Ann: Syntonic Launches OTT Content Services in the U.S., page-6

Highlights:
• Freeway Overpass, available to over 140 Million AT&T and Verizon customers, provides the world’s first cross-carrier content plans with unlimited mobile access to a broad range of subscription packages from individual apps to skinny content bundles
• Syntonic plans to launch the Overpass service in other geographies later this year
• The Company has successfully renegotiated a 20% reduction in AT&T’s wholesale data pricing to further reduce its content services’ delivery costs

Seattle, Washington – Syntonic Limited (“Syntonic” or “Company”) (SYT.ASX), a mobile platform and services provider, is pleased to announce the launch of Freeway Overpass – the first cross-carrier, over-the-top (“OTT”) subscription service that offers unlimited mobile access for the most popular mobile content and applications to over 140 Million AT&T and Verizon customers. Overpass content plans complement mobile operator’s data-plans by providing unlimited access to content and apps for a specified time, such as a day, week, or month. Overpass saves consumers’ money by giving them the flexibility to choose unlimited access for the specific apps and content they are most interested in. Plans start at US$0.99 per day and feature a cross-section of popular video, music social media apps and games.

Today’s mobile users are hungry for more flexible, personalized data plans. According to the CTIA, Americans used more than 13 trillion megabytes of data in 2016, or the equivalent of 1.58 million years of streaming HD videos. As mobile data consumption continues on an upward trajectory, more and more consumers will struggle with the costs of upgrading their basic data plans to a higher tier or a fully unlimited plan. Freeway Overpass™ is a cost-effective solution for consumers to flexibly access the content that they want.

Freeway Overpass is available today by downloading the Freeway app on Google Play Store, followed later in July on the Apple App Store. This initial commercial release will be limited in distribution within the U.S. market, allowing Syntonic to address early customer feedback before broadening the U.S. reach with its marketing campaigns by early August. Later this year, Overpass will expand into other geographies with an updated application interface (UI) optimized for OTT content services. Additionally, the Freeway Campaign Manager™ will allow any content service provider or application publisher to offer their content as a cross-carrier, unlimited access subscription.

Consumers can purchase Overpass content plans directly from the Freeway application. In the case where the offer includes a premium content subscription, for example Hulu or Netflix, Syntonic retains an affiliation fee from the premium content provider. The two principle costs for the Overpass service are customer acquisition and the wholesale data purchase from mobile carriers. Based on Freeway’s in-market learnings, Syntonic will reduce acquisition costs through direct demographic targeting and an emphasis on social media marketing. Most recently, Syntonic successfully completed a renegotiation with AT&T, resulting in a 20% reduction in the Company’s wholesale data costs."