Initial Value of US$600,000 Annualized Revenues
MONTREAL–(BUSINESS WIRE)–March 21, 2005–United American Corporation’s (NASD OTCBB:UAMA) wholly owned subsidiary Teliphone Inc. has signed an extensive marketing and distribution agreement with Podar Enterprise of Mumbai, India that will bring Teliphone service to most of Central, South and East Asia, and Eastern Europe as well as parts of the Middle East. The agreement gives Podar exclusive distribution rights for India , China , Russia , Sri Lanka and the United Arab Emirates , a territory with a combined population of well over 2 billion people. Podar will begin distribution with India and then continue rolling out to the other countries over a 12 month period. In addition to Teliphone’s wireless Internet telephone and wired Teliphone Line, a USB Teliphone handset will be introduced for these markets which will expand market potential to all users with a computer and Internet connection.
“We believe there is an enormous untapped market for this product, particularly when you consider the amount of telephone traffic between Asia, Europe, the Middle East and North America” said Rajiv Podar, Podar Enterprise’s President, “We intend to focus on companies and individuals with high international traffic needs and we are very pleased to be working with Teliphone to develop these markets. The Teliphone product is a priority for us and will significantly enhance our Infotech division and its clients, which includes broadband wireless Internet.”
George Metrakos, President and CEO of Teliphone adds: “Our agreement with Podar demonstrates the highly scalable nature of our multi-lingual platform for telecommunications services. We welcome Podar to the Teliphone team and look forward to working with them to expand our services into this market.”
India represents the 6th largest telecom market in the world with a telephony subscriber base of nearly 80 million and is expected grow by several million over the next 2 years. International long distance (ILD) in 2004 was nearly 6 billion minutes with VoIP accounting for just over 2 billion minutes or 35%. ILD is expected to grow to just over 9 billion minutes by the end of 2006, with VoIP projected to take 55% of the market, some 5 billion minutes.