For many Americans, internet connectivity when travelling across the nation can be hugely frustrating due to the sparse land coverage which includes black spots for each major provider. Just look at every low budget horror movie which could have ended in 5 minutes if the protagonist had cell phone coverage…
Solving the issue which will provide peace-of-mind to many Americans, telecommunications company Flexiroam (ASX: FRX) has linked up with wearable device manufacturer Lutikey to connect their LutiBand Smartwatch to the Internet of Things (IoT).
A smart device dedicated to seniors, the LutiBand Smartwatch allows Seniors and people with pre-existing conditions to be protected all the time, providing geo-location, biometric sensors and interconnection with emergency services when they need help during emergencies.
These services however all rely on internet connectivity, which will be ensured by Flexiroam and their 520 global operators to guarantee LutiBand the connectivity they require, free of any black spots.
“I am pleased that LutiBand have chosen Flexiroam to be their IoT connectivity provider for their tracking devices. Today’s agreement with Lutikey is an important milestone, as it marks our entry to the wearable device vertical, which is a huge and growing market,” said Flexiroam CEO, Marc Barnett.
“Integrating connectivity at the manufacturer level ensures a long-life cycle, while providing the convenience of ensuring devices will always be connected to the best network, straight out of the box.
“The demand for our innovative IoT offerings continues to accelerate, with companies requiring cost effective connectivity with guaranteed coverage, as they rapidly expand in new markets. We are well placed to take advantage of strong long-term opportunities to scale our Flexiroam Solutions business, underpinned by increased IoT adoption across multiple verticals.”
The agreement will cover an initial 3-year term where a Flexiroam sim card will come with each LutiBand Smartwatch with a minimum order of 10,000, which would deliver $135k revenue to Flexiroam. That figure will increase as the number of devices and data consumption increases.
According to LutiBand’s website, individual smartwatches start from USD $169.95 each.
For the quarter ended 31 March 2022, Flexiroam reported $1.2 million in revenue which represented a 96% increase on the previous March quarter and 11% increase on the December quarter.
Rising sales have been driven by similar IoT partnership agreements signed with Thingsdata, Asia Mobiliti Technologies, Nearshore Networks, Cycledio and Pine Labs and Razer Merchant Services for Flexiroam to have more than 128,000 billed sim cards within their portfolio.
Alfred Chan is an Analyst at Emerald Financial, specialising in ASX-listed small cap companies.
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