USWE - US Wireless Data (formerly USWDA) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : USWE - US Wireless Data (formerly USWDA)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Jay D. who wrote (82)	9/25/1997 12:18:00 PM
From: Rob S.	of 370

Who is the "we"? Currently the hardware is sold to the banks and credit card companies for resale to merchants. The hardwware manufacturer does not sell the credit card clearing service so he doesn't care who the bank uses to handle the transactions and they don't get revenue form the cash flow and lose nothing if the merchant decides to switch to another credit clearing agency. The Tranz Enabler product is a box that works in conjuction with the credit swipe box the merchant has already paid for. The hardware mfg. of the credit swipe product will continue to sell boxes so this is not an immediate threat to them. Eventualy USWDA will pose a threat to Veriphone (sp?) because they can add card swipe capability to the Tranz Enabler product and sell it in place of the traditional phone link devices. They may also become a threat to the banks and other credit companies for the clearing service. However, USWDA is a small company in a multi-billion dollar (and growing ~7.5%/year) industry. And they are enabling the wireless phone companies who have already invested $2 billion in CDPD capacity that is largely unused and not generating revenues. USWDA is signing the wireless companies up to exclusive contracts that give them a meaningful and visible role in effectively utilizing this idle capacity. The strategy is to let hte huge wireless companies have the majority of the public glory and a good part of the profits as it will facilitate tiny USWDA the ability to attach the marketplace effectively. The small piece of the pie that USWDA will receive is only small from the perspective of the overal industry and the wireless giants. That small piece will be very profitable and substantial from USWDA's perspective. The cost difference between the creidt card service that USWDA is able to offer and current competitive rates is made posibel becuase of the efficiency of the system. The CDPD uses idle capacity that the wireless companies find profitable to make available at a lower rate than the normal leased lines required for wired credit card lcearing service. It's also much quicker (more efficient transmission prototcols) which makes better use of facilities than does wired service. The difference is measured only in the tenths of a percent. That small difference becomes substantial when figured on typical store volume. Will there be competition? You can bet on it. Is USWDA creating a position that will be very profitable? They have a solid agreement with GTE and agreements underway with Nynex, AT&T Wireless, and several others. The trials with the additional companies are going exceedingly well and verbal agreements have been exchanged and written agreements either sent or initiated. At this point you'd have to say that getting these agreements in place is still not assured. IMO the agreements are highly likely - they are clearly in the best interests of the wireless companies. The competitive battle to forge into others markets will be fought between the wireless companies and the traditional service providers. Who knows, maybe the wireless companies will enlist the banks to help them sell the service. As long as USWDA makes their tiny sliver of the gargantuan transaction pie, this will be a very succesful enterprise.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next