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TWST: Could you fill us in on more details of your
performance- based financial model?
Mr. Sharma: For example, let's say you buy a new phone and
the first thing you want to do is personalize your phone with
new ringtones, wallpapers and download a few games. So, you
would open the phone and start using the carrier's search
application. Now the search application that the carrier has
would come with V-ENABLE's technology built into that phone.
That's what we do; we provide our technology to the carrier,
they white label it to their own brands, and the consumer sees
it. Now the consumer using that technology says, okay, I want to
personalize this phone, and they would ask for certain kinds of
ringtones they like, certain kinds of wallpapers they like and
whatever games they want to download. And to request the
information they are searching for those music and games and
wallpapers, they also see some advertising on the phone screen
during their searches, free download ads or some performance
marketing ads.
The users pay for the content they download, and while the
search is happening, the banners we create, we actually pay
money back to the carrier for allowing us to display those
banners. So, there is dual revenue stream for the carrier, one
is the actual content that was purchased, two is the search that
the consumer is conducting.
And second part of this is directory assistance. Directory
assistance essentially is using '411' on a cell phone. It is
very expensive, and what we are doing now with the carriers is
to make it cheaper or asking them to keep it at the same price,
but add advertising to it and a pay-per-call model so the
carrier can integrate more value to the $1.25 call.
So, let's say, you are in San Diego and you are looking to
go out for dinner and you say, find me an Indian restaurant. Our
enhanced directory assistant product comes up with the list of
Indian restaurants on the phone screen. If you call the
restaurant, that call is a part of the 'pay-per-call'
advertising model and V-ENABLE gets paid for successfully
connecting consumer with the advertiser.
Tickers included in this excerpt: PVT
For more information call (212) 952 7433. The
Wall Street Transcript does not endorse any of the comments made by interviewees, and does
not make stock recommendations.
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