SurgePays Announces Strategic Partnership with SIN PIN
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Insights
The strategic alliance between SurgePays and SIN PIN is a significant move with potential to disrupt the telecommunications market within Hispanic communities. By leveraging SIN PIN's extensive reach, SurgePays can tap into a niche market that is often underbanked and underserved. This partnership is expected to bolster SurgePays' wireless subscriber base, which is a critical metric for telecom companies as it directly correlates to recurring revenue streams.
From a market research perspective, the Hispanic community in the US is growing, both in population and economic influence. As of the latest data, this demographic is showing a higher propensity for mobile usage and reliance on wireless services, making it an attractive segment for telecom providers. The collaboration with SIN PIN, which already has a foothold in this market, could provide SurgePays with a competitive edge over other service providers that have not yet tailored their offerings to this specific audience.
Furthermore, the mention of the Affordable Connectivity Program (ACP) is crucial. The ACP is a federal program designed to help low-income households afford internet service. By facilitating access to this program, SurgePays is not only expanding its potential customer base but also aligning with a socially responsible initiative, which can enhance brand loyalty and customer retention.
For investors, the partnership between SurgePays and SIN PIN should be scrutinized for its capacity to deliver on the promise of growth in wireless subscribers. The distribution agreement allows SurgePays to leverage SIN PIN's retail locations to offer prepaid wireless services and the ACP, which could result in increased revenue through both new subscriber acquisition and government subsidies associated with the ACP.
However, the cost structures associated with the expansion, such as the operational expenses in El Salvador and the terms of the agreement with SIN PIN, will need to be managed efficiently to ensure profitability. Investors should monitor subsequent financial statements for indicators of success, such as subscriber growth rates, average revenue per user (ARPU) and churn rates. These metrics will provide insight into the impact of the distribution agreement on SurgePays' financial health.
It is also important to consider the competitive landscape. If SurgePays can secure a first-mover advantage in these communities, it may enjoy a period of relatively low competition. However, as other companies recognize the market's potential, SurgePays will need to invest in maintaining and growing its market share, which could affect long-term profitability.
The distribution agreement between SurgePays and SIN PIN reflects a strategic shift in the telecommunications industry to focus on niche markets with specific needs. The underbanked and underserved populations represent a segment that has been historically overlooked by major telecom providers. By offering services tailored to the Hispanic community, SurgePays is not only expanding its market presence but also fostering inclusivity in the digital economy.
It's worth noting the operational aspect of having a team in El Salvador. This decision likely provides SurgePays with cost-effective customer and store support while offering service in Spanish, which is essential for customer satisfaction and retention in this market segment. The ability to provide culturally and linguistically relevant support can be a differentiator in the telecom industry, where customer experience is paramount.
Industry-specific terms such as 'prepaid wireless subscribers' and 'Affordable Connectivity Program' are key components of this partnership. Prepaid wireless plans are popular among consumers who do not have access to traditional banking services or who prefer not to enter into long-term contracts. The ACP, on the other hand, supports connectivity for low-income consumers, which is aligned with SurgePays' focus on the underbanked. Understanding these concepts is crucial for stakeholders to appreciate the potential breadth of the partnership's impact.
Expanding Reach into 1000s of Stores in Hispanic Communities
BARTLETT, Tenn., Jan. 23, 2024 (GLOBE NEWSWIRE) -- SurgePays, Inc. (Nasdaq: SURG) (“SurgePays” or the “Company”), a technology and telecom company focused on the underbanked and underserved communities, announced today that it has entered into a distribution agreement with SIN PIN, a telecommunications service provider to immigrant communities in the US, which we believe will drive wireless subscriber growth in the Hispanic community.
President of SurgePays, Jeremy Gies, said, “SIN PIN provides us thousands of distribution points to service immigrant populations beyond the traditional convenience store. We believe these stores represent a fantastic opportunity to increase our wireless subscriber base significantly. With over 150 team members working at our operations center in El Salvador, we are uniquely positioned to provide excellent store and customer support for Spanish-speaking customers. We are planning on making an impact in the Hispanic wireless market.”
The distribution agreement provides SIN PIN integrated access to the SurgePays software platform to activate prepaid wireless subscribers and allow consumers to apply for the Affordable Connectivity Program (ACP) at thousands of retail locations.
"We are very happy to work with a strong partner like SurgePays. This strategic partnership with SurgePays will enable SIN PIN to bring cost savings prepaid wireless and the ACP to our customers and help enrich their lives," said Alexander Barnes, COO of SIN PIN.
About Sin Pin
SIN PIN was founded in 2008, with corporate offices in Stuart, Florida. Since the beginning, SIN PIN has focused on offering innovative products that help their customers stay connected to the people who mean the most. SIN PIN offers a variety of prepaid products and telecommunications services to the immigrant communities in the US through a nationwide distribution network, with more than 2,500 active points of sale. SIN PIN has always focused on technology as a way to improve the customer experience. Customers and Resellers utilize SIN PIN's mobile applications and websites in order to buy and sell products and services with ease.
As a Retail Operator and licensed International Carrier, SIN PIN has shown consistent growth over the years, and managed to become a major player in the international telecommunications industry. SIN PIN now operates with offices in Florida, Guatemala, and Romania. SIN PIN continues to grow their Retail business and Wholesale Carrier Services business by leveraging strategic partnerships in order to enrich and diversify the products and services offered to their customers.
About SurgePays, Inc.
SurgePays, Inc. is a technology and telecom company focused on the underbanked and underserved communities. SurgePays’ technology layered platform empowers clerks at over 8,000 convenience stores to provide a suite of prepaid wireless and financial products to underbanked customers. SurgePays prepaid wireless companies provide services to over 250,000 low-income subscribers nationwide. Please visit SurgePays.com for more information.
Forward-Looking Statements
This press release includes express or implied statements that are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Forward-looking statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance and may contain projections of our future results of operations or of our financial information or state other forward-looking information. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future operational or financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control, including, without limitation, statements about the distribution agreement, subscriber growth and our ability to integrate our business with SIN PIN. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission (“SEC”), including in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022. The forward-looking statements in this press release speak only as of the date on which the statements are made. We undertake no obligation to update, and expressly disclaim the obligation to update, any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.
MZ Contact
Brian M. Prenoveau, CFA
MZ Group – MZ North America
brian.prenoveau@mzgroup.us
+561 489 5315
Media Contacts
Henry Feintuch / Doug Wright
Feintuch Communications
surgepays@feintuchpr.com
646-753-5710 / 646-753-5711
FAQ
What is the distribution agreement about?
What is the purpose of the partnership with SIN PIN?
How will the partnership impact SurgePays' wireless subscriber base?
What role does SurgePays' operations center in El Salvador play in the partnership?
