Some Numbers

Just ran some numbers on my profit model with the 11% commission rate.

I changed the average remit down to $30 per month (averga in real world is $200) as I assume the commission rate might have something to do with lower amounts being feasible on Airpocket system (but this is just a guess).

So from 100M users, we require a 0.25% uptake to break even (including fixed costs and not taking into consideration other revenue generating products).

On 0.5% uptake we get about US$13M pa profit.

On 1% uptake we get about US$33M pa profit

On 5% uptake we get about US$191M pa profit.


Maybe I am missing something here and time will tell but if that commission rate is correct, there is a hell of a lot of upside. And if the telco is willing to pay this, they must have strong reasons for wanting the Airpocket product and will probably market the product to their customers as part of the deal.....