SurgePays expands MVNO customers and revenue
By Edlyn Cardoza
SurgePays, Inc., a FinTech company providing a complete suite of financial services and prepaid products to convenience and neighbourhood stores serving the underbanked market, updates the Emergency Broadband Benefit Program (“EBB Program”) rollout through the Company’s wholly-owned subsidiary, SurgePhone Wireless LLC.
As of November 30, 2021, EBB Program enrollments were over 19,000, with total revenue of over $4.2 million since launching the program in late August 2021. These enrollments were generated primarily in western Tennessee and northern Mississippi. SurgePhone has begun activating additional teams in California, Illinois and Missouri and plans to ramp sales aggressively in these markets before the end of the year.
“At the time of this announcement, we have surpassed the 22,000 customers goal, representing over $1,100,000 in relatively higher-margin recurring revenue every month. This is extremely exciting and thrusts SurgePays daily operations to positive cash flow. Having available capital from our recent up-list to the Nasdaq Capital Market will allow us to continue to accelerate enrollments nationwide and I expect to double our customer base in the next 60 days. We have revised our internal model from 5,000 monthly enrollments to 15,000 in January and 20,000 enrollments in February,” commented SurgePays CEO Brian Cox.
The EBB Program provides SurgePhone up to a $90 reimbursement for the cost of each tablet distributed and a $50 per customer per month (i.e., recurring) subsidy for data services. Additionally, the EBB Program allows one monthly service discount plan and one device discount per household. Eligible consumers need to enrol in the EBB Program through their participating retailer offering the connected devices.
SurgePhone has received approval to offer customers these discounted services in California, Colorado, Florida, Illinois, Maryland, Mississippi, Missouri, Nevada, New Jersey, Ohio, Oklahoma, Rhode Island, Tennessee, and Texas. SurgePhone is a mobile virtual network operator (MVNO) and operates both the SurgePhone wireless and Loco Rabbit wireless brands.
The preliminary EBB Program revenues are estimates prior to the completion of the Company’s financial closing procedures and review procedures by its external auditors and, therefore, may be subject to adjustment when the actual results are available.
IBSi Daily News Analysis
December 01, 2023
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