AI Telecom Market M&A and Collaborations; IQSTEL's (IQST) Unique Collaboration Results in Shareholder Dividend

Rhea-AI Summary

IQSTEL (NASDAQ: IQST) will distribute a $500,000 one-time dividend payable in free-trading IQST common shares on December 30, 2025 to shareholders of record on December 15, 2025.

The dividend uses the August 29, 2025 closing price of $6.62 to calculate 75,529 total shares, producing a distribution ratio of 0.0173 per share (no cash in lieu; allocations rounded down). IQSTEL and Cycurion preserved a combined $1,000,000 in cross-holdings while issuing these pro‑rata share dividends.

Positive

• One-time share dividend of $500,000 payable December 30, 2025
• Total 75,529 IQST shares allocated using $6.62 closing price
• Maintains $1,000,000 cross-holdings to signal long-term partnership

Negative

• None.

Key Figures

AI telecom market size US$48.98 billion Projected market size by 2033 for AI in telecommunication

Dividend value $500,000 One-time pro-rata stock dividend by IQSTEL

Cross-holdings value $1,000,000 Mutual IQSTEL–Cycurion cross-ownership position retained

Dividend pricing reference $6.62 August 29, 2025 closing price used to calculate dividend shares

Total dividend shares 75,529 shares Free-trading IQST common shares to be distributed

Shares outstanding 4,374,822 shares IQST shares outstanding used to derive distribution ratio

Distribution ratio 0.0173 Dividend shares per IQST share held on the record date

TELUS Digital deal value US$539 million Approximate aggregate consideration for TELUS Digital acquisition

Market Reality Check

$4.20 Last Close

Volume Volume 47,177 is 0.55x the 20-day average of 85,734, indicating subdued trading ahead of the dividend timeline. low

Technical Shares at $4.20 are trading below the 200-day MA of $8.99 and remain far under the $32.68 52-week high, closer to the $3.90 low.

Peers on Argus

Sector peers show mixed, mostly modest moves, with PCLA up 3.21%, FNGR up 1.57%, KVHI up 0.93%, while KORE and SURG are down 2.14% and 1.71%, respectively. IQST’s 1.2% gain appears stock-specific rather than a broad telecom move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 03	Dividend confirmation	Positive	+2.5%	Confirmed $500,000 stock dividend with defined record and payment dates.
Nov 28	AI cybersecurity update	Positive	+2.4%	Phase One completion of joint AI‑cybersecurity program and planned stock dividends.
Nov 25	Alliance restructuring	Positive	+1.9%	Reaffirmed $1,000,000 cross‑holdings and one‑time ~$500,000 share dividends.
Nov 20	CEO interview	Positive	+4.8%	Management outlined revenue targets, asset per share metrics, and growth plans.
Nov 14	Q3 earnings	Positive	+12.7%	Reported record Q3 revenue, positive EBITDA metrics, and reaffirmed guidance.

Pattern Detected

Recent company news, including AI partnerships, dividends, and strong earnings, has consistently coincided with positive next-day price reactions.

Recent Company History

Over the last month, IQSTEL has reported record Q3 2025 results, an expanded AI‑cybersecurity partnership with Cycurion, and multiple updates about their stock‑based dividend strategy. News on November 14 highlighted strong revenue growth and guidance reaffirmation, while later releases on November 20, 25, and 28 emphasized strategic AI alliances and cross‑holdings. The December 3 confirmation of the $500,000 share dividend directly precedes this article’s broader AI telecom and M&A framing.

Market Pulse Summary

This announcement highlights IQSTEL’s one-time $500,000 stock dividend, structured via a defined record date and distribution ratio, within a broader AI‑telecom and cybersecurity alliance with Cycurion. It reinforces prior communications about cross‑holdings and long‑term collaboration. Investors may track execution of the December 2025 dividend, subsequent AI product progress, and future earnings trends, while also considering the company’s recent regulatory filings that outline both growth and going‑concern risks.

Key Terms

pro-rata dividend financial

"Each company will instead distribute $500,000 worth of its own shares as a one-time, pro-rata dividend"

A pro-rata dividend is a cash or stock payment that a company distributes to shareholders in direct proportion to the number of shares each person owns or the time they held those shares during the payout period. It matters to investors because it ensures a fair, predictable split of a company’s profits or distributions—like cutting a pie so everyone gets a slice sized to their share—affecting expected income, portfolio cash flows and the value per share.

record date financial

"Record Date: December 15th, 2025"

The record date is the specific day when a company determines which shareholders are eligible to receive a dividend or participate in an upcoming vote. It’s like a cutoff date; if you own the stock on that day, you get the benefits or voting rights. This date matters because it decides who qualifies for certain company benefits.

