2230354's patent-pending solution will eliminate roaming fees that mobile GSM users incur while traveling outside of their home markets. With the advent of smart phones, demand for mobile usage is soaring yet the current high cost of mobile roaming creates a barrier to usage. Roaming rates currently account for approximately 2 percent of carrier revenue with an average 80 percent margin, representing a global market in excess of US$20 billion. Upon completion of the acquisition, it is estimated that the new service will provide savings of 60 percent to 80 percent and more over normal roaming fees.
2230354's solution requires an easy, one-time insertion of a micro thin wafer SIM (the "Global Key") between the carrier SIM and the handset. The Global Key is invisible while the user is in the home market and only activates when the user travels outside the home network. While outside the home network, the Global Key activates, allowing friends, family and associates to call the home number which will ring customers wherever they are in the world. Additionally, the traveling customer can seamlessly make and receive calls in every country without paying his or her mobile operator back home. In effect, every use of the customer's mobile device outside the home network becomes local.
2230354's solution is simple and easy to use - no new handset, no new telephone number, no contracts and no pre-dial numbers. Users simply make and receive calls on their existing GSM handset with the Global Key inserted. Management of Polar Wireless believes that 2230354's solution is the only solution in the market today that can eliminate roaming fees while not requiring the user to use WiFi or data-enabled calls like Skype, Truphone or Google Talk. Additionally, the solution is the only solution that allows traveling customers to maintain their home number and handset with cell phone tower connectivity worldwide. Polar Wireless's previously announced the acquisition of certain intellectual property from 2230354 in consideration for the issuance of 5,000,000 shares of common stock. The proposed amalgamation transaction (which will result in Polar Wireless acquiring all of 2230354's intellectual property) will supersede such transaction.
Until the earlier of completion of the transaction of the definitive agreement, 2230354 has agreed to exclusively license to Polar Wireless its intellectual property on a royalty-free, worldwide basis. Completion of the transaction is conditional upon satisfactory completion of audited financial statements of 2230354. The transaction will be closed under the terms disclosed in the company's 8K filing today.