The costs associated with building a nationwide wireless
network are immense. Despite this fact, new voice and data service operators
enter the market on a regular basis, often providing consumers with
considerable cost savings for mobile phone and data service. These smaller
carriers are known as mobile virtual network operators (MVNOs). Instead of
attempting to create a wireless network of their own, these companies lease
wireless telephone and data service from established mobile network operators
(MNOs) in their target markets at wholesale rates. In the U.S., these MNOs
include AT&T (NYSE: T), Sprint (NYSE: S), T-Mobile (NYST: TMUS) and Verizon
(NYSE: VZ).
In some cases, MVNOs use their own customer service, billing
support systems, marketing and sales personnel, however, establishing these
resources typically requires a substantial amount of upfront capital.
Alternatively, MVNOs can enlist the services of a mobile virtual network
enabler (MVNE), a business-to-business operation specializing in the planning,
implementation and management of mobile services – including SIM provisioning
and configuration, customer billing, customer relationship management and
value-added service platforms. In this way, startup MVNOs can effectively
outsource management of business and technical operations while benefitting
from the previous experience of the MVNE as a negotiating channel with MNOs.
Elephant Talk Communications Corp. (NYSE MKT: ETAK)
addresses the demand for MVNEs through its proprietary platform. Using market
standard interfaces, the company offers global telecommunication companies and
other service providers a full suite of products and services that enable them
to fully provide mobile telecom services as part of their overall business
offerings.
Earlier this month, Elephant Talk announced an agreement
with the wholesale division of a Tier 1 U.S. mobile operator through which the
operator may procure the company’s innovative MVNO platform services on a
non-exclusive basis. Following this agreement, Elephant Talk is in a formidable
position to provide launch support for a number of MVNO brands moving forward.
The company has already completed the primary integration of its solution
platform with the mobile operator’s systems, and it expects to begin supporting
new MVNO customers in the coming weeks.
“Our selection by a Tier 1 U.S. mobile operator is a major
achievement for Elephant Talk, validating the strength of our technology and
the capabilities of our software platforms designed for the unique needs of
MNOs and MVNOs,” Tim Payne, president of Elephant Talk North America, stated in
a news release. “We have worked closely with this mobile operator to complete
the simultaneous integration of our platform with their systems and are pleased
to report that we are now ready to support a growing number of new MVNO brands as
they are launched on the operator’s network.”
Leaning on the marketability of its technology, Elephant
Talk has established itself as an emerging leader in the mobile space. With
many of the world’s top MNOs and technology firms already amongst its customers
and partners – including Vodafone (NASDAQ: VOD), T-Mobile, Zain, HP (NYSE: HPQ)
and Affirmed Networks – the company is primed to promote sustainable financial
growth for the foreseeable future.
For more information, visit www.elephanttalk.com
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