151222 norwood expands markets and payments options (po ...2015/12/22 · roaming charges*, which...
TRANSCRIPT
ASXANNOUNCEMENT
22December2015
NorwoodExpandsMarketsandPaymentsOptions–AnnouncesNewPayments,PricingandWorldCreditPlatformstoPowerFutureGrowth
Highlights:Norwoodannouncescomprehensivenewpayments,pricingandcreditmanagementinitiativestodrivemarketpenetrationoftheCompany’sconsumerAppsoutsidetheroamingmarketintothelongdistancetelecommunicationmarketandbeyond.TheseinitiativeswillexpandthesizeofNorwood’spotentialcustomerbaseandrevenuegeneratingcapacity.
o NewPaymentsPartners:Newplatformwillsupportmultiplepaymentsmethods,andwillbringnew paymentpartnersonboard:Stripe,toprocesscardspayments,and PeppermintInnovation,toserveunbankedcustomersindevelopingmarkets. Norwoodwillseeincreasedcustomerrevenueandnetincomeviathese partnersthroughbothlowercommissionratesoncardpaymentsandaccess tounbankedcustomerswhocouldnotpreviouslyspendmoneywithNorwood (orotherVoIPproviders).
o GlobalDynamicPricing: Norwood’sserviceswillbepricedoptimallypercallinglocationand destination,ratherthanusingafixedglobalrate.Thepricingwillvary dependingonwhereuserswillbecallingfromandto,withpricingset periodicallytooptimisegrosscontributionperregion.Timedhigh-volume plans,includingtheCompany’sUltimatePlan,willcontinuetobesupported.
o WorldCredit: Norwoodwillbeswitchingfromminutes-basedconsumptiontoacredit-based consumptionapproach,calledWorldCredit,withinallofitsconsumerApps. Thiswillenableindividualisedroute-basedpricing.Norwood’sAppuserswill benefitfromindividualisedcorridorpricingbydrawingdownontheirpre-paid “WorldCredit”balancepercall,toppedupthroughanyoftheexistingornew paymentsmethodsaddedovertime.WorldCreditisdesignedtobeshared acrossApps,facilitatinga“singleaccount,multipleApp”relationshipbetween Norwoodanditscustomers.
o NewPaymentsPartners,GlobalDynamicPricingandWorldCreditplatformswillberolledoutprogressivelyforallofNorwood’sconsumerAppsonAndroidandiOSthroughQ12016.
“SharingEconomy”telecommunicationspioneerNorwoodSystemsLtd(“Norwood”or“theCompany”)(ASX:NOR) is pleased to announce a fundamental upgrade to the Company’s consumer App e-commerceframework, focusingonsignificant improvementstoPayments,PricingandCreditManagementwith itsnewWorldCreditplatform.
TheupgradewillmaximiseWorldPhone’smonetisationpotentialwellbeyonditsexistinggeographicallyandpricingdefinedroamingmarket.
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PaymenttypesMarkets
Roaming Long-distance Unbanked
In-AppPurchase: Existing ✓New N/A
CreditCard: ✓New ✓New N/A
Non-CreditCard: ✓New ✓New ✓New
LoyaltyPoints Future Future Future
ExpansionofPaymentOptionsandAddressableMarkets
Norwoodisbringingadditionalpaymentspartnersonboard,tosupportdirectcreditcardpayments,aswellasnovel non-credit card payments and remittances platforms to serve customers without bank accounts indevelopingmarkets.Norwoodexpects thesepaymentpartner initiatives to loweraveragecommission ratespaid out to partners, as well as expanding Norwood’s addressablemarket to the ‘unbanked’ sector in thedevelopingworld. Two new payments partners for Norwood are Stripe, a US-headquartered Internet andMobile payments company, and Peppermint Innovation Limited (ASX: PIL), a Western Australian-headquarteredPaymentsPlatformcompany, focusingonbringing the“unbanked” into theglobalpaymentssystem.
ThisupgradealsomarksasubstantialchangetoNorwood’spricingstrategy,movingfromasingleglobalflat-ratepricingregimetoamoreflexible,globally-tailoredcontribution-maximisedpricingmodel.ThischangewillenlargeNorwood’saddressableworldwidemarket,aswellasexpandingusecasesforWorldPhoneandotherNorwoodAppsbeyondtheexistingroamingtravellermarketintothegeneralisedlong-distancemarket.Thisstrategywillspecificallytargetkeyidentifiedhigh-valuepricingcorridors.
