Good morning Gordy...
Glad you asked that question - forced me to go back and look over the info I had been gathering for a while now. I am also taking the opportunity to put it all out there for any newbies we might have on the thread. Gets me tingly all over... :-)
I don't know that anybody on this thread can tell you EXACTLY how much of our future is vested in Indonesia, but it certainly is not an amount that can be ignored. The problem is that figures haven't been released on a lot of this stuff. Furthermore, sometimes the figures are released as guaranteed minutes and sometimes as guaranteed revenues. (I do like the ideas of the guarantee though <g>).
In Indonesia, we have the following:
- A telephone company (PT. Erakomindo Peranusa) with a guarantee of $40-50M net (that's as in NET) revenue over a 10 yr period. The guarantee comes from Telkom. It also provides the basis for future agreements and services.
- An internet service provider (deal should be getting close to completion by now) in PT. Primedia ArmoEkadata Internet. No numbers were released for this deal, but the company carries ISP licenses. It appears that Digitcom has the sole ISP role in Indonesia, with no further Internet Service Provider (ISP) licensing on the horizon.
Elsewhere, we have the following (already announced):
- The previously established U.S. business.
- An agreement with Mordovia to terminate long distance traffic: switched (including line and satellite) and internet traffic. The target is to reach 1 million minutes a month within 12 months. If that is met, the agreement is to be extended for another 5 years.
- Closures of deals with the 2nd and 7th largest telecom providers in the Russian Federation are expected for this quarter (we are now past the 1/2-way point). Letters of intent have been signed with each provider and the deals will take the form of joint ventures.
- An agreement with Louis International to provide U.S. lines and termination for Louis'traffic originating in Europe. Louis is committed to bringing $1M per month in in traffic to Digitcom. The traffic is to commence within 90 days of signing - we are probably within a month of that deadline.
- We have established a Point of Presence (POP) in Australia that links the Australian backbone to terminal in L.A. and S.F. in the U.S.
So, if you look at our current situation (right now) a very large portion of revenues come from Indonesia. The Indonesia services are the only new deals currently in effect, worst case. Mordovia could very well be providing revenue. European traffic is slated to begin in ~6 weeks, worst case. Also, by the end of the quarter, we should see the form that services to the Russian Federation will take.
As to the future, it appears that we have contract negotiations going on in many countries in the middle east and Vietnam and the Phillipines (the closer, Jimmy Chin, has appeared in the latter two - very promising!). And lastly, as Macker is very fond of pointing out, look to SOUTH AMERICA!
I don't think I've seen all this put together in any post before, so I hope it helps!
Lazarus
P.S. See Rocketman's post (while I was writing this) about the (insulated) vulnerability of Digitcom's assets in Indonesia. It is a very important point! |
