The Family Zone Cyber Safety Ltd (ASX: FZO) share price has been amongst the biggest movers on the market today.
In afternoon trade the technology company's shares are up 15% to 46 cents. This means its shares have climbed a massive 84% since this time last month.
Why have its shares surged higher?
This morning Family Zone advised that following a successful trial, it has signed a full commercial value-added services agreement with Indonesian mobile phone carrier Telkomsel.
According to the release, the agreement will see Family Zone enabling on-device and in-network technologies to launch its innovative parental control suite to Telkomsel's 165 million subscribers.
I can't say I'm surprised to see its shares rally on the news. Helping millions of parents in Asia's third-largest country moderate their family's online experience could be extremely lucrative for the company and generate significant and sticky revenues.
Whilst no price-point has been mentioned, in developed nations the company typically charges $5 to $10 per month for access to its platform. Presumably this will be much lower in Indonesia, but still very lucrative given the sheer size of the market.
Furthermore, with SingTel owning approximately 35% of Telkomsel, I believe that there is a reasonable chance that the platform could spread to SingTel's network in the future if it proves successful and adds value for Telkomsel.
Should you invest?
All in all, whilst it may still be early days I do think that Family Zone is well worth taking a closer look at.
After all, asides from the deal with Telkomsel, the company has a number of other avenues of growth.
One in particular which has caught my eye is its cyber safety platform to customers in the education sector. Last month Family Zone reported a 54% increase in the number of U.S. schools that have installed its platform.
Because of this strong growth potential, I would suggest investors add the company to their watch list today.
