ZipTel lands IP agreement

Local telecommunications company ZipTel has entered into an agreement with London-based Space Digital Media for the provision of its intellectual property (IP) in exchange for a slice of revenues.

ZipTel said today its IP would be integrated into SDM’s Convo App; a content-driven communication/social platform that is both a publisher and a platform for third party publishers.

In exchange for the IP, ZipTel will receive a share of SDM’s revenues generated from Convo App over a 10-year period.

If revenue exceeds £10 million, then ZipTell will receive 10 per cent. If revenue falls below £10 million, then ZipTel will receive 20 per cent.

The app is forecast to generate £28.8 million ($A47.4 million) in revenue by 2020, with ZipTel foreshadowing $A4.7 million in its share of revenue at that point.

“The Convo App is backed by a world class executive and advisory team, recognised as the most experienced and prominent in the digital industry, who have secured prominent global ambassadors and brands, have mass reach and exposure plans in place and who have a very innovative monetisation model that will drive benefit to ZipTel on an ongoing basis,” ZipTel director Keaton Wallace said.

“It is exciting for ZipTel and its shareholders to have its Zipt IP deployed within the Convo App, where we will share in the revenue without the requirement to use our own cashflow to fund its expansion.”

Shares in ZipTel were 94.4 per cent higher to 3.5 cents each at the close of trade.