Chaz,
Re: Elcotel, Microsoft, Smart Cards, Embedded OS, Internet Appliance (Public)
<< But the fun, the wild cards so to speak, is at the wireless / internet (intranet) nexus with modems and PC cards and who knows what else >>
Under the subject of "who knows what else" . . . .
A while back, you asked me to report on any upcoming plays I saw in "smart cards" and you also asked me to report on anything I saw of interest at CTST is Miami.
At CTST I was a little too close to the forest to see the trees (booth duty, meetings, etc.) so I am still collecting my thoughts on any emerging smart card plays. I did however see a smart card enabled "Public Internet Appliance" manufactured by Elcotel, in the Gemplus booth, and I was so impressed by it that I plan to do a little quick DD on a company called Elcotel.
The device is called "Grapevine". It is a payphone available in traditional wall model and desktop version and it has a truly impressive Windows CE color display and IE4 based browser (that I could not help but comparing to the Mickey Mouse WAP Thing on my CDMA phone). Actually "Grapevine" is more than a device. "Grapevine integrates the Windows CE 2.12 and Windows NT platforms to create a complete end-to-end Microsoft solution".
Both wireless and wireline versions of the device will be available I was told by the individual that demonstrated the device. I assumed GSM (because of the proliferation of prepaid smart cards and purse cards in Europe & Asia), but perhaps CDMA or another technology because Mexico has become the largest market for prepaid phone cards, and even in NA where there is certainly a large pay phone market, and good prepaid card market (although not with chip cards.
The device (both versions) is pictured here:
elcotel.com
Check out these press releases there:
ELCOTEL TO DEMONSTRATE GRAPEVINE, THE FIRST NON-PC PUBLIC INTERNET APPLIANCE FOR PUBLIC COMMUNICATIONS POWERED BY WINDOWS CE
Grapevine is the first non-PC public Internet appliance for the public communications market. Grapevine integrates the Windows CE 2.12 and Windows NT platforms to create a complete end-to-end Microsoft solution. The terminal combines traditional payphone capabilities with sponsor-paid content and advertising, e-commerce and personalized information services from the Internet in a public access setting. The Grapevine terminal network is powered by esprit, Elcotel?s comprehensive system for ?back office? support and content management. This proprietary system manages the terminals and is designed to tailor advertising messages and future sponsor-paid content for each individual terminal.
ELCOTEL UNVEILS DESKTOP VERSION OF GRAPEVINE, THE FIRST WIRED NON-PC PUBLIC INTERNET APPLIANCE
Here is a brief Company Profile:
>>Elcotel, Inc. (NASDAQ-ECTL) is North America's leading provider of integrated public communication solutions. Headed by a seasoned management team with extensive telecom, computer, and systems integration experience, Elcotel's state-of-the-art product line encompasses a full range of microprocessor-based "smart" payphones and software management systems.
As a result of its acquisition of the public terminal assets of Lucent Technologies and the merger with Technology Services Group, Inc., Elcotel has more than doubled in size. The Company now has manufactured nearly 400,000 microprocessor-based terminals and control of the original technology employed in 90% of the total 2.2 million payphones currently installed in the United States.
The Company serves three market segments: domestic regulated telephone companies, domestic independent payphone providers, and international telephone companies. The Company?s domestic customers include the Regional Bell Operating Companies, AT&T, and 1,600 independent payphone providers. Elcotel?s international client base includes 32 telecommunications companies in 35 countries around the world.
Elcotel is transforming itself into a more balanced and diversified company offering a full range of products and services to all three major markets for public access. Major drivers of the Company?s transformation are its recent acquisitions, expansion of its sales force, development of strategic market/product relationships, and continued emphasis on product development. The Company is realizing the benefits of this strategy by maintaining marketshare, and expanded growth opportunities. The success of the Company?s transformation is readily seen in the changing breakdown of its sales, from over 12% in the independent provider market in 1996, to approximately 38% independent provider, 50% domestic Telecom, and 20% international anticipated for the fiscal year ending March 1998. The Company?s evolution has also improved financial visibility with 30% of revenues expected to be reoccurring in nature, derived from refurbishment services and replacement parts.
Product Outlook
The Company's product offering includes microprocessor-based "smart" payphones, management software systems to support public access operations, mechanical payphones, a full line of replacement parts, and equipment refurbishment services. The Company is also developing a line of public Internet access terminals. Each Elcotel "smart" payphone is a self-contained communications computer that automatically downloads rate information and processes calls without operator assistance. The Company's payphone management software systems allow service providers to manage and monitor thousands of terminals from a single PC. The Company supports its entire offering with customer training and support services that are unparalleled in the industry. The Company's systems operate over all domestic and international networks (which use different signaling conventions), in both wireless and wireline environments, and can support coin, credit card, and pre-paid card payment platforms, as well as multi-currency and multilingual applications. All of the Company's public access equipment and systems can be customized to meet specific customer needs and specifications.
Industry Outlook
Public communications is a thriving $20 billion annual worldwide market, experiencing growth as a result of worldwide deregulation and privatization, and the advantages offered by smart payphone technology. Domestically, a newly leveled playing field, created by the 1996 Telecom Act, is creating uncertainty, but is expected to result in broad public communications expansion and upgrade. For countries overseas, public communications is considered a top strategic priority for participation in global markets. With 3 billion inhabitants of the third world lacking telephone access, but with incomes too low to afford private connections, public telecommunications build-out is vital to improving living standards.
New public access communications technologies are also key drivers to industry demand. Microprocessor-based systems are expanding the market for public access terminals due to their vastly improved operating economics compared to mechanical equipment. Wireless cellular terminals and satellite transmission modes provide for rapid public access equipment installations in locations that otherwise would not be economical or geographically possible. Smart card and pre-paid card technology is facilitating public access communications throughout the world. New state-of-the-art public access terminals offering Internet and e-mail access; electronic commerce; voice, fax, and data transmission; multilingual and multi-currency capabilities; and voice prompting; in conjunction with coin, credit card, prepay card, and smart card payment modes are providing consumers with low cost public access to all forms of communications.
Based on these factors, Elcotel believes world demand for payphone equipment should continue to increase.
Company Outlook
Elcotel believes it is well positioned to capitalize on increasing global demand for public communications equipment, and has assumed an active role in the ongoing development of the world's public communications infrastructure and technologies. Elcotel is helping telecommunications companies, both foreign and domestic, modernize their equipment. It is helping consortiums, created by the privatization of communications sectors, in determining the requirements for their public communications networks. The Company is investing extensively in developing public communication solutions that will make reliable, cost-effective networks a reality throughout the globe. Current product focus is on further development of digital cellular and wireless networking, programmable displays, smart chip-card payments modes, and Internet access terminals. These products are expected to offer strong growth potential and are believed to be very synergistic with Elcotel's existing customer base, marketing operations, and customer support services. With break-through products and strong technical know-how, Elcotel believes it is in a position to meet a broad range of customer needs, as well as guide the global industry to expanded levels of public communication capability. <<
I realize we are not necessarily talking about a potential gorilla in Elcotel but the whole area of "devices" related to wireless communications is an interesting one.
What ever happened to our handheld game?
- Eric - |
