School communications technology company MGM Wireless has moved into the child care sector, signing 20 South Australian centres to its Outreach SMS text messaging service.

After six-months of test marketing with 300 centres in the State, the company will now target 9600 childcare centres Australia-wide with its service allowing centres to inform parents of centre events, late-breaking news and other information.

Executive chairman Mark Fortunatow forecast about 600 centres to adopt Outreach this year, generating about $450,000 for the company in annual revenue, a lift of 19 per cent on current sales.

Centres pay a base level Outreach licence each year of between $500 and $1000 and are charged for added services.

“As

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far as we can tell at the moment there are no competitors. It’s a greenfields market,” Mr Fortunatow said.

He said the Adelaide company was well-placed to build on its school truancy and SMS messaging systems.

“Centres see Outreach as a good fit

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with their culture – it helps them meet the demands of busy, working parents who want to stay informed about their children’s welfare and for whom mobile texts are a fast, discreet and well accepted from of communication,” he said.

MGM Wireless already had established alliances with childcare centre software management systems such as Spike, QikKids and kindcare to ensure its

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Outreach system can intergrate.

Shares in MGM Wireless were unchanged at 0.06c today.

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