Loop Insights Inc (CVE:MTRX) (OCTMKTS:VRZPF), a provider of artificial intelligence solutions, said Tuesday that it has accelerated conversations and projects with two of Canada's largest telecommunications companies as well as two of the largest network providers in the United States.
Vancouver-based Loop said that with traditional services becoming obsolete, many telcos are making “strategic moves” to expand their IoT product offerings. In this context, the company said it's Fobi device is appealing as it provides the “disruptive turnkey solution” telcos have been looking for to get ahead of the competition.
Fobi is Loop’s SIM-enabled IOT device which has LTE connectivity, a standard for wireless broadband communication for mobile devices and data terminals. This capability provides an independent secure network for the client. It installs in minutes and has the potential to help customers belonging to telcos unlock their retail data to make “smarter, faster, data-driven decisions,” in addition to tracking data instore and online.
Loop's goal is to deliver Fobi to telcos which can resell it to existing customers through their reseller channels, speeding up Loop's distribution plans.
In a statement, Loop Insights CEO Rob Anson said: "We have been focused on laying the foundation for a channel reseller partnership model because it is proven to be successful in accelerating growth while allowing the company to remain lean, agile and profitable.”
He added: “Loop's ability to provide a fully commercialized IoT product to the largest telcos in North America is expected to increase shareholder value not only through accelerating the path to significant revenue generation but also by making Loop a significant player in this sector which should increase Loop's attractiveness for possible acquisition."
With Loop's products now ready for mass implementation, widespread distribution has been its focus. Loop is of the view that partnering with telcos as resellers, which have tens of thousands of existing customers each, is the best way to obtain Loop's goal of achieving a high rate of implementation. It’s a symbiotic relationship as telcos are also looking for scalable technologies that can keep them current.
Loop said it will generate revenue through the proposed channel reseller pricing model consisting of a one-time onboarding fee for each telco customer, a monthly software-as-a-service fee for each point of sale terminal, programmed advertising for each customer based on distribution and redemption of offers, and Loop professional services charged out at an hourly rate.
“It is expected that each one of the telcos' customers could generate recurring annual revenues for Loop in the range of $7,000 to $10,000,” said the company.
COO Gavin Lee said: "The proposed telco channel re-seller model could provide a strong business and revenue model for the company producing multiple streams of recurring revenue with high margins (ranging from 40% to 70%) making the potential of these opportunities extremely lucrative. We've built a highly scalable product and the channel reseller model is expected to be one which is rapidly deployable, a significant revenue generator and one which is easily repeatable across a number of industry sectors."
Contact the author Uttara Choudhury at [email protected]
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