INGATE

From The Sip Trunking Experts

TMCNet:  Alternet Systems, Inc. (ALYI) Letter to Shareholder Highlights Mobile Payments Subsidiary Operational Accomplishments and Regional Leadership

[November 14, 2012]

Alternet Systems, Inc. (ALYI) Letter to Shareholder Highlights Mobile Payments Subsidiary Operational Accomplishments and Regional Leadership

MIAMI, FL, Nov 14, 2012 (MARKETWIRE via COMTEX) -- Alternet Systems, Inc. (OTCQB: ALYI) today released a letter to shareholders from company CEO Henryk Dabrowski. The letter highlights the operational accomplishments and leadership position of its mobile payments subsidiary, Utiba Americas. The letter is included in its entirety below.


Dear Fellow Shareholders, This letter is a follow up to our third quarter filing posted with the SEC on November 14th, which accurately depicts our financial performance for the period, but does not yet reflect important operational advances made during the first three quarters of the year. Specifically, in 2012, Alternet's mobile financial services subsidiary, Utiba Americas, has sold and deployed services in six countries of Latin America, making it the leading technology provider in the region with an estimated 35% market share of the deployments in these markets.

Regional Leadership Since its launch in early 2010, Utiba Americas has rapidly assumed a leadership role in the emerging market of mobile payments of Latin America. The evolving regulatory environment in South and Central America has at times complicated the sale and launch of services. Despite this challenge, Utiba Americas has sold the Utiba Mobility platform to financial institutions and mobile network operators throughout the region and has deployed services in Bolivia, Colombia, Ecuador, Guatemala, Honduras and Venezuela.

Utiba's customers in these countries target a total of 120 million potential users.

Bolivia. As recently announced by Utiba, Bolivia's largest bank and regional leader in micro-finance, Banco FIE, has selected Utiba's Software as a Service (Saas) solution. This project is in implementation. Additionally, the Utiba platform has been deployed in the networks of the country's two largest providers of mobile communications, who have yet to launch services.

Colombia. Utiba's platform has been deployed and is in use by one of the country's leading mobile communications providers. The platform is also being used in a pilot distributing government benefits (welfare payments), orchestrated by one of the country's leading business to business (B2B) technology providers.

Ecuador. In 2011 Utiba Americas won the public bid for the Central Bank of Ecuador mobile payments project pilot. The Bank has yet to select a provider for the full scale deployment, though a public bid is expected in the coming quarter.

Guatemala. In late 2011, Utiba Americas' hosted Mobile Financial Service platform was selected by Guatemala's largest bank and one of Central America's largest mobile operators to launch and manage an innovative mobile payment service. Since its soft launch at the end of 2011, the service has been expanded to include payroll services, bill payments, government subsidies and mobile remittance. The service has experienced a significant increase in adoption in the summer of 2012.

Honduras. In early 2013, a new mobile payment service provider will convert its current pilot, running on the hosted Utiba Americas platform, into a commercial service, offering third party bank branch services, business to business mobile collections, bill payment and domestic remittances.

Venezuela. In 2011, Utiba Americas sold and deployed its electronic recharge (top-up) platform for a Venezuelan mobile network operator, which will in 2013 expand the platform's services to include mobile commerce. Utiba Americas expects to launch additional projects in the Venezuelan market in coming months, which will include the use of a companion card tied to the mobile wallet, an important element of Utiba's Converging Payments Strategy.

Regional Deployments. Regional third party payments provider Movilway continues to deploy the Utiba electronic recharge (topup) platform throughout its distribution network in the Central and South American region. Movilway is currently in 12 countries with more than 80,000 retailers.

Utiba Americas expects to announce new regional contracts before the end of 2012 that will potentially expand its Mobile Financial Services platform to another 27 countries across the globe.

Partnerships In the coming quarter, both Utiba and Utiba Americas will announce a number of strategic partnerships with companies with complementary product offerings. Pending agreements include an important regional channel partnership and a complementary suite of business analytics tools for microfinance, credit assessment, and mobile retail purchases.

