The unknown is nerve racking but ETAK is not about ATT alone. We should have other opportunities this year to diversify us on revenue basis. Zain should hopefully start this year. 3 new U.S. Contracts small but a step forward in U.S.
AT&T doesn't have a full platform in house. They are trying to form a consortium to work towards an SDN type platform hence their partnership with Affirmed Networks beginning of last year. You think it was a coincidence that ETAK all of a sudden partnered with as well last month?? Maybe it was at the request of ATT. I know the features that they asked ETAK to install and test have so with flying colors. Why would they ask that of them if they intention was not to keep going as planned and maybe look at their future acquisition in action..
With over 2M SIMs already transfered and working flawlessly why would ATT look to remove them back onto what Iusacell and IBM know to be a flawed system hence the 2.5B lawsuit? It just doesn't make any sense.
It seems that somebody or entity is trying to hamper the climb of pps. Its looks like they just dumped a big chunk on market to sink the price and break the trend that was starting to happen. Someone is really out for the company or at least trying to shake the tree for cheap buy real bad. I am sad I missed it drop!
Indeed...they just told the world that if you want to get into Wireless MNO business, we can do it for you in 3 months flat A-Z. I hear Google wnnts to offer direct wireless to users now.....along with many other like them who want to get into the business of providing unique wireless network to lock down marketing directly to end users....imagine Amazon and Ebay and big name retailer can do when its become this easy to design, deploy, and offer wireless services.
Stock...one thing I like to get clarified is that this new MVNO might be part of the new 5 year contract and expansion by doubling 1.5M Sims that Vodafone had on our platform already. So they might be adding new brands or increasing the existing ones, and maybe transferring other MVNOs in that region.
Let's not forget that other's in the space might be trying to develop this type of platform but ETAK has it and it's been rated by Ovum to be the most comprehensive of all platform. Secondly as others try to develop this they must first go through the same trials and drags of proving the concept and reliability of the platform. ETAK already has that done as well. So by this measure we are 3-5 years ahead of anyone else in the space. By that time we will have 100s of million SIMs and still be ahead of them as we are and will be continuously developing and adding features to our proven platform. HP partnership is a great point in that HP could have gone spend a few hundred million trying to develop by ETAK has but they said why? Lets partner and integrate what is already out there and see how that works....If its great then we just buy them.
Invest that has been one of my point exactly. ETAK has been dealing so far with the clean up as they transfer each SIM...and they have been doing this for FREEEEE! And ATT doesn't want this right??
Don't forget that they have signed 3 smaller sized MVNO contracts last Q that was planned for migration in Q1. We should be hearing about that as well in near future as they get loaded on.
Give them to the end of the day. I am sure that they will prove ETAK is going out of business and SVV has been lying.
Its great to hear that during this null and quite time they have been busy creating a brand new MVNO for Vodafone from scratch. What is impressive to me as a telecom/security engineer is the implementation time of such a system. 3 months is incredibly fast by any standards. This gives me an indication of how well architectured this system is to be able to put complex pieces and operations together so quickly. This is a confidence building point for me as an engineer and I can see that reason for enthusiasm that other CIOs will see the benefit and power of SDN 2.0.
You have to excuse birdy's ignorance in anything business but he thinks AT&T is here to please ETAK's shareholders and bashers. With the new CEO not even taken a seat in the chair in Mexico we expect him to release a PR about the state of affairs on ETAK platform. The reality is that this will take time....its unfortunate that we have to wait so long but such as life of a small contractor in hands of the 800lb gorilla. Even though they have been working together in past couple of months and have given ETAK features that must installed and test which has been done already SVV can't come out and speak for AT&T CEO without their full review and agreement. There is no other logical reason for ETAK not continue from technical, business, or financial on ATT side but there is always that air of politics. On that note, we know ATT in general is under gun to produce higher margins and profits for their shareholders so choosing IBM will only be the death of the new CEO their....the logical wise choice is ETAK.
IMO regardless of more immediate reaction to a news from ATT and whether its going forward or not ETAK will have ample more opportunities going forward on their own and with HP. Our current price has completely discounted Iusacell and the opportunity their. Upon positive confirmation of ATT going forward or additional SIMS have been transferring you will see the price react sharply above 1.50 or higher. But if for some stupidly impossible reason ATT decides to go back to IBM and deal with all the issues that exist on that system and trys to spend millions for fixing it before even being able to execute on their plan to extend capabilities and feature in Mexico then you will see a knee jerk reaction to 60 cents area and bounce back to 80s on confirmation of other revenues from VS. Remember, we have given Iusacell a really great deal per SIMs because of the size and also because we wanted a qual of that magnitude on our roster. So their revenue contribution with only 2M SIMs are minimal. Additional smaller numbers from Vodafone would replace it quickly. As I said in my other thread the whole idea of AT&T going with IBM and its massive issues is absolutely #$%$ and would speak volumes to me regarding politics and managements decision capability in Mexico. Who the right mind wouldn't want a company like ETAK to correct their issues for FREE before migrating them on a powerful platform of future????? ETAK is doing this for Iusacell as part this migration for FREE!! Like I said....its no other logical way than move forward for ATT.
