AIM listed mobile email specialist Synchronica Plc (LON:SYNC) saw its shares surge by more than 13% to 2.1p this morning on the news that it had signed a deal with a mobile operator in Argentina for its award winning product, Mobile Gateway. The purchase order was secured through Synchronica's distributor Brightstar Corp. and is the fifth mobile operator win in Latin America and the sixth contract announced by the company in 2010.
Under the terms of the deal, the operator will pay a service fee of up to US$0.36 per registered user per month. Synchronica will also provide professional services for customisation, deployment and training connected to its products which will be charged on a time and material basis.
The operator will use Mobile Gateway to offer a push email and synchronisation services to its subscriber base of more than 13m customers, and is scheduled to launch the service in May 2010 with a trial period free of charge to the end user to promote the service. This contract is the third win through Synchronica's strategic distribution partner, Brightstar, which is a major player in customised distribution and integrated supply chain solutions for the wireless industry.
Carsten Brinkschulte, Synchronica’s chief executive, said: “Our fifth contract win in this region clearly demonstrates the attractiveness of Synchronica’s Mobile Gateway product in offering mass-market data services on the entire mobile phone device range, from high-end to low-end mobile phones. Mobile phone penetration in Argentina is already the highest in the region, however by introducing data services to the mass market, the operator can use Mobile Gateway to help increase ARPU and tackle the level of churn present in emerging markets.”
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 low-cost entry level devices. According to research compiled by the IE Market Research Corporation, subscriber growth in Argentina during 2008 was 13.1% ahead of the industry average. IEMR forecasts that total wireless subscribers will increase from 43.6m in 2008 to 48.8m in 2013.