Elephant Talk Eyes Wireless Wholesale Play with Telnicity Acquisition

Elephant Talk Communications is targeting the wholesale wireless market in the United States with the $1-million acquisition of Telnicity, an mobile virtual network operator (MVNO) enablement company headquartered in Oklahoma City. Combined, the companies will provide billing and back-office services, fulfillment and management.

“Telnicity is a one-stop shop for outsourced solutions for any company in any industry to become a reseller of mobile communication services,” said Dane Gasio, founder and CEO of Telnicity. “Joining forces with Elephant Talk will allow the combined company to bring an expanded product offering to the U.S. market to be driven by a strong U.S. based management team with substantial in-market sales, marketing, and technology development experience. Elephant Talk will give Telnicity the depth and breadth of product offerings that allow it to be more competitive and attractive to larger U.S. companies.”

Telnicity offers cross carrier/cross technology billing, along with the telSPACE solution that allows its clients to sell, fulfill and care for multiple telecommunication services, including pre- and postpaid wireless, VoIP, Internet and long-distance. It also manages underlying carrier relationships: an MVNO can be up and running in three to four weeks, selling privately branded telecommunications services from a variety of carriers, the company said.

“We will work on a seamless and efficient global platform for MNOs, MVNEs, and MVNOs to operate by taking advantage of the technologies of both companies,” said Steven van der Velden, chairman and CEO at Elephant Talk Communications. “Telnicity’s relationships with several North American-based telecommunications companies provide a head start for the launch of Elephant Talk’s services into the U.S. mobile telecommunication market. In addition, Telnicity’s existing customer base will be able to leverage Elephant Talk’s technology and telecommunications relationships to offer more complete international calling and roaming packages.”

Elephant Talk will acquire the company’s existing customer contracts, carrier agreements and access to telSPACE and mCASH (Telnicity’s propriety turnkey back office infrastructure and billing systems). Telnicity’s six full-time employees will remain in their positions, while Gasio will become president of Elephant Talk North America.

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