Sprint taps Canadian ASP for Web-based monitoring, billing of Internet services
Rawlson King, theWHIR.com
August 16, 2001 - IP Applications Corporation (www.ipapplications.com), a leading Canadian developer of Internet services and applications, announced that it has signed a five-year agreement with Sprint Communications (www.sprint.com) in which IP Applications' suite of Internet services will be bundled with Sprint's core product and marketed by Sprint to its customers.
IP Applications' iTAPP engine will be used by Sprint to offer its customers the ability on a real-time basis to provision, monitor, report on and bill for the Internet services they will provide. IP Applications' Web-based iTAPP and iCURO software provide access to real-time account management, provisioning, monitoring, billing, and extensive QoS monitoring.
iTAPP was designed with unlimited scalability in mind and can accommodate any number of new subscribers that Sprint will add.
"Our scalable architecture is designed to add new customers, such as Sprint with ease and flexibility, with limited outlay of capital. Our in-depth understanding of what ISPs need to succeed has resulted in concluding this significant contract with Sprint, a tier-one provider," says Curt Cranfield, President & CEO, IP Applications.
"Sprint represents an important milestone for our sales force as IP Applications continues to grow its revenues in the ISP marketplace," said Marc E. Levy, Director of Sales, IP Applications.
As part of the agreement, Sprint has the option to acquire an interest in IP Applications. IP Applications has issued warrants to Sprint that entitles it to purchase up to 2,000,000 common shares of the company on a one-for-one basis. Of the 2,000,000 warrants, 300,000 are exercisable by Sprint immediately at US$0.132 per share (CDN$0.20). The remaining 1,700,000 warrants become exercisable based on Sprint meeting minimum revenue requirements at an exercise price ranging between US$0.33 (CDN$0.50) to US$0.66 (CDN$1.00). The warrants have an expiry date of August 31, 2006. The issuance of the warrants by IP Applications to Sprint is subject to regulatory approvals.
"Strategic relationships, such as with IP Applications, are vital to Sprint's growth in the new economy. IP Applications will enable us to provide a more comprehensive, end-to-end Internet solution to our customers, giving them a stronger competitive advantage," said Keith Paglusch, President, Sprint E|Solutions.
The selection of IP Applications also indicates the growing competitive strength of ASPs in the Canadian IT marketplace.