Already announced in this year are agreements with i2c, Inc., Validsoft, and Spindle, which provide access to open loop payment processing, advanced mobile transaction authentication services, and a low cost acceptance network, respectively, and build upon Utiba's participation in the MasterCard Mobile Money Partnership Program announced in February.

On a separate note, one which augurs well for future success, Utiba Americas and Utiba continue to strengthen and broaden their relationship. The two companies are dedicated to making the Utiba brand and its products the preferred global solution. To that end, both entities leverage each other's capabilities and relationships and management are in constant contact to ensure seamless and timely product delivery and success.

Revenue Recognition and Accrual As discussed in earlier shareholder communications, all of Alternet's revenues currently come from our mobile payments subsidiary, Utiba Americas, which has been changing its product mix from a traditional software license toward the sale of software as a service (SaaS), or from a one time revenue event to a monthly recurring revenue stream over a period of years. This shift is in keeping with industry trends towards the use of cloud computing and based upon an evaluation of customer needs. This shift also results in a delay in recognizing revenues and per accounting practice, accrual only of the revenues billed in a given period.

As a result, the value of Utiba Americas' multi-year agreements is not evident in our financial statements, as we are only able to bill for services when the project has been delivered, and monthly services fees are billed and booked for the period.

International Mobile Security (IMS) -- Cyber Security Subsidiary IMS' strategic partnership and reseller agreement with UK based Delma Technologies has effectively increased the company's international sales force and given IMS access to Delma's products and resources.

Based upon the early success of this relationship and complementary nature of the two companies' technologies and services, we have begun exploring additional joint efforts, to include software development and combined delivery and support efforts. We expect these efforts to permit a timelier closing of opportunities, which has caused a delay in reporting revenues at the subsidiary.

Conclusion I am proud of the accomplishments of Alternet and its subsidiaries, in particular of the leadership position achieved by Utiba Americas. When we began marketing the Utiba Mobility platform in early 2010, we knew we had chosen to partner with the best technology provider, and we correctly anticipated that mobile financial services in Latin America would evolve differently than in Asia- Pacific and Africa, where the majority of the worlds' deployments had taken place previously. We quickly determined that the regulators of the region would favor financial institutions, and that financial institutions in turn would view a mobile payment platform differently than a mobile network operator, and would welcome the software as a service (SaaS) business model. This product development has been positively received in Latin America and elsewhere; in fact, we expect to announce global SaaS clients for Utiba Americas in the coming quarter.

This type of product innovation is an indication of the excellent business development and technical team we have assembled here in Miami. With this talent, we expect to lead the industry for years to come.

I would like to extend my thanks to Alternet's personnel and that of our subsidiaries for the hard work during this important year, and to our shareholders for their continued support.

Sincerely, Henryk Dabrowski Alternet CEO About Alternet Systems Inc.

Alternet Systems Inc. (OTCQB: ALYI), a US corporation headquartered in Miami, Florida, is an investment holding company focused on the complimentary, high-growth markets of cyber-security and mobile financial services. Through its subsidiaries, Alternet captures and converts the extraordinary growth and opportunities surrounding the explosion of mobile phones worldwide. Its cyber-security subsidiary, International Mobile Security (IMS), provides mobile and digital security solutions to law enforcement agencies. Alternet's mobile financial services subsidiary, Utiba Americas, is a joint venture with Utiba Pte, the leading developer of mobile payment software solutions. Utiba Americas is deploying mobile financial services solutions for mobile network operators, financial institutions and third party payment service providers throughout the Americas region. More information about Alternet and its subsidiaries can be found at www.alternetsystems.com and by following the company on Twitter www.twitter.com/alternetsystems.

"SAFE HARBOR STATEMENT" UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the Company, are forward-looking statements that involve risks and uncertainties.

There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

Media Contact at Alternet: Erin Clancy VP Marketing Email Contact Investor Relations Contact at Alternet: Investor Relations Email Contact 1-888-823-8494 SOURCE: Alternet Systems, Inc.

http://www2.marketwire.com/mw/emailprcntct id=C84520E745C0B7AF http://www2.marketwire.com/mw/emailprcntct id=165D99E588840722

[ Back To SIP Trunking Home's Homepage ]

Loading
Subscribe here for your FREE
SIP TRUNKING enewslettter.

