BEIJING, Sept. 6, 2011 /PRNewswire via COMTEX/ -- Trunkbow International Holdings Limited /quotes/zigman/622283/quotes/nls/tbow TBOW -2.36% ("Trunkbow" or the "Company"), a leading provider of Mobile Payment Solutions ("MPS") and Mobile Value Added Solutions ("MVAS") in China, today announced that it has extended its MPS cooperation with China Unicom through the deployment of its terminal-based MPS platform in Hubei Province, bringing the Company's total MPS installed base to 23 provinces through China Unicom and China Telecom. This platform will be used for both payment processing and employee and student identification, with Trunkbow to receive revenue based on a percentage of each user's monthly phone bill.
"This deployment is a significant milestone for Trunkbow's partnership with China Unicom, as it not only represents a sizeable market with a user base of 7.2 million, but is another reference point for the use our POS-based MPS solution as an electronic ID card," said Mr. Qiang Li, CEO of Trunkbow. "To date, our MPS revenue from China Unicom has been derived primarily from system installations, but with this deployment, we expect to begin seeing meaningful recurring revenue streams based on purchases made using the technology, as well as the collection of monthly fees from China Unicom's subscribers who elect to use their mobile phones as student or employee identification tools. In addition to the revenue potential, we believe that this is a perfect example of the potential of our MPS solutions beyond cashless payment applications. As the technology becomes more prevalent in the market, we expect to further enhance our MPS offering through the introduction of additional features and functionality, which will add greater value to both carriers and subscribers, and further extend Trunkbow's leadership position in the Chinese MPS market."
Trunkbow expects to complete the implementation of this platform on China Unicom's Hubei network in the third quarter of 2011 and expects to recognize initial revenue from the deployment in the fourth quarter of 2011 or the first quarter of 2012. Under the first phase of deployment, Trunkbow and China Unicom will roll out MPS-enabled POS terminals at schools and enterprise locations, with the terminals to be installed at retail locations following this initial installation.
This platform will allow China Unicom's 7.2 million subscribers in Hubei province to make purchases at retail locations using their mobile phones at the point-of-sale, and will function as a convenient, secure electronic identification card for students and employees at schools and other locations using the technology.
About Trunkbow
Trunkbow International Holdings /quotes/zigman/622283/quotes/nls/tbow TBOW -2.36% is a leading provider of Mobile Payment Solutions ("MPS") and Mobile Value Added Solutions ("MVAS") in PRC. Trunkbow's solutions enable the telecom operators to offer their subscribers access to unique mobile applications, innovative tools, value-added services that create a superior mobile experience, and as a result generate higher average revenue per user and reduce subscriber churn. Since its inception in 2001, Trunkbow has established a proven track record of innovation, and has developed a significant market presence in both the Mobile Value Added and Mobile Payment solutions markets. Trunkbow supplies its mobile payment solutions to all three Chinese mobile telecom operators, as well as re-sellers, in several provinces of China. For more information, please visit www.trunkbow.com .
Safe Harbor Statement
This press release contains forward-looking statements that reflect the Company's current expectations and views of future events that involve known and unknown risks, uncertainties and other factors that may cause its actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such forward looking statements involve known and unknown risks and uncertainties, including but not limited to uncertainties relating to the Company's relationship with China's major telecom carriers and its resellers, competition from domestic and international companies, changes in technology, contributions from revenue sharing plans and general economic conditions. The Company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs. You should understand that the Company's actual future results may be materially different from and worse than what the Company expects. Information regarding these risks, uncertainties and other factors is included in the Company's annual report on Form 10-K and other filings with the SEC.