Business
iQSTEL, Inc. Executes Acquisition of Revenue Generating SMS-Carrier Assets; Forms New JV for SMS Business for Wholesale Carrier and Corporate Solutions
NEW YORK, NY, Feb. 12, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- iQSTEL Inc. (OTC: IQST) today announced the execution of an acquisition agreement for an
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[{"type":"text","content":"NEW YORK, NY, Feb. 12, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- iQSTEL Inc. (OTC: IQST) today announced the execution of an acquisition agreement for an SMS Business. A new 51% owned JV is being created for this business acquisition.\n The SMS market is primarily made up of 3 areas: App-to-Person (A2P), Person-to-Person (P2P) and cloud-based services for corporate clients. The global market sees 5 billion people using SMS messaging according to SlickText. By 2025 that number is expected to hit 6 billion with the driving force of 5G deployment. China, USA, Japan and most of Europe are the dominant markets with Latin America close behind. Mr. Iglesias, the Company’s CEO, stated: “With this acquisition, iQSTEL now has the IT and carrier agreements to officially launch its SMS business. The acquisition is inclusive of current carrier contracts that currently generate approximately $600,000 per year, thus will be accretive to revenue from day 1. We expect that this additional technology will be cross-sold with iQSTEL’s current carrier base, and increased inventory, allowing for a projected annual revenue rate of $6 million within 9-12 months. The name of the new company will be QGlobal SMS.” “The SMS market as a whole provides for an increased margin over VOIP services, thereby potentially providing for a strong return to the company. A2P (App-to-Person) continues to grow as this is the two factor authentication service that many people and companies (Microsoft, Facebook, banks, etc) are now using in addition to username/passwords. Security is an important component to the global economy and this acquisition allows iQSTEL Inc. (OTC: IQST) to not only benefit revenue wise, but to bring this added security layer to Latin America and other countries,” concluded Mr. Iglesias, the Company’s CEO. Companies are shifting their communications from phone/voice and email to SMS as statistics show the majority of people prefer SMS over phone or email contact, in addition to responding faster. An added benefit is all phones support SMS for two factor authentication (A2P) bypassing any app compatibility issues. The A2P market is currently on the rise as seen in the MobileSquared chart. About iQSTEL Inc.: iQSTEL (OTC: IQST) www.iQSTEL.com is a technology company offering a wide array of services to the Telecommunications Industry. These include...