Licensing IRIS makes sense. Was it was October 2006 when they first signed with Telmex? Thats not two years and the first year was devoted to a focus group which lead to all of Mobile Voice Products not just Email.
MTNL was signed in 10/2007, thats not even one year.
In 2006, the Company signed a deployment contract with the residential group within TELMEX for deployment of One Voice's MobileVoice solutions to the over 19 million TELMEX subscribers throughout Mexico. The MobileVoice service was launched to TELNOR subscribers, a TELMEX subsidiary, in October, 2007 as a TELNOR branded service called IRIS. For information on IRIS visit http://www.yosoyiris.com or http://www.telnor.com. The MobileVoice (IRIS) service has tested and performed very well as anticipated. We are working closely with TELNOR to ensure the IRIS service is very successful and the feedback to date has been very positive. We are now working with both the residential and small, medium business (SMB) groups within TELMEX for coordinate a national launch for IRIS in both groups. We are confident this national launch will happen in the coming months. The revenue generated from of a national launch with TELMEX should have a material impact on the Company.
In October 2007 both the Company and Mantec Consultants ("Mantec") entered into a contract with Mahanagar Telephone Nigam Ltd. ("MTNL") of India to provide MobileVoice services to MTNL's over 6 million subscribers. Mantec is One Voice's local sales associate in India. MTNL is owned and operated by the Government of India. The Company and Mantec are currently working on deployment of hardware and systems integration with MTNL. According to MTNL, the MobileVoice service will be made available to MTNL's existing 6.13 million subscribers for MobileVoice email by phone service and the total expected customers for this service is .92 million within the first two years. MTNL has set the monthly subscription price of $1.25 USD monthly per subscriber out of which the Company has a 30% share. We anticipate the MTNL revenue stream to grow as we launch additional MobileVoice services including voice dialing, group call and voice-to-SMS services. In order to expedite the launch with MTNL we decided to initially launch email by phone and the revenue projections given by the marketing department of MTNL reflect the email by phone service only. We anticipate this revenue projection to grow as additional MobileVoice services are launched to MTNL subscribers. We are planning on having our service ready for testing by MTNL in early May, 2008. MTNL will then have a 3 month testing period after which revenue generation to the Company will commence. The revenue generated from this launch with MTNL should have a material impact on the Company.
The Company recently signed an agreement to deploy MobileVoice services with Mohave Wireless. This service was launched to Mohave Wireless subscribers in February of 2008. The MobileVoice service will be included as a standard service for all Mohave Wireless subscribers.
The Company recently signed a Teaming Agreement with Motorola to work together to broaden Motorola's offerings to Motorola customers. These offering could include solutions such as One Voice's MobileVoice along with media control and voice search. We are currently working with Motorola on joint proposals to Motorola carrier customers along with adding voice search capabilities to existing Motorola multi-media products for access to a mobile phone users' music library from their mobile phone.
The Company is currently in a test phase with a national yellow pages provider that is evaluating our automated 411 voice search service for automated directory lookup. The target launch of this service would be this year if selected.
EMBEDDED SECTOR ---------------
On August 15, 2007 the Company signed a Memorandum of Understanding ("MOU") with Intel Corporation in which both companies will work together to add One Voice's voice technology to a Linux based handheld device. The Company sees a potential opportunity with this mass consumer electronics (CE) device and will apply the necessary resources to co-develop this project. We have been working closely with Intel engineers to add voice control to their Moblin operating system. We have recently demonstrated this capability in the Intel booth at the 2008 Consumer Electronics Show, Mobile World Congress and the upcoming Intel Developers Forum. We have also ported our software to RedFlag Linux. Both RedFlag Linux and Moblin are the primary operating systems used on Mobile Internet Devices (MIDs). Both One Voice and Intel have jointly presented our voice solution to several MID OEM's and we have initial confirmation that our software will be bundled on a major OEM's MID for launch in Q4 of 2008.
I would ASSUME that TELNOR would have to be paying ONEV on the DSL's under the old agreement until a new agreement is reached. Obviously they can't move to a licensing structure if they haven't negotiated agreeable pricing and it wouldn't be fair to let it continue for FREE after months of not paying ONEV. It would seem to be in TELMEX's best interest to conclude whatever ongoing interest they have in licensing Iris soon. Whatever premium they would be paying under the old agreement with ONEV on TELNOR's DSL/Infinitum users would be a drop in the bucket to TELMEX in the greater scheme of things JMHO.
This is not like licensing an out of the box solution. So, it should not be one fee and done (very doubtful that would ever be the case). One fee and done would leave TELMEX in a very tough situation as technology evolves.
If there is a major license, then part of that license will include continuing support fees and continuing maintenance (development of enhancements and evolution of technology for changes in involved third-party interfaces).
Typical major licenses like this would involve ballpark of 17% in annual "maintenance fees" plus an hourly rate structure as a wrap-rate for continued support. First few years the continued support would be very significant. Remaining years the profit model on maintenance should be manageable if the product original structure was designed for modular maintenance (surely it has been).
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