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For Verizon, a royalty payment is triggered and is linked to end-user consumption each month.
Regarding eSims, in theory, they could open the market to more innovative carriers seeking out new models for unlocking the value of mobile data, i.e. Freeway.
If and when eSims achieve market acceptance, it would be feasible for Syntonic to evolve Freeway’s identity model to accommodate multiple phone numbers (multiple carriers) tied to the same consumer.
As discussed in our latest Quarterly Report (27 April), Syntonic has scaled back its end-user acquisitions costs by 83.3% from the previous quarter. Instead, the Company is concentrating its investment in the higher margin business of selling the Syntonic platform services to mobile carriers. Accordingly, growth in the Freeway app has become less relevant. It has been replaced with the Freeway installed based metric which serves as a more insightful business metric. The installed base was reported to be 31.7 million smartphones worldwide at the end of March 2018. This includes the white-labeled Freeway app and Freeway SDK licensed to mobile carriers.
Regarding expansion, we will update the market on material expansion progress as per disclosure framework.
SYT Price at posting:
1.6¢ Sentiment: Buy Disclosure: Held