ExampleTelcoPricingCorridors(notactualdata)
WorldCredit isanewshared-creditplatformenablesusers tomaintainasingle,securelymanagedpre-paidcredit balancewithNorwood that canbe appliedon telecommunications services acrossmultipleNorwoodApps.MaintainingastoredcreditbalanceperuserthatcanbesharedacrossAppswillprovideNorwoodwiththebasisfor:
o Flexiblepricing,adaptedpercallingrouteontheWorldPhoneApp
US– Mexico$0.80/min
EU– SaudiArabia$1.50/min
Yemen– Ghana$5.20/min
Australia– India$1.20/min
NewPaymentOptions
NewMarkets
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o Supportforstreamlinedmulti-ApprelationshipswithNorwood’scustomers,forexampletosupport“familyplans”ormultipleNorwoodAppsthataddressdifferenttargetedusecases.
WorldCreditoperatingacrossmultipleNorwoodApps
NorwoodSystemsCEOandFounder,PaulOstergaard,commented:
“IamveryexcitedtointroduceWorldCredittothepublic,asitisaninitiativethatwehavebeenworkingonforsome time now. It leverages the best insights of one of the world’s foremost telecommunications pricingexperts,whohasbeenadvisingtheCompanyonitsglobalpricingstrategysinceAugustthisyear.WorldCreditlaysthefoundationforafutureconsumermulti-AppbusinessforNorwood–asignificantpartofourstrategy–withasinglecommonpaymentsframeworkacrossallsuchApps.“Thenewcontribution-maximisedpricingmodeltakesourCompanyintoanewplayingfield,whereforthefirsttimeweaddresstheentiregloballong-distancetelecommunicationsmarket,currentlyestimatedat600billionminutesperyear,openingmanynewopportunitiesinadditiontoourexistingpresenceintheroamingmarket.“ExpandedPaymentsOptionsandtheWorldCreditPlatformwillalsoprovideNorwoodwithimprovedmarginsandmarketreach,aswellasgivingourcustomersunparalleledflexibilityinhowtheytransactwithus.“Ouraward-winningWorldPhoneApphasexperiencedgreat initialsuccesssince its launchonlyfivemonthsago,regularlyachievingdailydownloadratesonAppStoresthatarehigherthanmanycompetingVoIPApps’dailydownloadrates–acrossnumerousmarkets.WorldPhonehasalsobeengeneratinghighlyencouragingearlyrevenueinanumberofinterestingmarkets.“We see these new initiatives on pricing, payments and shared credit as really important and valuableadditionstoouroverallrevenueandgo-to-marketmodels.Sincelaunch,wehavenotedanasymmetricuptakeandmonetisationoftheWorldPhoneAppacrossmanymarkets.Inmanycases,webelievethistobeduetothecompetitiveness(oralternatively lackthereof)ofourexistingflat-rateglobalpricingwhenappliedacrossmany differently-priced markets. These new initiatives are designed to drive additional App uptake andmonetisationinanumberofmarketsegmentsthatwecurrentlydon’tyetcompeteeffectivelyin.“Finally,onbehalfoftheentireNorwoodteam,Iwanttowishour investorsandsupporterstheverybestfortheholidayseasonandtheNewYear.Weappreciatethatithasrecentlybeenaturbulenttimeinthemarketand want to re-affirm the team’s commitment and dedication to building the world’s most compellingtelecommunications platforms, powered by an exciting array of beautiful, easy-to-use and monetisableconsumerandcorporateapplications.Having laidarobust foundationoverthepast fivemonths, intermsofourpeople, systems,productsand services,weareworkingveryhard– through thebreak–onanamazingproduct pipeline and an equally amazing array of customer and partner opportunities before us. We arelookingforwardto2016withgreatanticipation.Thankyouforyoursupporttodate.”
