In the news release, IQST – IQSTEL Digital Models an Illustrative $14.4 Million to $21.6 Million in Annualized Consumer Billings at 300,000 Active Paid Monthly Microdrama Subscriptions, issued 17-Sep-2026 by iQSTEL over PR Newswire, we are advised by the company that both the headline and sub-headline have been updated. The complete, corrected release follows:

IQST – IQSTEL Digital Models $1.8 Million to $3.6 Million in Potential Annualized Profit Contribution from Microdrama Subscriptions

Illustrative Scenario of 300,000 Active Paid Monthly Subscriptions Would Generate $14.4 Million to $21.6 Million in Annualized Consumer Billings, Shared Among Mobile Operators, Content Partners and IQSTEL

- Consumers are expected to pay approximately $4 to $6 for each active monthly microdrama subscription

- Total subscription revenue would be shared among the participating mobile operator, content partner and IQSTEL

- IQSTEL believes the net revenue it receives from the service could represent a higher-margin recurring revenue stream relative to its traditional telecommunications business

- IQSTEL Digital estimates that each active monthly subscriber could generate approximately $0.50 to $1.00 in monthly profit-contribution.

- At 300,000 active monthly paid subscriptions, the model could represent approximately $1.2 million to $1.8 million in monthly consumer billings, or approximately $14.4 million to $21.6 million annually

- At the same subscription level, IQSTEL Digital estimates potential monthly profit-contribution of approximately $150,000 to $300,000, equivalent to an annualized range of approximately $1.8 million to $3.6 million

- IQSTEL Digital has created an original microdrama demo to explain the format and its carrier-billing monetization model

NEW YORK, Sept. 17, 2026 /PRNewswire/ -- IQSTEL Inc. (NASDAQ: IQST) ("IQSTEL" or the "Company"), a multinational technology company providing telecommunications, fintech, AI-powered communications, cybersecurity, content and digital infrastructure services, today outlined the potential economics of its mobile-first microdrama distribution initiative through IQSTEL Digital.

To demonstrate the format through the product itself, IQSTEL Digital has created an original microdrama demo. The Company invites investors, mobile operators, prospective business partners and consumers to watch the demo and experience how mobile-first vertical storytelling can support engagement, monthly subscriptions and recurring digital revenue.

Monthly Subscription Economics

Under the commercial model currently contemplated, consumers would pay approximately $4 to $6 for each active monthly microdrama subscription offered through participating mobile operators.

This monthly subscription would provide access to premium, mobile-first vertical entertainment. The service is intended to complement other entertainment subscriptions consumers may already maintain by offering a different viewing experience: short, serialized stories designed specifically for smartphones and for frequent viewing throughout the day.

The total monthly subscription revenue would be shared among the participating mobile operator, content partner and IQSTEL.

The mobile operator would provide customer access, billing and distribution. The content partner would provide the platform and premium vertical content. IQSTEL would provide commercial access to operators, integration support and the distribution and monetization infrastructure required to bring the service to mobile subscribers.

After anticipated revenue sharing and directly attributable operating expenses, IQSTEL Digital currently estimates that each active paid monthly subscription could contribute approximately $0.50 to $1.00 per month in profit contribution attributable to IQSTEL Digital.

At an illustrative level of 300,000 active monthly paid subscriptions, consumers would generate approximately $1.2 million to $1.8 million in monthly subscription billings. This would be equivalent to approximately $14.4 million to $21.6 million in annual consumer billings.

"The economic opportunity begins with a recurring monthly subscription of approximately $4 to $6," said Leandro Iglesias, President and CEO of IQSTEL. "That subscription revenue is shared among the mobile operator, content partner and IQSTEL, aligning the interests of all three parties. For IQSTEL, the objective is to convert our existing telecom relationships into recurring, high-margin digital revenue."

Illustrative Monthly Subscription Scenarios

The following scenarios illustrate the potential economics of the contemplated business model at different levels of active paid monthly subscriptions:

Each scenario is based on active paid monthly subscriptions priced at approximately $4 to $6 per month. The consumer-billing figures represent the total amounts paid by consumers before revenue is shared among the participating mobile operator, content partner and IQSTEL. They do not represent revenue attributable exclusively to IQSTEL.

