Synchronica Plc (LON:SYNC), the company that provides push email, instant messaging and social networking services, said this morning that it had received all the relevant counter-signatures and purchase orders connected to a contract with a pan-African mobile telecoms operator. The deal was originally agreed in December 2009 but was later heavily delayed because the operator became involved in acquisition discussions. Further delays in completing the deal meant Synchronica was forced to reduce its full year guidance in March.
The operator has now signed a group-wide framework agreement for Synchronica Mobile Gateway covering all subsidiaries in Africa and issued purchase orders worth US$752,000 for professional services and initial licenses required for a pilot launch. Synchronica said it expected the operator to launch Mobile Gateway shortly across all subsidiaries and that expansion orders for further licenses would be forthcoming in due course. Shares in Synchronica responded with a 5.4% rise to 19.5p.
Commenting on the contract, Carsten Brinkschulte, the chief executive of Synchronica, said: “We are very pleased to have finally completed this deal. We look forward to a successful product rollout in Africa and have the opportunity to introduce our sought after push email, instant messaging and social networking services across the enlarged group.”
According to a study by business advisors Ernst and Young, ‘Africa connected - A telecommunication's growth story’, the African region is one of the fastest-growing mobile markets globally. Historical under-investment in telecommunications has rendered fixed line telecommunications largely insignificant, and average mobile penetration across the continent stands at 37%, expected to rise to 61% by 2012. Demand for mobile data services in the continent will continue to gain in popularity.
About the Author
Stockopedia News
0 comments
