
Nextel Mexico, a division
of NII Holdings Inc. (Nasdaq: NIHD - News), delivered $4.26 billion in
total revenue and grew 29% in 2008.
"As the provider of billing
and data and other services to Nextel Mexico, we are looking forward to
implementing our data services as well as enhancing their current services
through our advanced technologies," says Anthony Macaluso, Founder and
CEO of Single Touch Systems, Inc. "We are currently in the process of installing
the necessary equipment, as well as finalizing systems synchronization
to launch commercial operations with Nextel Mexico."
Nextel Mexico, headquartered
in Mexico City, currently offers a fully integrated wireless communications
tool with digital cellular voice services, data services, wireless Internet
access and Nextel Direct Connect and International Direct Connect, a digital
two-way radio feature. The partnership with Single Touch will not only
allow Nextel Mexico to attract new subscribers through enhanced product
and service offerings, it will also allow them to serve established customers
more effectively in existing markets.
About Single Touch Systems
Single Touch Systems,
Inc. (SITO) provides wireless operators, consumer brands, and retailers
with innovative mobile commerce delivery solutions. Single Touch enables
consumers to easily use their mobile phones to connect to businesses by
simply dialing a short branded phone number, or Abbreviated Dial Code (ADC).
Single Touch's ADC platform can be customized to the needs of brands and
retailers, and facilitate operator direct billing for all services. Abbreviated
Dial Codes, Mobile Coupon Platform, Listen Live Now, and other programs
position Single Touch as a leader in mobile commerce solutions linking
wireless with on-line and brick and mortar business, and leveraging the
paradigm shift in how people use their mobile devices. In doing so, Single
Touch drives revenue for operators, retailers and brands and streamlines
purchasing options for the end user.
For more information,
please go to www.singletouch.net.
About Nextel de Mexico
S.A.
Nextel de Mexico is one
of the world's leading providers of fully integrated wireless communication
services designed to meet the needs of business customers in selected international
markets. Nextel Mexico is headquartered in Mexico City, having begun operations
in the country in August of 1998.
Nextel Mexico has been
recognized for their accomplishments in business and social responsibility.
Nextel Mexico was ranked as a Top 10 Latin American Telecom Operator by
Frecuencia magazine two years in a row. In addition, Nextel Mexico ranked
as one of the Top 100 Multi-National Companies in Mexico by Expansion magazine
and was recognized for the third consecutive year as a Socially Responsible
Company by the Mexican Center for Philanthropy and AliaRSE (Alliance for
Enterprise Social Responsibility) for their "Mucho Mas por los Ninos" (Much
More for the Children) alliance with UNICEF.
Cities of operation include
Mexico City (Federal District), Acapulco, Celaya, Irapuato, Salamanca,
Chilpancingo, Cordoba, Cuautla, Cuernavaca, Guadalajara, Guanajuato, Lagos
de Moreno, La Piedad, Leon, Monterrey, Morelia, Nuevo Laredo, Orizaba,
Puebla, Queretaro, San Luis Potosi, San Juan de Rio, Tijuana, Tlaxcala,
Toluca, and Veracruz. For more information, please visit www.nextelinternational.com
Contact:
Tom
Hovasse
Single
Touch Systems, Inc.
thovasse@singletouch.net
760
438-0100
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