Userspurchasecommon“WorldCredit”onanyofNorwood’s consumerApps
EachApp isawareof(anddisplays)thecurrentcommoncreditbalance
EachAppcanusetheavailablecommoncreditbalanceforcalls,otherservices,respectively
World Phone
Calls
World App 2
Service2 Service3
World App 3
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-ENDS-
ForFurtherinformation,pleasecontact:PaulOstergaard,CEO&FounderOffice:+61892003500Web:www.norwoodsystems.comTwitter:@norwoodsystems,@paulostergaard
ShaneMurphy,FTIConsultingOffice:+6194858888Direct:+61894858804Mobile:+61420945291Twitter:@ShaneWMurphy
BackgroundIndividual travellers,businessesandgovernmentsgloballyare incurringsignificant internationalcall roamingcharges. Informa Telecom estimates that mobile operators today bill more than US$55 billion annually inroamingcharges*,whichisforecasttogrowtomorethan$80billionby2018(source:JuniperResearchreportontheMobileRoamingMarket,2014).
Norwood Systems’ patent-pending cloud service platforms integrate the international fixed phone networkwith short-haul Voice over Internet Protocol (VoIP) technologies to optimise roaming business travellers’telephonyexperiences.
Australian businesses and individual business travellers are using Norwood’s services today on multiplecontinents.TheCompanyhasbuiltupasignificantpipelineofprospects,includingglobalplayersintheareasofaviation,professionalservices,banking,telecommunications,engineeringandlegalservices.
AboutNorwoodSystemsNorwood Systems Ltd (ASX: NOR) is revolutionizing the ‘Sharing Economy’ delivery of high-qualitytelecommunications services for individual business travellers and organisations on a worldwide basis. TheCompanylistedontheASXon16June2015.
NorwoodSystemswasfoundedin2011todevelopandsupplythebestpossibleglobalmobilityandroamingsolutions using Over-the-Top (OTT) technologies. The Company’s breakthrough offerings, CORONA™ andWorld Phone™, deliver the world’s most advanced international fixed-line roaming solutions addressing abroadspectrumofcustomers,fromindividualbusinesstravellersallthewaythroughtolargeenterpriseandgovernmentclients.
CORONA is an award-winning, enterprise-class cloud services platform thatintegrates compatible mobile devices securely and seamlessly with theorganisation’sexistingUnifiedCommunicationorPBXnetworks, independentoftheirlocation.
World Phone is an award-winning, revolutionary communications App,deliveringeffortless ‘Sharingeconomy’ consumer access to leading fixed-linenetwork service providers around the world, providing unparalleled localaccesstohigh-qualityvoicenetworksinmorethan90countries.
AboutPeppermintInnovationPeppermint InnovationLimited(ASX:PIL) is isacompanyfocusedonthecommercialisationofaproprietaryMobile Banking, Payments and Remittance technology, designed for banks, mobile money operators,remittance companies, payment processors, retailers/merchants, credit card companies, and microfinanceinstitutions.
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ThefocusofPeppermint’s initialefforts is inthePhilippines,acountrywithapopulationofcirca100millionpeopleand105millionmobilephonesinuse,whereover4yearshavebeenspentdevelopingandintegratingthetechnology,whichiscurrentlybeingusedbythreeleadingcommercialbanks.
Peppermint aims to leverage a successful commercialisation strategy in the Philippines and build onestablished relationships inorder todevelopa commercialpresenceutilising theMobileBanking,PaymentsandRemittancePlatformfurtheracrossAsiaandbeyond.
AboutStripeStripe is thebestwaytoacceptpaymentsonlineand inmobileapps.Stripehandlesbillionsofdollarseveryyearforforward-thinkingbusinessesaroundtheworld.
Stripenowprocessesbillionsofdollarsayearforthousandsofbusinesses,fromnewly-launchedstart-upstoFortune500companies.SinceStripepowerssomanynewbusinesses, it'sasnapshotofhowthe Internet ischanging;manyusersareincategoriesthatbarelyexistedfiveyearsago.WebandmobilebusinessesaroundtheworldusingStripeincludeTwitter,Kickstarter,Shopify,Salesforce,Lyft,andmanymore.
Stripe is358peopleandheadquartered inanold trunk factory in theMissiondistrictof SanFrancisco. Thecompany has received around $300 million in funding to date; investors include Sequoia Capital, Visa,AmericanExpress,PeterThiel,andElonMusk.
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