AI-generated analysis. Not financial advice.

AI Telecom market to reach US$48.98 billion by 2033

Vancouver, Kelowna, and Delta, British Columbia--(Newsfile Corp. - December 5, 2025) - Investorideas.com, a global news source and expert investing resource covering Telecom and AI stocks, issues a snapshot looking at M&A's and recent deals in the sector, featuring IQSTEL Inc. (NASDAQ: IQST), a Global Connectivity, AI and Digital Corporation providing advanced solutions across Telecom, High-Tech Telecom Services, Fintech, AI-Powered Telecom Platforms and Cybersecurity.

AI Telecom Market M&A and Collaborations; IQSTEL's (IQST) Unique Collaboration Results in Shareholder Dividend 

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/6292/276989_4455d0f9c45ac996_001full.jpg

According to DataM intelligence 4 Market Research LLP, "The global AI in telecommunication market is expanding rapidly, driven by increasing applications in network optimization, predictive maintenance, customer service automation, and fraud detection. AI technologies are becoming vital tools for telecom operators to enhance operational efficiency, deliver superior customer experiences, and enable intelligent decision-making. Growth is further supported by technological advancements in machine learning, natural language processing, generative AI, and edge computing, alongside rising investments in AI-powered telecom infrastructure. Industry dynamics are also being reshaped by strategic collaborations, cloud partnerships, and adoption of AI platforms by telecom service providers worldwide."

Looking at recent deal flow, on December 3^rd Ateko announced it has acquired SDK Tek Services Ltd. (SDK), a highly respected Calgary-headquartered data engineering and analytics integrator. This acquisition supports Bell's (TSX: BCE) (NYSE: BCE) strategic priority to lead in enterprise with AI-powered solutions and contributes to the development of a sovereign Canadian AI ecosystem.

From the news:
SDK's proven ability to transform raw data into actionable intelligence complements Ateko's expertise in AI-powered workflow automation and system integration. The addition of a talented team of AI and data specialists to Ateko significantly boosts its capabilities to help clients unlock the power of their data, embed AI into their operations and deliver measurable business outcomes while meeting stringent data security and privacy standards.

The acquisition bolsters Bell AI Fabric by strengthening Ateko's position as Canada's only full-stack sovereign AI platform and systems integrator. The expanded offering will accelerate the development and deployment of AI solutions at scale for leading enterprises and governments - a critical component to building a sovereign AI ecosystem.

Creating a very unique collaboration in the sector, on November 25^th IQSTEL Inc. (NASDAQ: IQST) and Cycurion Inc. (NASDAQ: CYCU) reported, "To further solidify the strategic alliance between the two companies, IQSTEL and Cycurion today announced an updated approach: Each company will instead distribute $500,000 worth of its own shares as a one-time, pro-rata dividend to its shareholders, while preserving the full $1,000,000 in cross-ownership shares."

News about the original agreement can be reviewed here:
https://finance.yahoo.com/news/iqst-iqstel-cycurion-cycu-execute-123000434.html

From the news:
Following a coordinated review, IQSTEL and Cycurion agreed that issuing dividends in their own shares-rather than redistributing cross-held shares-provides a more streamlined, efficient, and value-enhancing structure for shareholders. The original cross-shareholding swap is expected to proceed next year once the shares meet seasoning requirements.

A Clear Signal of Long-Term Investment and Joint Growth
By keeping the full cross-holding positions intact, IQSTEL and Cycurion reinforce to the market that their relationship is not transactional, but rather a long-term investment commitment, reflecting a shared strategy, joint product development roadmap, and tightly aligned corporate vision.

Both companies described the decision as a strong symbol of their status as "sibling companies," working collaboratively to expand their technological footprint in artificial intelligence, cybersecurity, telecom, and high-tech enterprise services.

Maintaining Cross-Holdings Strengthens Market Confidence
IQSTEL CEO Leandro Iglesias commented:

"By retaining the full $1,000,000 in shares of each other, IQSTEL and Cycurion demonstrate a deeper level of trust and alignment. This is a long-term partnership. We are building high-tech products together, entering new markets together, and showing shareholders that we are mutually invested in each other's future."

