IQST - IQSTEL Digital Advances Microdrama Commercialization as First Mobile Operator Approves Platform Integration, Targeting Q1 2027 Launch

Operator serving approximately 14 million subscribers approves the start of platform integration, with a commercial launch targeted for Q1 2027.

IQSTEL Digital sees potential for up to 105,000 active paid monthly subscribers through this operator, putting the Company on a path toward its 2027 operating objective of 300,000 active paid monthly microdrama subscriptions.

NEW YORK, Nov. 10, 2026 /PRNewswire/ -- IQSTEL Inc. (NASDAQ: IQST), a global telecommunications and technology company, today announced an important commercial milestone for its Digital Services Division. One of the mobile operators included in the Company's recently announced microdrama commercial outreach initiative has approved moving forward with technical platform integration, with the objective of launching IQSTEL Digital's microdrama service during the first quarter of 2027.

The mobile operator, whose identity is not being disclosed at this time, serves approximately 14 million subscribers, providing a significant potential distribution channel for IQSTEL Digital's microdrama offering.

Based on the operator's subscriber base and preliminary commercial assumptions, IQSTEL Digital sees the potential to reach up to 105,000 active paid monthly microdrama subscribers through this operator.

If achieved, this subscriber level would represent approximately 35% of the Company's previously announced 2027 operating objective of 300,000 active paid monthly microdrama subscriptions, making this initial commercial opportunity a meaningful step toward that goal.

The projection applies the assumptions used in the Company's previously disclosed illustrative model: gross penetration of up to approximately 1.25% of the operator's subscriber base, or approximately 175,000 gross paying subscriptions, of which 60%, or up to approximately 105,000, are assumed to remain active paid monthly subscriptions. It does not represent existing subscriptions, committed customers or guaranteed results. Actual performance will depend on successful integration, commercial arrangements, launch timing, customer acquisition and retention.

From Commercial Outreach to Platform Integration

On October 8, 2026, IQSTEL announced that IQSTEL Digital had initiated commercial outreach to seven mobile operators whose combined subscriber bases total approximately 93 million.

Just over one month later, the Company is reporting its first advancement from commercial outreach to platform integration.

The proposal is designed to give operators a ready-to-launch short-form entertainment offering for their customers and an additional recurring revenue opportunity, distributed through their existing channels.

The integration process is intended to prepare the platforms for commercial deployment, including the necessary technical, operational and subscription capabilities.

IQSTEL Digital is targeting a commercial launch during the first quarter of 2027, subject to successful completion of integration, execution of definitive commercial agreements and remaining operational requirements.

"This is an important milestone in the execution of our Digital Services strategy," said Leandro Iglesias, President and CEO of IQSTEL. "Just over one month after announcing our initial commercial outreach to seven mobile operators serving approximately 93 million subscribers, the first operator has approved moving forward with platform integration. When an operator decides to integrate our platform, it is a clear signal that our commercial proposal is attractive to mobile operators."

"With approximately 14 million subscribers in this operator's network, we see the potential to reach up to 105,000 active paid monthly microdrama subscribers. This opportunity alone could contribute approximately 35% of our 2027 operating objective of 300,000 active paid monthly subscriptions."

Building a Scalable Recurring Revenue Business

The business model combines short-form mobile entertainment, operator distribution channels and recurring subscriptions, with the objective of generating additional revenue streams and potentially higher-margin contributions to IQSTEL's overall business.

The Company's previously disclosed illustrative financial model estimated that 300,000 active paid monthly microdrama subscriptions could generate approximately $1.8 million to $3.6 million in annualized profit contribution to IQSTEL Digital, assuming the modeled subscriber level and unit economics were maintained for twelve consecutive months.

The potential subscriber figures in this release do not constitute new financial guidance or a revision of the Company's previously disclosed financial model.

Commercial Expansion Continues

IQSTEL Digital continues advancing commercial discussions with the remaining operators in its outreach program, which together serve approximately 79 million subscribers, as well as with other mobile operators. The Company believes this first integration approval strengthens its position in those discussions, as it shows that its commercial proposal can move from outreach to execution.

The Company expects to share additional developments before the end of 2026, subject to commercial progress and appropriate disclosure considerations.

"Our strategy is to leverage IQSTEL's established telecommunications relationships to build recurring digital services revenue," Iglesias concluded. "This is just the beginning of our commercialization efforts."

About IQSTEL Inc.

IQSTEL Inc. (NASDAQ: IQST) is a global telecommunications and technology company operating through two core business divisions: Telecom and Digital Services. The Telecom Division is the foundation of IQSTEL's global platform, operating across 24 countries with more than 600 telecommunications carrier interconnections and delivering international voice, SMS, messaging, and connectivity solutions to some of the world's largest telecom operators and enterprise customers. Through these customer relationships, IQSTEL's platform has the potential to reach approximately 2.3 billion end users worldwide. Building on this global infrastructure and commercial reach, the Digital Services Division is focused on higher-margin technology solutions across Content Services, Artificial Intelligence, Intelligent Communications, Cybersecurity, Fintech, and Enterprise Automation. Built through nearly two decades of organic growth and strategic acquisitions, IQSTEL is leveraging the scale and reach of its Telecom business to accelerate the growth of Digital Services and drive its next phase of revenue and adjusted EBITDA expansion.

For more information:

Corporate website: www.iqstel.com

Investor Relations Portal: www.ir.iqstel.com

IQSTEL Telecom website: www.iqsteltelecom.com

IQSTEL Digital Services website: www.iqsteldigital.com

Official Investor Landing Page: www.landingpage.iqstel.com

Safe Harbor Statement: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding preliminary third-quarter and nine-month revenue; the Company's $430 million 2026 revenue objective and the fourth-quarter revenue required to achieve it; its longer-term objective of $700 million in annual revenue; the illustrative combined annualized revenue of IQSTEL and Ultranet; the timing, closing and financial contribution of the proposed Ultranet acquisition; the Company's expected consolidated cash-flow position; its ability to service the notes; its microdrama distribution plans with IDILIO TV; and third-party market estimates and projections, including those of Omdia and the GSMA. These statements are based on current expectations and involve risks and uncertainties that could cause actual results to differ materially, including: final third-quarter revenue differing from preliminary figures; failure to achieve the fourth-quarter revenue required to reach the $430 million objective; changes in customer demand, transaction volumes, competition and market conditions; failure to execute definitive agreements for the Ultranet transaction or to satisfy closing conditions; regulatory, compliance or due diligence outcomes; the accuracy of Ultranet's historical financial information; integration risks; political, economic, currency and regulatory conditions in Ultranet's African markets; historical seasonal patterns not recurring; the Company's ability to generate cash flow to service the notes; the secured nature of the notes and related covenants; dilution from the pre-funded warrants; failure to execute operator distribution agreements or achieve subscriber targets for microdrama services; the accuracy of third-party market data and projections, which the Company has not independently verified; the illustrative combined revenue figure not being indicative of actual combined results, which depend on the Company achieving its 2026 objective and the Ultranet transaction closing; and the other risks described in the Company's SEC filings, including its most recent Form 10-K and subsequent Forms 10-Q. The Company undertakes no obligation to update any forward-looking statement, except as required by law.

SOURCE iQSTEL