ORLANDO, Fla., June 24, 2008 (PRIME NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, Inc., today announced it has initiated research coverage on Elephant Talk Communications, Inc. (OTCBB:ETAK), an international telecom and multimedia content distributor.
Vivek Srivastava, MBA, RedChip Research Analyst, reported:
"ETAK has created a unique business model that is designed to provide traditional telecommunication (i.e., voice) and media distribution (i.e., streaming) services primarily to B2B customers and has developed a turnkey mobile platform that allows their client base to rapidly capture the explosive wireless subscriber market. The services are delivered through a streamlined network telecom with ETAK's proprietary network of switches and monitoring software, all of which are strategically positioned on four continents.
"ETAK's strategy has been to build on its fixed-line infrastructure while developing a mobile infrastructure to become a fully aggregated Mobile Virtual Network Enabler (MVNE) with its own integrated platforms, switches, and networks. ETAK will continue to build upon its network by adding MVNE capabilities at lower investment costs while spreading its overhead to give it a competitive advantage over traditional MVNEs and other competitors. The Company's business model is targeted to attract and facilitate customers who want to enter the mobile market but lack the financial resources and/or technical capabilities to invest in the needed infrastructure. ETAK's first MVNE contract with T-Mobile in the Netherlands is expected to be operational in June 2008, and management expects to add two to three national MVNE set-ups every year, over the next couple of years.
"We believe synergies from the integration of ETAK's recent acquisitions coupled with new partnerships and agreements, along with an expanding array of products and services, will result in higher revenue generation for the Company, particularly in the high-growth markets of the Middle East, Africa, and Asia where penetration levels are still low. Nonetheless, there is fierce competition in the industry, but the fact that ETAK provides a one-stop shop proposition for its clients with integrated billing solutions and has a low-cost structure serves to differentiate the Company from its competitors. Also, the Company's ability to exploit the new opportunities in the Mobile Virtual Network Operator (MVNO) segment further validates our belief," Srivastava continued.
"We recommend this investment with a rating of 'Speculative Buy' and a 12-month target price of $2.40," he concluded.
To receive a complimentary copy of the RedChip Visibility Initial Research Report for ETAK, please visit:
http://www.redchip.com/visibility/about.asp?page=vreport&reportid=117&from=06242008pr
For more information about Elephant Talk, visit http://www.redchip.com/visibility/investor.asp?symbol=ETAK
About RedChip Companies, Inc.
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Disclosure
None of the profiles issued by RedChip Companies, Inc. constitutes a recommendation for any investor to purchase or sell any particular security or that any security is suitable for any investor. Any investor should determine whether a particular security is suitable based on the investor's objectives, other securities holdings, financial situation needs, and tax status. Elephant Talk Communications, Inc. (ETAK) paid RedChip Visibility, a division of RedChip Companies, Inc., $50,000 for RedChip Visibility Program services, which included the preparation of this equity research report. RedChip Companies, Inc. is currently engaged by this company to provide investor relations services. ETAK agreed to pay RedChip Companies, Inc. a fee of $23,000 in cash per month and $45,000 in total value of equivalent shares of common stock under Rule 144 for four months of these services. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. This report is not a recommendation of a solicitation to purchase or sell any security, nor does it constitute investment advice. To the fullest extent permissible under applicable law, RedChip Companies, Inc. will not be liable to you or anyone else for the quality, accuracy, completeness, reliability, or timeliness of this information.