Recently, IQSTEL Inc. (NASDAQ: IQST) confirmed its plan to distribute a $500,000 dividend on December 30^th, 2025, payable in free-trading IQST common shares. This dividend is a key milestone as the company enters a new phase of long-term value creation and advances its broader strategy to evolve into a $1 billion revenue corporation.

From the news:
This dividend distribution stems from the strategic agreement executed with Cycurion CYCU, which strengthened the long-term cooperation and development roadmap shared by both companies.

Dividend Structure and Calculation
The $500,000 dividend will be calculated using the August 29, 2025 closing price of $6.62, resulting in:

• Total dividend shares: 75,529 free-trading IQST common shares
• Record Date: December 15^th, 2025
• Payment / Distribution Date: December 30^th, 2025
• Distributed by IQSTEL Transfer Agent: V-Stock Transfer

Only shareholders holding IQST common shares on the Record Date of December 15^th, 2025 will be eligible to receive this dividend.

With 4,374,822 shares outstanding, the resulting distribution ratio is 0.0173.

Shareholders can determine their allocation by multiplying their share count by 0.0173.

All allocations will be rounded down, and no cash in lieu will be issued.

Operational Note for Shareholders
To ensure a smooth and accurate distribution, IQSTEL has instructed its transfer agent to match DTC positions with broker-reported share balances.

CEO Comment
IQSTEL CEO Leandro Iglesias stated:

"We are proud of who we are as a company and what we have achieved together. IQSTEL has fulfilled every promise we made to our shareholders-not only delivering strong operating results, but also tangible, measurable shareholder value. Now, as we enter a new stage with a clear path toward becoming a $1 billion revenue corporation, our commitment to our shareholders is stronger than ever. Beginning this year, IQSTEL intends to issue dividends annually, tied directly to our performance and growth. This $500,000 dividend is a testament to our vision, our execution, and our unwavering dedication to rewarding those who believe in our mission."

Other recent transactions in the sector include: October 31, 2025 - TELUS Corporation (TSX: T) (NYSE: TU) and TELUS International (Cda) Inc. announced the successful completion of TELUS' previously announced acquisition of all outstanding multiple voting shares and subordinate voting shares of TELUS Digital not already owned by TELUS, for US$4.50 per share in cash and/or TELUS common shares, representing aggregate consideration of approximately US$539 million. Following closing, TELUS now owns 100% of TELUS Digital.

From the news:
"This acquisition marks an important milestone for TELUS and TELUS Digital," said Darren Entwistle, President and CEO of TELUS. "Together, we will accelerate the integration of world-leading digital customer experience solutions, AI-driven platforms and SaaS innovation across all lines of our business, including telecommunications, TELUS Health and TELUS Agriculture & Consumer Goods. As we integrate TELUS Digital within our TELUS family, our deep commitment to our customers and our talented team will remain our top priority. Together, leveraging our collective technological and human innovation, we will drive superior outcomes for our customers in Canada and globally, while also propelling enhanced growth opportunities for our shareholders. Notably, we expect this integration to generate approximately $150 million in annualized cash synergies through operational efficiencies, including accelerated AI-driven automation, business simplification and strategic cross-promotion of services, further strengthening our financial performance and prioritizing high impact opportunities to create significant shareholder value."

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FAQ

What is IQST's dividend announced for December 30, 2025 (IQST)?

IQST will distribute a $500,000 one-time dividend in free‑trading shares on December 30, 2025 to holders of record on December 15, 2025.

How many shares will IQST distribute for the $500,000 dividend (IQST)?

IQST will distribute 75,529 common shares based on the $6.62 closing price on August 29, 2025.

What is the distribution ratio per IQST share for the December 2025 dividend (IQST)?

The distribution ratio is 0.0173 IQST shares per common share outstanding; allocations are rounded down with no cash in lieu.

Who is eligible to receive IQST's December 2025 share dividend (IQST)?

Only shareholders holding IQST common shares on the record date December 15, 2025 are eligible; the transfer agent will match DTC positions with broker reports.

How does the IQST–Cycurion arrangement affect cross‑holdings and shareholder value (IQST)?

IQST and Cycurion preserved the full $1,000,000 in cross‑holdings while each issuing a $500,000 pro‑rata share dividend, intended to keep cross‑ownership intact and signal long‑term collaboration.