Webtech Wireless announced they have completed the pilot phase with GNP, the Mexican insurance company that is controlled by Carlos Slim. A few points about this deal:

1) My contact at Prolog indicates that GNP expects to be able to roll-out to about 800,000 of GNP’s 1.3 million customers within five years, and get to over 350,000 within three years. They are targeting 50,000-100,000 in the first twelve months of the roll-out, with the first of the roll-out orders no later than the end of March. Using these numbers, and a per unit figure that takes into account the high volumes, I still arrive at an estimate of between US$6 million and US$25 million/year in revenue to Webtech.

2) For those concerned that Webtech will end up with a problem in Mexico like they had in Brazil the first time around with Volkswagen Brazil, it is important to know that GNP is paying Webtech directly for the units.

3) This deal has a material monthly recurring revenue component for Webtech.

4) Note that it is significant that GNP is a Carlos Slim-controlled insurance company: he was involved in the process of approving the move to full roll-out; he also controls many other business interests in Mexico, including TelCel (with which it would be reasonable to expect a deal modeled on the AT&T/WEW deal before too long), and various businesses that have truck and car fleets that could benefit from The GNP/Webtech offering.

Source: http://www.northernriversfunds.com/a...