USTelematics (UTLM), a company that provides technology and products for communications in vehicles, announced that it has negotiated a new Verizon (News - Alert) commission agreement through Celluphone, the largest Verizon distributor in the United States.  

 

As per the new commission agreement, USTelematics (News - Alert) will double its commission income rate for activating new Verizon wireless wide area network subscriptions for users of USTelematics’ proprietary Voyager brand wireless mobile products.

 

Voyager is a rear-seat infotainment system for passenger vehicles. It enables passengers to enjoy live television, movies, music, and computer games. Voyager also supports WiFi for Internet access using portable computers inside the vehicle.

 

According to USTelematics, “with this new commission arrangement, the profit realized through connecting each Voyager buyer to Verizon now exceeds the gross margins on the sale of each Voyager Mobile Internet Protocol Television unit.”

 

The agreement brings a new revenue formula for USTelematics, a strategy that highlights the importance of data subscription services for infotainment content, along with the hardware sales. The immediate focus of the company will be to implement Voyager system in the maximum number of U.S. vehicles.

"This deal to increase our Verizon commission rate creates a more robust revenue model for UTLM s Voyager product line," said Howard Leventhal, chief executive officer of USTelematics, in a statement.

 

 "We’ve executed this Trojan Horse strategy to profitably leverage the sales of Voyager hardware to generate an even more important revenue stream in the sales commissions of subscription broadband services,” Leventhal added.