Revenue from Elephant Talk Communications Telecom and Bank Card Fraud Detection Technologies could Hit $1 Billion in Five Years, Predicts MicroCap Investor Editor Josh Levine.
(MacReport Media Via Acquire Media NewsEdge)
Two prominent investment editors, Larry Oakley, editor and publisher at Wall Street Corner.com, and Josh Levine, Editor of MicroCap Investor (microcap.investorplace.com), see rapid growth ahead for Netherlands-based Elephant Talk Communications, Inc. (OTC.BB:ETAK) (http://www.elephanttalk.com/). In an interview with Oakley published today on www.WallStreetCorner.com, Levine says that Elephant Talks revenues could soar to $1 billion per year in four to five years. ETAK is in the right business at the right time, and could scale up rapidly, Levine told Oakley.The right business, in this case, is running cell phone networks for othersand adding unique services through Elephant Talk subsidiary ValidSoft (www.validsoft.com), such as the ability to instantly spot credit card fraud.What Elephant Talk offers is essentially an entire telecom network in a handy packagea Telco-in-a-box. All thats needed to complete the network is renting space on the spectrum and antennas of mobile telecom operators. That makes it easy for banks, supermarkets, doctors, or other businesses to offer their own mobile services, reaching customers and patients with everything from banking services to medical information. In addition, big cell phone companies are increasingly outsourcing the internal guts of their networks back offices to so-called virtual network operators like Elephant Talk.While Elephant Talk isnt the only virtual network operator, its one of the best, Levine believes. ETAKs Telco-in-a-box platform consists of a great deal of very complex software that ETAK has successfully integrated to make it exceptionally easy to use, said Levine. It enables both mobile carriers like T-Mobile (www.t-mobile.com) and virtual operators to offer a full suite of products, delivery platforms, support and customer service without substantial upfront investment from clients.Elephant Talk has already impressed big industry players. After Vodafones (www.vodafone.com) legacy network inSpainneeded improvements to meet the demands of virtual operators, the worlds largest mobile telecom provider rewarded Elephant Talk with a contract to implement and manage a new system. Elephant Talk won the contract over major global telecom equipment vendors and system integrators. Since the new system was put in place, it has been estimated that the cost of operating the back office of the network has significantly dropped. Another customer: T-Mobile in theNetherlands.More growth will come from industries that havent traditionally offered services over cell phones, like banking. Telco-in-a-box will enable many exciting next-generation mobile services that will play a major role in the coming revolution in the mobile telecom industry, Levine explained. These are applications built for mission-critical purposes and are highly secure in order to serve banking, energy management, medicine, and more.But doing a better job of running mobile networks is only part of Elephant Talks unique advantage, Levine told Oakley. The company has added advanced features that command premium prices.One example of such customized services is credit and debit card fraud detection. Elephant Talk subsidiary ValidSofthas developed software that instantly checks to see if a credit or debit card transaction is legitimate. The trick: comparing the location of the purchase to the location of the card owners cell phone. Typically, banks try to spot fraud by comparing new purchases to past spending patterns. If a credit card typically used inSpainis suddenly buying computers inCalifornia, thats suspicious. The problem for banks is that 90% of the transactions flagged as suspicious are actually legitimate. Trying to contact card owners to eliminate these so-called false positives is a huge expense and headache for banks. Banks often cut off credit cards because transactions look suspicious, only to be left with irate customers. The cost to banks: more than $100 billion dollars a year. ValidSofts innovative approach dramatically reduces this problem of false positives.ValidSofts technology is a remarkably elegant solution for credit and debit card fraud, said Levine. It even might prove to be more lucrative than Elephant Talks core mobile telecom platform, he added: ValidSofts potential is so huge that it easily rivals that of ETAKs Telco-in-a-box and it could scale even faster.Levine also told Oakley that Elephant Talks management team has an excellent track record and is pursuing a realistic strategy, focusing on those international countries where the market pull is highest. In fact, the company looks so attractive, it could eventually be a candidate for acquisition by a very large corporation, he predicted.Forward-looking statements in this news release are pursuant to safe harbor provisions of Section 21E of Securities Exchange Act of 1934. Investors are cautioned that statements in this release are not strictly historical statements, including without limitation, management's plans and objectives for future operations, assessment of market factors, statements regarding strategy, company plans and its strategic partners. These constitute forward-looking statements, are not guarantees of the company's future performance and are subject to risks and uncertainties, such as funding for machinery and materials, success in acquiring customers, maintaining needed government relationships, and successfully executing a business plan, which could cause the company's actual future results to differ materially from the forward-looking statements. For all such forward-looking statements, we claim the safe harbor for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.Contact: WallStreetCorner.com -- email email@example.com
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