Think of these supply agreements as infrastructure.Netcomm are...

Think of these supply agreements as infrastructure.

Netcomm are building metaphorical pipelines, railways and roads to connect their product all over the world.

The Telco's on the other end are signing these agreements to be able to demonstrate to their customers that they have the capability to provide m2m solutions and hardware. The interest is there, however the demand is yet to be quantified.

We must wait for the suppliers on the end of Netcomm's Pipelines to open/turn on their taps. The more supplier agreements Netcomm has, the more market coverage and initial market share they can capture.

One of the problems that I see Netcomm may encounter is that if the infrastructure gets too big, they may not have the resources and expertise to service all of their suppliers at the same time (More from a design / customization / SDK / Support Services) point of view.

I hope they're spending a good chunk of their R&D funds on building the support for their products.

SS