SmartTrans closes in on giant China Mobile deal Mitchell...

SmartTrans closes in on giant China Mobile deal
Mitchell Bingemann and Michael Sainsbury
From: The Australian January 30, 2010 12:00AM

LISTED Australian technology group SmartTrans Holdings is close to inking a multi-million-dollar deal with the world's largest mobile phone company, China Mobile, to provide application management software for the telco's 508 million subscribers.

China Mobile and SmartTrans yesterday signed a preliminary agreement for the provision of a management system that will be used to distribute applications and other digital content, including games and music, to the telco's subscribers.

The announcement pushed SmartTrans share price up 660 per cent, or 3.3c, to 3.8c.

The deal could reap millions of dollars in revenue for the company as both parties have agreed to a revenue sharing model for use of the software that could reach China Mobile's 508 million mobile phone subscribers.

SmartTrans director Bryan Carr said that prospect represented a remarkable opportunity for the small Australian company.

"We're realistic we won't get all 500 million customers in the first year using our platform, but we're committed to the deal and managing the user experience for China Mobile's customers," Mr Carr said.

SmartTrans will also receive licensing fees for use of its software, and annual maintenance fees. "Of course these deals don't happen overnight. We've been building the relationship with China Mobile since 2006 and have been dedicated to understanding the business process and technologies over here," he said.

In China since 2007, SmartTrans provided VIP mobile software and transport management systems for the Beijing Olympics