Cloud company Pareteum announces $1m deal for Middle East IoT
Pareteum says unnamed customer – second unnamed customer in two weeks – will use platform to expand into Middle East IoT services
Cloud services company Pareteum says it has received a contract potentially worth $1 million for connectivity over the next three years.
The company has not named its customer, which it simply describes as an “internet of things (IoT) service provider” that is expanding “into the Middle East using Pareteum’s platform and connectivity”. This is its second anonymous customer the company has announced in less than two weeks.
It added: “Pareteum’s global mobility cloud platform enables this customer to provide machine-to-machine (M2M) management and connectivity for IoT devices. Each IoT device is a mobile subscriber with connectivity, enabled to conduct transactions and send and receive data.”
The company adds: “Recurring monthly fees will be generated by Pareteum for each IoT device on its platform, as well as transactional revenue each time one of these IoT devices makes a data transaction. Revenues are expected to ramp over the course of the three-year contract with potential to exceed the estimated $1 million contract value.”
New York-based Pareteum was named Elephant Talk Communications until October 2016, and chose the new name after a restructuring which saw it sell its cybersecurity business, ValidSoft. Former Telarix executive Vic Bozzo became CEO of Pareteum at the same time.
The company’s shares, quoted on NYSE American, formerly known as the American Stock Exchange, have dropped from $4.90 immediately after the name change to around $1.05 now, putting its market capitalisation at under $15 million.
“Our customer is rapidly expanding to provide mobile enablement and connectivity for the growing IoT device market in enterprise networks globally,” said Bozzo of the latest announcement.
“By leveraging Pareteum’s platform and connectivity reach, our customer can move into new markets without spending more capital and benefit from our seamless connectivity on any network, anywhere, anytime.”
Pareteum announced another unnamed customer only a few days ago. On 12 September it said had “been selected to provide its global mobility cloud platform and connectivity to an established mobile virtual network operator (MVNO), a retailer of IP telephony technology for mobile phones, phone cards, and internet service through hundreds of internet kiosks in airports, railway stations and shopping malls around the world.”
It said that this customer “has been selling services to hundreds of thousands of travellers per year for last 20 years throughout the US, Europe and South America”.
Bozzo said that this earlier deal was “a low seven figure contract in its initial three-year term that can easily grow into the mid-to-upper seven-digits upon auto-renewal in the following years”.