Featured Partner


Featured Whitepapers

SIP Security for the Enterprise
Voice over IP (VoIP) is incorporated into a variety of computer networks, both public and private, and used for everyday transactions and communications among carriers, businesses, government agencies...

Making A Broadband Purchase Decision
Businesses today have many options for broadband connectivity. Clarifying your particular business needs prior to selecting a broadband provider will ensure an optimal match of broadband service to your requirements.

Voice-Optimized Network Delivers Premier Call Experience
Customers equate call quality with business quality. Real-time communication, interpersonal interaction, and the cordial tone of a call center representative can create a positive impression of your business that no email can match.

Featured Case Studies

Business Telecom Expenses Reduced 50%
A small to medium sized company in the midwest was interested in migrating to IP Communications, but in today's economy, they were hesitant to upgrade their communication system due to their perception that the cost would outweigh the benefits.

Multi-State Company Cuts Telecom Costs 50%
A multi-site, multi-state company with extensive monthly long distance fees and toll-free charges did not have adequate broadband for Broadvox SIP Trunking requirements, nor did they have a SIP enabled telephone system.

Discover Leisure Connects Remote Users to its IP-PBX
Discover Leisure is one of the largest resellers of caravans and motor homes in the UK. With 15 branch of?ces all over the country, the company spent a great deal of money every month just on internal phone calls.

Featured eBOOKS

Internet+: The Way Toward Global Unified Communication
Connecting the telephony of the enterprise PBX or Unified Communications (UC) system using SIP trunks instead of conventional telephone lines has been very successful in recent years.

What is SIP Trunking? Edition 2
SIP trunking is becoming more of a focus for service providers. One key issue many service providers face when deploying SIP trunks is NAT, or Network Address Translation, traversal.

What is SIP Trunking? Edition 1
A vast resource for information about all things SIP - including SIP, security, VoIP, SIP trunking and Unified Communications.

Featured Videos

Broadvox VAR Testimonial VAR 1:
Part 1 of the VAR (Value Added Reseller) Partner Program Testimonials for Broadvox...

E-SBCs AS The Demarcation Point:
Ingate's Steve Johnson talks to Erik Linask about the role session border controller plays as the demarcation point at...

Demystifying DPI
How can deep packet inspection protect your SIP traffic as well as your entire network?

Featured Resources

Partner Program Overview:
Over 4,000 VARs, Master Agents, Solution Providers, and Independent IT Professionals trust Broadvox. We offer customized services and solutions to fit seamlessly into any company's business model. And when you partner with Broadvox, every member of our team stands behind you and your customers 100%...

SIP Trunk UC Summit

What's New

Presenting the New Ingate/Intertex Website:
Internet+ is an extended Internet access allowing high quality SIP (Session Initiation Protocol) based real-time person-to-person communication, everywhere and for any application. It applies to both fixed and mobile networks ...

Featured Blogs

Featured Webinars

Secure SIP Trunking:
What You Need to Know

Successfully Deploying Enterprise SIP Trunking:
Tools and Techniques for Overcoming Common Roadblocks

Featured Podcasts

Getting the Most Out of Your SIP Trunks:
Ingate's Steve Johnson and TMC's Erik Linask discuss how best practices forgetting the most out of SIP Trunking services and common pitfalls to avoid.

Featured Datasheets

Ingate SIParator E-SBCs
Adopting SIP is a simple process with the Ingate SIParator, the secure enterprise session border controller (E-SBC). The SIParator makes secure SIP communications - including VoIP,SIP trunking and more - possible while working seamlessly with your existing network firewall.

Ingate Firewalls
Everyone is talking about enterprise usage of VoIP, instant messaging and other types of realtime communications including presence and conferencing.

SIP Trunk Solutions for Service Providers
The award-winning Ingate Firewall and Ingate SIParator deliver a high quality, reliable SIP trunk connection between the customer's IP-PBX and the service provider network, and solve interoperability issues to simplify deployments and support for remote diagnosis of reported issues.