mPay's mobile phone bill payment technology to good for ATM to resist

Should the system win the hearts of mobile phone users, mPay's revenues could rise to zł.100 million a year and its profits could surpass zł.20 million within the next five years. The system allows all kinds of bills to be paid using any type of a mobile phone. "This is a novel solution and as far as we know it is unique, with no counterpart anywhere in the world," said Tadeusz Czichon, ATM's deputy president. ATM has already signed a letter of intention with one of this country's mobile phone operators and a preliminary agreement with a medium-sized bank to test the application. "We will generate our first revenues in Q2 2006, but they will not be considerable. Should the product be successfull, we will start promoting it abroad," added Czichon. mPay has also developed a system to buy songs and films via mobile phone. "We project that within the next three years annual revenues from that source will reach a few million złotys with a profit of about zł.500,000," stated Czichon. ATM has not revealed the value of its investment. "mPay is a typical start-up, that is why the cost of buying 60% of its shares was not high," explained Czichon. The company's name will soon be changed to ATM - Mobile. ATM is planning further start-up projects. (Puls Biznesu, p. 4) D.W.