VelaTel Gains Control of a VERY Lucrative SIM-Card Overlay Company
SIM Card overlay…quick…what comes to mind? I bet….eh…nothing.
Here is why this technology is so cool and so important to VelaTel. In keeping with their 4G carrier insurgent strategy—SIM overlay is PERFECT. Most every digital device—phone, tablet, Mi-Fi card or dongle has a SIM card (Subscriber Identity Module).
The SIM holds personal identity information, cell phone number, phone book, text messages and other data. It can be thought of as a mini hard disk that automatically activates the phone into which it is inserted.
In most countries of the world, cellphone or data plan users switch SIM cards from country to country as they travel…that way they avoid EGRECIOUS roaming charges.
For example, a traveler from the U.S. staying in the U.K. can purchase a SIM card across the pond. Now the phone (with the UK SIM card installed) can be used to call throughout England without paying international roaming charges from the carrier back home. SIM card portability simply means you take your phone with you and buy a local SIM card with minutes.
Now let's talk SIM Overlays…it's easier and gets more interesting. Using a SIM Overlay on top of your SIM card, cell phone or data plan owners can switch carriers and continue to use the same phone or device. You DON"T have to buy a SIM card for every country…just one $5 SIM overlay card does it all.
Basically, the SIM Overlay technology is awesome…the overlay basically allows a wireless service subscriber to "unlock" their existing phone, tablet and or/data device and switch to a MUCH CHEAPER carrier like Zapna for international calls, long distance (and soon for data plans too in countries with VELA data networks).
The SIM overlay tricks your phone into thinking that the SIM you are using is the officially approved SIM for itself, allowing the phone to work normally and without any changes to its firmware. This is totally legal by the way.
Unlike other international calling solutions, subscribers keep their existing device, number and dialing protocol while enjoying MASSIVELY discounted rates. Zapna is in essence a mobile virtual network operator (MVNO), and their SIM Overlay technology is operable in over 50 countries. I am sure it will be expanded to 200+ countries as needed.
Zapna Out takes over when you dial an international number. At the moment an international call is made, the call is routed via Zapna's out server. Prices for voice over the Zapna network can be discounted up to 90% from the local roaming charges.
What's the Big Plan? VELA's plan I am sure is to BLANKET VELA's wireless broadband service carrier regions with cheap overlays…and then USE those relationship to sell 4G data plans to those customers! VELA makes a nice profit on all roaming and international calls….but MORE important buy selling and activating the overlay service they build a relationship with the phone owner in order to sell their higher profit 4G data plans at DISCOUNTED rates!
In short, with the SIM overlays they can STEAL legacy carrier customers with 90%ish reduced international roaming service and UPSELL them to VelaTel 4G wireless data services.
It's the insurgent guerilla marketing plan of all time IF you have a data plan to sell to wireless customers. ZAPNA's tech license is for all of Europe (according to their web site). We also assume VELA will expand the license to South America and China—checking on that now.
All in all, this is an earnings accretive acquisition with significant upside revenue and profit growth opportunity.
Source
Disclaimer: NBT and affiliates own @ 10 million shares of VELA
About the Author
Founder and Editor-in-Chief NBTEquitiesResearch.com. Contributor and Anchor Fox News Channel and Fox Business Network. Chairman & CEO NBT Group,Inc., a boutique private capital investment bank and investor relations organization.
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