Rocom hails cashless coup in deal to run US text-messager

By PETER GRIFFIN IT editor


Listed wireless technology company Rocom Wireless expects to boost revenue 30 per cent through taking over the operations of Bulletin Wireless.

Rocom managing director Richard Guy said the deal was a huge coup because his company paid nothing upfront for Bulletin, which was profitable and turning over "millions of dollars a year".

"We didn't have to outlay any capital. All we have to do is revenue-share back to the Americans."

Bulletin, a text-messaging platform specialist, is a United States company listed on the Nasdaq.

It has carried out its development work in Auckland, but that will now be moved to the US.

"They weren't getting the benefits of the New Zealand dollar and there weren't any tax breaks from the Government," Guy explained.

Of Bulletin's 20 local staff, several will move to the US, with Rocom picking up the rest.

The deal involves Rocom taking responsibility for about 100 Bulletin clients, including customer billing.

In an ironic development, Rocom will also take responsibility for the metering and tariffs for Telecom's eTXT customers.

The eTXT service allows users to send out bulk text-messages from a PC.

Rocom had a similar product known as easiTXT, which went head to head with eTXT. Now Telecom is a customer.

Guy said Bulletin built the platform for eTXT and had a patent on the service, which allows text-messages to be sent back to an email inbox.

Rocom had revenue of $3.1 million last year, so the Bulletin deal is likely to boost that by about $1 million annually.

Guy said there were great prospects for growth.