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BUSINESS |
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. Offers telecom operators in China application platforms on which to offer Mobile Value Added Solutions ("MVAS") to subscribers.
. Enables telecom operators to offer their subscribers access to unique mobile applications, innovative tools, value-added services and an overall superior mobile experience.
. TBOW believes it adds value to clients by helping them increase average revenue per user and decrease subscriber churn. |
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TWO CATEGORIES |
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. MVAS Technology Platforms, which create a portfolio of unique mobile phone applications to enhance the mobile subscriber’s experience, and
. Mobile Payment Solutions, which facilitate commerce between mobile users, merchants and payment clearing systems. |
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REVENUE GENERATION |
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. Charges a one time licensing fee and an annual maintenance fee of 5 – 10% of the initial system purchasing amount. |
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. Also has monthly revenue sharing contracts in place with resellers and directly with the relevant provincial branch of the telecom providers for up to a 50% share in the revenue generated through proprietary applications platforms.
. In addition to one-time sales and revenue sharing, we also generate revenue through transaction fees for our Mobile Payment System solution. |
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CUSTOMERS |
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Primarily telecom service providers in the PRC, including local branches of China’s three major cellular carriers, China Telecom, China Unicom and China Mobile |
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GROWTH PLAN |
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Each of the 30 provinces, municipalities and autonomous regions contains its own self sufficient cellular operating unit with separate P&L responsibility. In other words, with 30 regions, there are 30 separate operating companies per cellular carrier. This model is replicated in each of the three major carriers, resulting in a total of ninety potential clients within China. |
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The PRC government has mandated that these mobile payment services and MVAS functions must be available to all provinces over the next five years. With such services currently available in 13 provinces, the 17 remaining provinces will be seeking them from the market with Trunkbow being a major incumbent; fully vetted at a corporate level and with patented technology. |
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TBOW was initially focused exclusively on the PRC market and is now actively positioning its product sets with carriers in the US and Europe, and is entering the global market. |
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INTELLECTUAL PROPERTY |
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. 164 filed patent applications, of which 50 have been granted by the National Intellectual Property Administration of the People’s Republic of China.
. Recently begun the process of filing for international and U.S. patents in order to protect intellectual properties globally. |
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COMPETITION |
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. Within the MVAS Application Platform segment, principal competitors are: Huawei and ZTE.
. Within the Mobile Payment System segment, primary competitors are: UMPay, HiSun Technology, and Guangzhou SmartChina. |
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USE OF PROCEEDS |
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$27.4mm from sale of 5mm shares |
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. $15 million to build out mobile payment service platforms in Zhejiang Province, Xinjiang Province, Shandong Province, Shanxi Province and Henan Province in the PRC, pursuant to terms presently under negotiation between certain of TBOW’s resellers and China Unicom
. Balance for working capital and general corporate purposes. |
