SOURCE: Elephant Talk Communications

Elephant Talk Communications

December 20, 2010 10:15 ET

New Regulations in Brazil May Help Open South American Mobile Communications Markets to Elephant Talk

SCHIPHOL, THE NETHERLANDS--(Marketwire - December 20, 2010) -  Elephant Talk Communications, Inc. (OTCBB: ETAK) (http://www.elephanttalk.com/) anticipates that new regulations from Brazil's telecom regulator, Agencia Nacional de Telecomunicacoes (Anatel), could create opportunities for Elephant Talk and a whole range of businesses that want to position themselves for a role in the mobile cloud. "This is a huge step forward and could propel the Brazilian market into one of the largest virtual network markets of the future," explains Steven van der Velden, chairman and CEO of Elephant Talk. "It's a smart step."

In rules issued in late November, Anatel allowed banks, retailers and other non-telecom businesses to set up their own mobile virtual telecom networks. These companies are expected to create their own virtual networks, supported by companies like Elephant Talk, to reach their customers with m-commerce, mobile banking, loyalty programs, a variety of content, promotions and a whole range of other services. "They are all excited by this new regulatory framework," says Van der Velden.

The companies, however, won't build their own networks. Instead, they are expected to turn to so-called Mobile Virtual Network Enablers (MVNEs), such as Elephant Talk. ETAK essentially provides an entire mobile telecom platform in a handy package -- essentially out of a-box, that include a whole range of capabilities, that are both scalable and easily to interface with any existing system these companies may already have deployed All that's needed to complete the network is contracting space on the spectrum and antennas of mobile telecom operators, a process that is now covered by the new regulation.

ETAK's vision is that cell phones and other mobile devices will become the most important way for banks, doctors, retailers, governments -- and even churches -- to reach and communicate with the communities they serve. This trend may even be more pronounced in countries that don't have extensive landline networks in rural areas, like Brazil and other South and Central American nations. Where necessary, mobile coverage can further be complemented with satellite as well as wifi and femtocell access, which can all be easily and seamlessly integrated into Elephant Talk's mobile telecom platform.

Following up frequent earlier contacts with supermarkets, retail distribution chains, banks and mobile operators, in late November Elephant Talk executives met again with Brazilian banks and their potential local partners. "We've already got some very strong partners lined up, and we are confident that Brazil will become an important market for us," says Van der Velden.

In addition, to the ways ETAK can "manage the mobile cloud" for the numerous businesses new to using the mobile channel for the purpose of generating revenue, ETAK's wholly owned subsidiary ValidSoft, can fully "secure the cloud." The security of the mobile platforms, connections and handsets is necessary to have a successful roll-out of the Brazilian market, as well as all other markets. Elephant Talk is well positioned as its platform offers a total solution.

And as Elephant Talk forges ahead in Brazil, the company also envisions progress in other South and Central American countries. "In 2011 and 2012, we expect breakthroughs in countries like Colombia, Chile and Mexico," says Van der Velden.

Van der Velden envisions that ETAK's success in Brazil and South America may help the company achieve its 2011-2013 goal of becoming a major international company that will help hundreds of businesses with managing and securing the cloud.

About Elephant Talk Communications
Elephant Talk Communications, Inc. (OTCBB: ETAK) is an international provider of business software and services to the telecommunications and financial services industry. The company enables both mobile carriers and virtual operators to offer a full suite of products, delivery platforms, support services, superior industry expertise and high quality customer service without substantial upfront investments from clients. Elephant Talk provides global telecommunication companies, mobile network operators, banks, supermarkets, consumer product companies, media firms, and other businesses a full suite of products and services that enables them to fully provide telecom services as part of their business offerings. The company offers various dynamic products that include remote health care, credit card fraud prevention, mobile internet ID security, multi-country discounted phone services, loyalty management services, and a whole range of other emerging customized mobile services. For more information visit www.elephanttalk.com

Forward-Looking Statements
Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about the Company's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here; however, readers should review carefully reports or documents the Company files periodically with the Securities and Exchange Commission.

Contact Information

  • Contact:
    Elephant Talk Communications, Inc.
    Mr. Steven van der Velden
    Tel: + 31 20 653 59 16
    Email Contact

    Investor Relations:
    Alliance Advisors, LLC
    Thomas P. Walsh
    Tel: + 1 212-398-3486
    Email Contact