While it was a slow week heading into earnings season, we once again want to thank Glenn Bloxham-Mundy (@gabmlondon) for keeping things interesting by promising to offer yet another contribution to the GeoInvesting community. His next article will be on Konatel Inc (OOTC:KTEL), which comes courtesy of his research into its beginnings, and notably his delving into its Sean McEwen’s role as CEO in building the company after success with other ventures early on in his life. Glenn really focuses on McEwen, a practice which mirrors our process of looking deeply at management in a way to be able to understand how well-run corporations almost always invariably start with good leadership.
Glenn provided us with the Business Model/Industry section of his report, which he disclosed to us is still in progress. Glenn writes:
Konatel operates within the Telecommunications market which, after decades of fierce competition, has become a race to the bottom. Instead, McEwen suggests that the value in this industry comes from the plat-form companies operating within it through their software-based businesses, particularly in specialty verticals that many GeoInvesting members will know well: PaaS and CPaaS.
CPaaS stands for Communications Platform as a Service and is essentially a cloud-based platform that allows developers to add real-time communications features to their own applications without needing to build backend infrastructure and interfaces. Prior to this development, real-time communications have taken place in applications built specifically for these functions, e.g. Skype, FaceTime, WhatsApp, etc. However, over time companies noticed the friction caused by this – e.g. why can we call our banks via our native mobile phone app but yet we cannot video chat them through our banking apps? These real time communications apps have been the paradigm for a long time due to the high cost of building and operating a communications stack. However, now CPaaS offers a complete development framework for building real-time communications features without having to build your own. This typically includes software tools, standards-based application programming interfaces (APIs), sample code, and pre-built applications.
CPaaS and PaaS providers like Konatel are able to use cloud technology to offer clients of any size the ability to easily develop and embed communications features. Development teams using CPaaS can save on a whole host of costs: HR, infrastructure, and time to market. Moreover, with CPaaS companies, developers can pay exclusively for the services they require through competitive, consumption-based pricing models.
Please stay tuned as the article should be ready to go soon.
On a very related note, Maj, Geo’s co-founder, was able to sit down and have a casual conversation with Sean McEwen of Konatel and Joshua Ploude of Apeiron, one of Konatel’s wholly owned subsidiaries, an Internet Telephony Service Provider (ITSP) that owns and operates its own national digital telecommunications network supported by an “as a service” (CPaaS/UCaaS/CCaaS/PaaS) telecommunications SaaS (Software as a Service) platform.
They explain how some of KTEL’s telecommunications solutions may be differentiated from the solutions of its competitors.
A key takeaway from the conversation is that KTEL offers a true platform solution that can actually be complementary to product offerings of companies that at first glance seem like their competitors’ offerings.
Please see the full interview here.
For those of you that have yet to try GeoInvesting out, if you choose to become a premium subscriber you’ll get a chance to read the entire thesis on KTEL once it is released as well as view Maj’s interview with management.
We are thrilled that KTEL is the third microcap cloud communication stock that has entered our coverage universe, joining Crexendo, Inc. (OOTC:CXDO) and multi bagger Altigen Communications Inc (OOTC:ATGN). Again, you can trial GeoInvesting here.
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