SMSI Nearing A Rollout With UScellular?

Posted on November 21, 2020 by Aaron Warwick

We’ve discovered a website that appears to indicate Smith Micro (SMSI) is near rolling out its white-labeled SafePath product with UScellular. UScellular is calling this product “Family Compass.” You can find more details on UScellular’s webpage here:

Note that when you click on the App Store or Google Play links on that webpage, you are taken to SMSI’s SafePath app. This will almost certainly be updated when the product is rolled out, and will direct users to a white-labeled Family Compass app. So it appears a little more work needs to be done before SMSI and UScellular actually release the product; but it’s clearly getting close. Right now, it appears Family Compass will be primarily using SMSI’s location-based capabilities, incorporating the Dyno 2 watch you can see displayed on UScellular’s linked webpage.

Although UScellular is far from a Tier 1 carrier, they are the US’s fourth largest carrier with approximately 5 million customers. While it’s too early to know the exact pricing details for this UScellular product, and SMSI’s contract terms with them, I think it’s fair to estimate SMSI will be paid around $3.50/month per subscriber to Family Compass, based on SMSI’s previous contract with Sprint for the basic Safe&Found service, before Sprint added the Tracker product. Based on that estimate, and assuming UScellular can get 1% of their customers on this plan–50,000 subscribers–the annual revenue for SMSI would be $2.1M. And remember, that’s at 90% gross margins. So even with a smaller carrier like UScellular, you can see how SMSI’s numbers can quickly become (bullishly) absurd!

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