Elephant Talk Signs Contract With the Union of German Police to Expand Mobile Services Into Germany
BONN, GERMANY -- (Marketwire) -- 05/31/12 -- Elephant Talk Communications Corp. (NYSE MKT: ETAK) (NYSE Amex: ETAK) (www.elephanttalk.com), an international provider of business software and services to the telecommunications and financial services industry, today announced that it has signed a contract to provide mobile services for 55,000 mobile users for the Union of German Police ("GdP"). The contract is anticipated to provide $30-40 million in revenue to Elephant Talk (ETAK) over the initial 2-year contract period. The revenues generated from this contract will provide substantial margins for Elephant Talk, reflecting the fact this contract includes airtime. In the future this project has the potential for further roll-outs to more of GdP's 130,000 mobile users.
Under the contract Elephant Talk will deliver its mobile services, including SIM-Cards, Airtime and a variety of Service Options, based on its carrier grade Mobile Virtual Network Enabling Platform including CRM, Billing Solutions and Online Self-service portals. GdP is serving the products to its members while continuing their partnership with Bauer Concept for the logistics and customer support. Elephant Talk will provide the mobile services over the network of Telekom Deutschland, the German operating company of Deutsche Telekom, guaranteeing the members of GdP, what is believed to be the best possible Network Quality.
Steven van der Velden, CEO of Elephant Talk, stated, "The size and scope of this contract materially impacts our financial results over the next two years. We are very pleased with the closing of this contract in just a short time after entering the German market via our recent acquisition of the assets of Ensercom. Since Germany is Europe's largest telecom market, we believe this project provides validation that our world class platform and services are being adopted by the largest names in the industry and coupled with our integration of Enerscom, should lead to additional contracts in the German marketplace. Elephant Talk's efforts to expand its business are expected to increase both revenue and earnings throughout 2012. We believe that the adoption of our platform in Germany will allow us to forge relationships with additional new customers, secure new contract awards, enter new markets, increase earnings, and improve shareholder value."
Hamit Pourian, Wholesale Manager of Telekom Deutschland, stated, "The partnership between Elephant Talk and Deutsche Telekom guarantees the members of the GdP the best network quality and provides us with excellent flexibility in the products and services to ensure our high quality approach for the German market."
Carsten Becker of Elephant Talk Germany stated, "This deal is the best sign of the excellent partnership between Elephant Talk and Telekom Deutschland, and shows the potential of additional MVNO-Sales, mostly focusing on large communities, realizing clear benefits for them. We believe this guarantees a win-win-win situation for the benefit of all partners involved."
"Based on our superior world class mobile enabling platform and the strength of our operations team the implementation of the entire project just took six weeks, which is a great accomplishment for a project of this magnitude," said Martin Zuurbier, Chief Technology Officer of Elephant Talk. "We are excited by the opportunity to serve the German marketplace with our unique set of enabling services. Over the next few months, Elephant Talk will continue to introduce new features in Germany to ensure that all the customers can benefit from our presence to the fullest extent. This will open up many potential opportunities for new products, solutions and business for MVNO's and Branded Sales Partners along with their customer bases."
GdP is the head organization of the Union of the German Police, representing the interests of more than 170,000 police officers in Germany. Next to taking the lead in representing the interests of the police officers, GdP also offers a lot of value added solutions to their members, such as credit cards, special mobile phone solutions, insurances and so on. For more information, visit (www.gdp.de).
About Deutsche Telekom
Telekom (OTCQX: DTEGY) is the former incumbent telecommunications operator in Germany, running still more than 80% of the fixed line connections for private and business users, and is the market leader servicing more than 38 M Mobile-Users with the best network quality in Germany. For more information, visit (www.telekom.de).
About Elephant Talk Communications
Elephant Talk Communications Corp. (NYSE MKT: ETAK) (NYSE Amex: ETAK) (www.elephanttalk.com) is an international provider of business software and services to the telecommunications and financial services industry. The company enables both mobile carriers and virtual operators to offer a full suite of products, delivery platforms, support services, superior industry expertise and high quality customer service without substantial upfront investments from clients. Elephant Talk provides global telecommunication companies, mobile network operators, banks, supermarkets, consumer product companies, media firms, and other businesses a full suite of products and services that enables them to fully provide telecom services as part of their business offerings. The company offers various dynamic products that include remote health care, credit card fraud prevention, mobile internet ID security, multi-country discounted phone services, loyalty management services, and a whole range of other emerging customized mobile services. For more information, visit (www.elephanttalk.com).
Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements with respect to the Company's plans and objectives, projections, expectations and intentions. These forward-looking statements are based on current expectations, estimates and projections about the Company's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from that projected or suggested is contained in the Company's filings with the Securities and Exchange Commission (SEC), copies of which are available from the SEC or may be obtained upon request from the Company.
Contacts: Elephant Talk Communications Corp. Mr. Steven van der Velden Tel: + 31 20 653 59 16 Email Contact www.elephanttalk.com Investors Relations: Alliance Advisors, LLC Thomas P. Walsh Tel: +1 212-398-3486 Email Contact
Source: Elephant Talk