The estimated profit-contribution figures are based on IQSTEL Digital's assumption that each active paid monthly subscription could generate approximately $0.50 to $1.00 in monthly profit-contribution attributable to IQSTEL Digital after anticipated revenue sharing and directly attributable operating expenses.

Annualized amounts assume that the applicable number of active paid monthly subscriptions, subscription pricing and estimated unit economics remain constant for twelve consecutive months. The scenarios are mathematical illustrations only and do not represent existing subscriptions, contracted revenue, forecasts or financial guidance.

A High-Margin Opportunity for IQSTEL Digital

IQSTEL's traditional telecommunications operations are primarily high-volume businesses. The microdrama initiative is designed to introduce a recurring digital revenue stream with a potentially higher margin on the net revenue received by IQSTEL.

The model does not require IQSTEL to recognize or retain the entire subscription price. Instead, IQSTEL expects to receive an agreed share of the revenue generated by each monthly subscription.

IQSTEL believes that the scalability of its existing operator relationships and supporting infrastructure could allow additional subscriptions to be added without a proportional increase in IQSTEL Digital's operating expenses. If achieved, this operating leverage could improve IQSTEL Digital's operating margins as monthly paid subscriptions grow.

Actual margins and profit-contribution will depend on definitive operator agreements, revenue-sharing arrangements, subscription pricing, customer activation, subscriber retention and churn, promotional periods, taxes, refunds, collection rates, content costs, technical integration, marketing expenses and market acceptance.

A Rapidly Expanding Global Entertainment Category

Microdramas are scripted and serialized stories created specifically for smartphones. Episodes generally run between one and three minutes, are filmed vertically and use fast-paced narratives and cliffhangers to encourage frequent viewing and continued engagement.

According to Omdia, global microdrama revenue reached approximately $11 billion in 2025 and is expected to grow to approximately $14 billion by the end of 2026.

According to Omdia's analysis of Q4 2025 Sensor Tower data, U.S. users of ReelShort spent an average of 35.7 minutes per day on the mobile app, compared with 24.8 minutes for Netflix, 26.9 minutes for Amazon Prime Video and 23.0 minutes for Disney+.

While major streaming platforms continue to have significantly larger monthly active user bases, the data demonstrates the strong engagement intensity achieved by the microdrama format among its existing mobile users. IQSTEL believes these trends demonstrate a broader change in entertainment consumption. Mobile-first audiences are allocating a growing share of their viewing time to short-form vertical video designed around how consumers naturally use smartphones.

Vertical entertainment is not necessarily replacing traditional horizontal programming. Instead, IQSTEL believes it is developing into a complementary category that competes for mobile attention by combining the convenience of social video with the emotional engagement and serialized storytelling of traditional television.

"Consumers still want compelling stories, but the screen, duration and viewing experience are changing," Iglesias said. "The growth of microdramas shows that premium storytelling can be adapted to the mobile behavior consumers already demonstrate every day."

Turning Telecom Relationships into Recurring Digital Revenue

IQSTEL maintains commercial relationships with more than 600 telecommunications operators across 24 countries. The networks operated by these companies collectively serve approximately 2.3 billion end users worldwide.

These relationships have historically been monetized through voice, SMS, messaging and connectivity services. IQSTEL Digital's strategy is to use the same commercial and technical foundation to distribute higher-margin digital products and services.

Through integrations with participating operators, the microdrama service may be offered through:

- Direct carrier billing, with subscription charges placed on the subscriber's existing mobile bill or deducted from a prepaid balance;

- Standalone monthly subscriptions;

- Entertainment and data-plan bundles; and

- Operator-sponsored promotions and customer-retention programs.

Direct carrier billing could reduce the payment friction associated with credit cards, app-store accounts and separate payment relationships, particularly in Latin American and emerging markets.

For participating operators, microdramas could provide incremental subscription revenue and a differentiated customer-engagement product without requiring the operator to produce original content.

"The strategic asset is not only the content," said Jorge Becerra, CEO of IQSTEL Digital.