Telecom News --

Synchronica signs Initial USD 500,000+ contract with African Handset Manufacturer

Royal Tunbridge Wells, UK, 05 January, 2011

• Initial deal value includes software licences (USD 400,000) plus first-year service fees (USD 123,000) plus a monthly per-user hosting fee
  
  
• The 2010 deal with paperwork concluded in 2011 is the 33rd customer for Synchronica in the MEA region
  
  
• The device manufacturer plans to launch a range of affordable, MediaTek-based handsets bundled with Mobile Gateway 5 in the African market in the first quarter of 2011
  
  
• Deal underlines Synchronica's strategy of targeting device manufacturers, as well as mobile operators in emerging markets, with its mobile messaging software

Synchronica plc (AIM: SYNC, TSX-V: SYN), the international provider of next-generation mobile messaging services, has secured an initial contract worth more than USD 500,000 with a device manufacturer targeting the African mass market.

The device manufacturer will bundle the white-labelled Synchronica Mobile Gateway with a number of MediaTek-based handsets, enabling consumers in Africa to experience a BlackBerry-like service on a range of low-cost devices.

The deal comes just days after the announcement of an initial USD 1.25 million+ contract with an Indian handset manufacturer and consolidates Synchronica's position as a vendor of choice for both device manufacturers and mobile operators in emerging markets.

Today's win 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.

Tremendous Potential for Subscriber Growth in Africa

Synchronica is already a significant player in the fast-growing market for mobile data services in the MEA region, with 31 of its more than 70 customer wins to date coming from this region.

According to the Informa report Africa's Mobile Telecoms Market (April 2010), there is tremendous potential for subscriber growth in Africa given that there were just over 450 million active subscriptions across the region at the end of 2009, a penetration rate below 45 percent.

The significant market potential in Africa is illustrated by Informa's forecast that mobile data revenues will rise from USD 4.45 billion in 2009 to USD 10.64 billion in 2014.

Carsten Brinkschulte, CEO of Synchronica, says: "This latest contract win underlines how well suited Synchronica's advanced messaging solutions are for handset manufacturers and mobile operators in high-growth emerging markets who want to differentiate their offerings through value-added services."

"This is the second contract in a matter of days from an emerging markets-based device manufacturer using the MediaTek platform. Synchronica Mobile Gateway appeals to device manufacturers because it supports any handset and can be bundled easily and cost-effectively to deliver an attractive range of phones aimed at the mass market", Brinkschulte adds.

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