customer base.
The Licensee of Coretalk whose responsibilities are to establish the necessary business infrastructure and to appoint and develop a network of distributors within the territory Licensing rights are “sold” on a per country/territory basis, which allows Licensee to:
– Utilize the business concept within a territory
– Establish a distributor network via which the Coretalk concept may be marketed
– Grow a recurring revenue stream for itself and it’s Distributors
– Have access to all future developments that will take place on the Coretalk product base
– Market the product to End Users within the territory.
– Sell Sub-Licenses as per contractual agreement with WBS where these are deemed to improve concept saturation
The Distributor/s whose prime objective is to establish Coretalk in the market as fast as possible following the guidelines and parameters laid down by the Licensee.
The ideal profile for the Distributor is a business with an already existing Sales Network to which Coretalk may be added as an additional Income Generator. The business that fit this profile range from Telecommunication Businesses (Least Cost Routing, GSM Services, GSM Network, Corporate Business Divisions etc.), IT Support Businesses (Hardware, Peripherals, Printer Ribbon, Cartridge refurbishment etc.), Business Process Improvement Consultancies and so on. The Coretalk product, by way of its generic business appeal, can assist each of these business environments to “open doors”, and offer their customers a product that delivers genuine business improvement and cost savings to their client (potential client) base.
WBS in return receives an initial Licensing fee and a percentage of turnovers (generally 5-7%) generated through the business model in order that it may continue product enhancements and continue delivering:
– Support services such as telephonic and online support, emergency system patches, training, user-group management and marketing concepts
– Innovative generic business extensions to Coretalk
– Build a business presence via the web for all of it’s affiliates
During introduction of Coretalk to a country the model is split between the following two main phases:
• The Launch phase which is taken to be the first 6 month period during which the Licensee establishes the necessary business structures, makes the first sales of Coretalk in the market using its own sales team and introduces the first official Distributors of Coretalk. During this phase beneficial terms are usually extended to Distributors to encourage their success and the rapid deployment of Coretalk in the market.
• The Post Launch phase which has its main focus the establishment of a complete network of Distributors in the country and the normalizing of financial terms between the Licensee and Distributors.
The business model has been designed to be flexible enough to suit the various financial relationships that the Licensee and Distributor may wish to establish. The model is based on the win/win philosophy that is advantageous to all from the Licensee, through to the Distributor and the Customer.
2.7 Organizational Structure
SGTL has 5 full-time employees at Dhaka branch for its Bangladesh operations, starting from Branch manager (Bangladesh) as presented in the following Organogram of the company.
2.8 Departments
SGTL has formally four departments at Bangladesh branch:
• Finance
• System
• Marketing
• Administration
2.9 Global Partnership Network
Backbone Technologies, a South African IT company, develops and implements wireless solutions utilizing the cellular backbone. Wireless Business Systems (Pty) Ltd. (WBS) and SBB Global Software cc. markets these solutions worldwide with distribution rights in certain countries.
The partnership model is very modular – the marketing is divided into these two arms as both are small companies. Both subscribe to Backbone which is their development house. Thus all three companies have flat structure working in close contact to get market penetration.
SBB is actively involved in marketing Coretalk in South America (Jamaica) and was until very recently a shareholder in the South African Coretalk operation. Both WBS and SBB sold share to CoreTalk, SA in order to raise funding for their new initiative. WBS markets Pre-chat and Coretalk in Asia Pacific, Africa and Europe. SBB has sold distribution rights of CoreTalk in Australia, New Zealand and Jamaica. WBS has marketing partners in South Africa, Zimbabwe and Bangladesh (SGTL).
• Backbone Technologies
MIS Consulting cc. evolved into a Software Development Company that now trades under the name Backbone Technologies.
The company was formed in 2000 and initially focused on the development of an Electronic Voucher Distribution (EVD) System. The target market was the informal cash-driven economy in South Africa. The company recognized the need for effective prepaid airtime distribution in the informal trading market and embarked on the development of a virtual airtime system that could distribute prepaid airtime from a cell phone to an end user. After the product was developed, the company sold the exclusive rights of the software to a South African company. The company has been in operation for approximately 3 years.
Recently, Backbone Technologies changed its emphasis and focused on the development of wireless solutions. The company is driven by a team focusing on viable business solutions that provide a competitive edge on the wireless backbone. Its philosophy is simple – it aims to develop products that are cost effective and business orientated, utilizes the widest available communications network in the world – the GSM Cellular Network – and market these via a unique business concept with partners in selected countries worldwide.
Backbone Technologies is co-owned by Wireless Business Systems (Pty) Ltd and SBB Global Software cc. each holding 50% share.
Clients
Backbone Technologies is currently operating in the following countries:
America: Jamaica
Africa: Kenya, Malawi, Nigeria, South Africa, Zambia, Zimbabwe
Asia Pacific: Bangladesh, Thailand
Australasia: Australia, New Zealand
• Wireless Business Systems (Pty) Ltd.
WBS was formally incorporated in South Africa in 2003 with its core business being the marketing and development of wireless technologies.
Partners and Licensees:
Backbone Technologies is currently operating in the following countries:
o South Africa: Business efforts have recently focused on the CoreTalk system. A full distributor network has been established and business is expanding rapidly with constant growth in demand by businesses across the spectrum.
o Zambia: The Zambian licensee, CAD International, has established a successful and growing business over 18 months using the PreChat system. CoreTalk has been launched in 2005.
o Nigeria: Channel Technologies acquired the license rights for Nigeria in 2003. Initial efforts were focused on PreChat which is now running successfully. CoreTalk was introduced in 2004 and demand forecasts are immense.
o Malawi: CAD International, the Zambian licensee, expanded their rights to include Malawi in early 2004. Business is currently focused on PreChat.
o Zimbabwe: CoreTalk Zimbabwe, the local licensee, is very pleased and encouraged with the steady growth in demand for the CoreTalk system after only 8 months of operations in difficult economic conditions. PreChat was launched in 2005 and, in the first month, sales amounted to Z$700 million.
o Bangladesh: Samtel Global Technologies, our local marketing partner, launched PreChat in association with Telkom Malaysia (Bangladesh) in January 2005. By December 2005, turnover amounted to approximately $5 million per month - equating to 50% of their turnover. As a result, all parties concerned are more than happy with progress to date.
The first batch of CoreTalk packs is about to be delivered heralding the launch of CoreTalk in this country.
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