Telecom News --

Synchronica inks deal with Top Ten Indian handset manufacturer

Royal Tunbridge Wells, UK, 05 January, 2011

• Substantial contract win will see the handset manufacturer bundling Mobile Gateway 5 with its MediaTek-based handsets to offer Indian consumers a BlackBerry-like solution
  
  
• Deal underlines Synchronica's strategy of targeting device manufacturers, as well as mobile operators, with its advanced mobile messaging software
  
  
• Initial deal value for software licences in excess of USD 1 million plus at least USD 250,000 of service fees during the first year
  
  
• Synchronica already has live installations with two of the largest mobile operators in India (via the Iseemedia acquisition, October 2010)

Synchronica plc (AIM: SYNC, TSX-V: SYN), the international provider of next-generation mobile messaging services, has further boosted its position in the high-growth Indian mobile market through a contract win with a top ten Indian device manufacturer.

The device manufacturer will bundle the white-labelled Synchronica Mobile Gateway with a number of handsets, enabling consumers in India to experience an affordable BlackBerry-like service on a range of devices.

The substantial deal will provide Synchronica with a monthly per-user hosting fee in addition to licence fees and a twelve-month support and maintenance contract. Mobile Gateway will enable the device manufacturer to provide users with mobile email, calendar and contacts synchronization, and instant messaging, as well as connectivity to social networking sites and RSS feeds.

Synchronica already has a strong foothold in India; the company signed a reseller contract back in March 2010 with another Indian device manufacturer and also has live installations with two of India's largest mobile operators as a result of the Iseemedia acquisition last October.

Non-Voice Market in India Will Exceed USD 13.8 Billion by 2014

India represents a major target market for Synchronica. India's mobile subscriber base grew by 16.3 million connections during May 2010 to take the total number of subscribers to 617.5 million, according to statistics from the Telecom Regulatory Authority of India (TRAI).

This equates to a mobile teledensity of just 52.3 percent, meaning that the market will remain a high-growth one for the considerable future. According to Informa, the value of the cellular non-voice market in India will exceed USD 13.8 billion by 2014, with messaging services contributing approximately 30 percent of this total.

Carsten Brinkschulte, CEO of Synchronica, says: "The Indian mobile market is fascinating. Mobile teledensity is still only just over 50 percent, mobile penetration is continuing to grow extremely fast, prepaid dominates, and competition among device manufacturers and mobile operators is intense."

"As a result, device manufacturers and mobile operators in India are turning to value-added suppliers, such as Synchronica, to differentiate themselves from their competitors."

"We are pleased to see our strategy to enable messaging for mass market device manufacturers unfold, in particular using the MediaTek platform. As one of the few companies to provide advanced messaging software that works on any handset, Synchronica is well placed to continue to win contracts in this region", Brinkschulte adds.

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