Elephant Talk Communications, a telecommunications company that trades at the symbol: ETAK (click here for their company profile) announced the execution of a contract with T-Mobile Netherlands B.V. to enable Mobile Virtual Network Operators (MVNOs) in the country to operate voice and data services over the T-Mobile Network. The agreement includes the deployment and operation of a fully featured 2G and 3G network. What is a MVNO? The first commercially successful MVNO was Virgin Mobile UK, which launched in the United Kingdom in 1999 and now has over 4 million customers in the UK. Its success was replicated in the US. With this case study in mind, right now is a very exciting time for this fast-growing company.
Elephant Talk Communications is positioning itself as an international telecom operator and enabler/systems integrator to the multimedia industry by facilitating the distribution of all forms of content, as well as mobile and fixed-telecom services, to global telecommunications consumers. The company provides traditional telecom services, media streaming, and distribution services primarily to the business-to-business (B2B) community within the telecommunications market. Elephant Talk is also a systems integrator and developer for mobile telecom and content distribution solutions; and, as a Mobile Virtual Network Enabler (MVNE), the company has positioned itself as the premier outsourcing partner for both Mobile Network Operators (MNO’s) as well as for Mobile Virtual Network Operators (MVNO’s). Elephant Talk is positioning itself as the preferred MVNE partner of the larger, global Mobile Operators and currently operates sophisticated networks in over a dozen markets in Europe, Asia Pacific, and the Middle East.
ETAK has created a unique business model that is designed to provide traditional telecommunication (i.e., voice) and media distribution (i.e., streaming) services primarily to B2B customers and has developed a turnkey mobile platform that allows their client base to rapidly capture the explosive wireless subscriber market. The Company’s business model is targeted to attract and facilitate customers who want to enter the mobile market but lack the financial resources and/or technical capabilities to invest in the needed infrastructure. ETAK provides a one-stop shop proposition for its clients with integrated billing solutions and its low-cost structure serves to differentiate the Company from its competitors. We recommend this investment with a rating of “Speculative Buy” and a 12-month target price of $2.40.
Currently trading at a $0.80 share price, Elephant Talk is an undervalued stock and this is a great time to invest in this fast-growing company. By achieving partnerships with global telecoms such as T-Mobile, Elephant Talk will be on the fast-track to success in the highly profitable telecommunications industry. Steven Van der Velden, CEO of Elephant Talk, stated: “We are very proud because through this agreement with T-Mobile, we are ready to immediately offer our services as a full MVNE (Mobile Virtual Network Enabler) to the MVNO market in The Netherlands. As a matter of fact, a first MVNO has started their operations and several others are expected to sign up in the near future. This represents a fundamental milestone in our strategy to become a major player in the arena of the MVNO Enabler market worldwide.”
“The extreme flexibility and the comprehensiveness of our solution,’ said Steven Van der Velden, ‘allows us to setup and launch a new MVNO project in a matter of weeks, thus reducing considerably the barrier of entry for new starters.”