Vodafone extension to 5 year contract with 13% increase in our fee is proof that our promise of reducing their expense and increased profitability has been delivered otherwise they would have cancel and rolled back their SIMs. I believe a successful migration of mexico will further entice ATT to look internally in U.S. for cost reduction and use of SDN platform as their network here is mainly legacy boxes with major opex and capex each year. However I think before they use us that extensively it would be cheaper to buy us.
The timing of the acquisition couldn't be worse. Current state of Iusacell network is in limbo at best. Here is why:
1) 2 BO systems that are completely different and not uniform on the backbone and to the users.
2) AT&T has to maintain 2 systems and operational cost and capex for the legacy to keep the wheels turning. This is expansive and cumbersome.
3) Post op of any acquisition is usually cost reduction via system integration which in case of telecom operators include backbone consolidation via frequency and bandwidth, nodes and backbone elements like routers, switches, and servers. This result in better control and lower cost to ATT.
4) IBM system has known limitations and issues that will not support Iusacell's growth that they are experiencing in Mexico...up 1M to 9.2M from 2013.
5) Operational efficiency achieved by migrating to SaaS platform with larger feature sets for growth at up to 80% cost reduction in Opex and Capex. A system that has 10M capacity now and can easily be upgraded to 20M.
By AT&T completing what Iusacell started they can:
1) Transfer all current SIMS to a more powerful single platform
2) Offer feature not available now on IBM legacy systems
3) Reduce Opex by headcount reduction in backbone and operations
4) Reduce Capex by shutting down IBM system and ceasing support cost for the system
5) Minimize operational headcount in Mexico and have their U.S. NOC control and operate the network remotely on ETAK. (HUGE)
6) Increase capacity via ETAK with NO CAPEX/OPEX to 20M and only pay for users as they market and increase their foot print.
7) Increase profitability on this division in 4 months
There is absolutely no reason why ATT would not continue with migration and all the reason why they must complete it quickly. Looking forward to hearing something on this soon now that the deal is closed and AT&T is now the customer of record....great qualification addition to our roster!
Pending their SDN initiative and what they will experience first hand with ETAK's platform going forward in Mexico this might be a way for them to achieve their objective. Why go build from scratch with all the cost of development when they can purchase ETAK's MVNO side for cheap. But IMO, they will test out first in Mexico. Its certianly much cheaper for them to licence SaaS for this small amounts of SIMs than acquiring us but if they decide that this will save them 100s of millions on their own network them obviously purchasing ETAK will be the way to go. who knows....but that would be an amazing turn of events in couple of years.
For your information and from a technical perspective this can not and will not be possible for ATT. ATT's own systems in U.S are not based on SDN platform. They have multitude of various of "boxed" platform and it legacy in nature. They can not transfer any SIMS on these systems from Mexico because they are not setup for a Mexican population and billing and therefore would have to build out a specific system to do so. Why in the hell would spend massive capital on adding boxes and reinveting the wheel? Stupid. So think about the things you say. I can see that you have no technical background or understand this space by your comments but this is by far was most rediculous. At the very worst they will manage the existing system in Iusacell and try to upgrade. But with over 2M SIMs already transferred onto ETAK SDN platform and 1 year of performance matrix and flawless execution why would they not continue the transfer and go through the cost and trouble of moving them back onto a flawed system with IBM at much higher cost of operations??? We know from Iusacell that the databases on IBM are absolutely corrupt and one of the main reasons for a $2.5B lawsuit. Why would anyone would want to continue with that situation??? Secondly ATT has already directly worked with ETAK on features that they want them to integrate and test...this has been done with flying colors. Affirmed Networks, a ATT partner and leader in virtuallazition, has partnered with ETAK for this purpose. Finally, AT&T's push and directive is towards SDN based network....not going backward into box platform. So all signs are distinctively pointing towards ETAK and even a bigger player down the road with ATT and their future plan to go SDN on their own network.
IMO very soon we should see movement on the migration. The tell tale signs are in the PR and points directly ETAK capability....from the PR...
"We look forward to bringing more wireless competition to Mexico along with an improved mobile Internet experience for customers," AT&T CEO Randall Stephenson said in a statement.
AT&T intends to upgrade the Iusacell network and sees an opportunity in selling more smartphones and mobile Internet services in Mexico.
Iusacell's former CEO, Adrián Steckel, will help Arroyo with the integration of Iusacell into AT&T. Arroyo was previously chief information officer of AT&T, as well as CIO of the mobility unit.