@MBS
Hi MBS,
Thanks for your post.
You wrote;
In my opinion, the 2 CORONA sign-ups are still in their infancy in the context of 'real-world' application. From what I understand, so far they're inside/around 12 months old...? (I stand to be corrected if not)
Yes they still are in their infancy. Company announced the two sign ups on the 18/06/15 the company highlighted that Eni employs more than 84,000 people in 83 countries and yes correct Eni has a significant presence in Australia. Eni has signed a paid pre-contract evaluation for its
Perth based executives. The company also highlighted that both Eni and Griffin Coal will pay Norwood a fee of approx $45c per roaming call minute. My attention however is on what was highlighted on page 43 of the Prospectus under the sub-heading Monetisation Strategy & Pricing. Take note of the corporate bulk billing flat rate plan option of AUD $45.00 per month per user
for a minimum of 100 users. That equates to $4.5k per month x 12 months = AUD $54k for 100 users within an organisation. The $45c per minute for this product will serve as a 'door opener' to building a much stronger business relationship with these organisations and also provide them with a much more efficient pricing model long term. Show them savings first, so that they can see the greater benefits before converting to the efficient bulk monthly payment option of $45 per month. Upping the number of users using the CORONA platform will be one of the most important metrics from here. My attention is on what chunk of each organisations' users Norwood will be able to get onboard the CORONA platform. Even a mere 1000 users
per organisation on the bulk payment option paying AUD $45.00 per month = AUD $45k per month x 12 =
AUD $540k per year in gross recurring yearly revenue
from one organisation. Multiply that by 10 or more companies using the platform and revenue goes exponential.
Also highlighted on pages 46 & 47 of the company Prospectus, is that Norwood's initial priority is Australia, create brand and awareness of CORONA & EUROPA then once they have proven the model is scalable and repeatable to then take it internationally. When ready, additional regions include South East Asia, Middle East and Europe.
Like yourself, I think this needs more time too, but so far the positive for me is that two paying customers are onboard which equals strong technological and commercial validation of the CORONA platform.
References:
http://www.asx.com.au/asxpdf/20150422/pdf/42y1l77krwm3v1.pdf (Prospectus)
http://www.asx.com.au/asxpdf/20150618/pdf/42z821ckf8gykf.pdf (Company Announcement)
Tony
