Syntonic - Tata License > $84mil pa ?, page-59

Just relistening to the webinar again and in particular the freeway revenue structure:


I picked up something I didn't quite get before in regards to the Tata Communications agreement:

a) Tata has a licensing agreement with Syntonic - So Tata being the mobile operator has to pay Syntonic 20% net sponsored data surcharge ( tarriff )...in the eg. above for every 1GB/month/sub of additional data that the mobile operator receives in terms of increase traffic can generate US$37.5m p.a.

b) Syntonic also receives - 1) download bounty US$2/app download
2) 10% commission for transaction using sponsored data.

Let's think about this for a moment:

If a kid in Indonesia uses the freeway to download "clash of clans" and plays it, if that kid doesn't have to pay for data..how long would he/she keep playing? How many gigs of data would be used?

Revenue for Syntonic:

a) $2/app download paid by Supercell ( game app developer )
b) 10% commission from supercell for any advertising or in game purchase revenue
c) Supercell pays Tata for the data usage which Tata the pays 20% to Syntonic for creating increased revenue through more data usage.

Now you can see why the Tier 1 mobile operators and Content providers are queueing up to get involved with Syntonic in this win/win/win/win scenario..What an awesome business model...