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We service the top player in every market that we serve. Whether that's wireless with Cingular, Verizon or AT&T on the IXC side, or some of the emerging companies like Vonage, and cable MSOs like Comcast, we serve the number one or number two company across the board.
Q: Do you feel that Synchronoss is a trendsetter?
A: I do believe we set the trend. We got funded during one of the worst times in history of telecom. I think that was one of the best events that happened to us. It forced the CSPs to realize that money is not in endless supply. Capital needs to be deployed and it needs to be employed very intelligently. We had a much more open mindset about our model, because we were essentially telling people, “There's a better way to put your capital to work. You should be able to preserve that capital, because it's not as easy to get anymore.”
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Q: What can we expect from Synchronoss in 2007?
A: We see two big market trends driving the business. If you saw earlier this year, we made a press announcement around us moving up the stack and allowing, on a device or a video phone, the ability to do a direct activation or content associated with an actual order. Synchronoss sees the high growth areas in 2007 being around the two fronts in which x-plays are happening. They're happening in the networks as well as in the devices themselves. We see the two trends of convergence in the networks and the handheld devices to drive the market.
Q: You've recently touted your success with Cingular Wireless. To what do you attribute this success
A: Our Cingular relationship dates back to our days with AT&T wireless. A big component in that was a very innovative way of thinking in terms of Cingular's new approach of using the
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What I'm seeing now is that the CSPs are saying that this is the way, and with more complex bundles and x-play offers the market, they want to write to our technology once and let us manage all of the moving parts associated with putting the customer into service. In the old days, we had a 'less filling' value proposition, and that's migrated to a 'tastes great' value proposition. We've always been able to stay two steps ahead because we are pretty true to our knitting. From day one, I was very consciously deciding that we were going to be the best software solution from the time a customer says “I want to buy this wireless device or put this circuit into motion” all the way up to where that device is up and running. We're not the guys to go to for network optimization or the company you would call to land a new customer. We've found a pretty clear knitting. Because we've built a market in that space, we can go fairly deep. You need deep domain expertise to be successful.
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online or virtual channel as a primary means of driving customer revenue. Most SPs, on average 2-4% take rates in e-commerce sales on a daily basis. Cingular's numbers are in the low teens. Ultimately, it's been about a push to drive as much automation and empower the customer as much as they can.
Q: How important is the race for X-Play?:
A: We think that it's going to be one of the biggest differentiators between the providers today. Synchronoss serves the big cable providers as well as traditional telecoms. I believe that as those forces compete over the next few years, the ability to get wallet share and mind share over their customers and provide value added services will be big. This is a great opportunity for Synchronoss. The more you try to drive these features to market, the more you drive the complexity in the ordering ends up becoming an issue, and the stronger our value prop becomes.
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