Friday, March 22, 2013,
Ashok Niroula
OUR MAIN FOCUS HAS BEEN WINNING ALERTS .... PURE AND SIMPLE.
We are pleased to announce our latest alert:
OTC: VELA.PK
Velatel Global Communications, Inc.
VELA is right in the center of the wireless internet space.
VelaTel Closes Its Acquisition of China Motion Telecom
VelaTel Global Communications (VELA), a leader in deploying and operating wireless broadband and telecommunication networks worldwide, announced this month that it has closed its acquisition of a 100% equity interest in China Motion Telecom (HK) Ltd. for a total purchase price of approximately US$6.4 million, with US$1.6 million paid in cash and the balance in the form of a promissory note payable within six months
China Motion, www.cmmobile.com.hk/eng/, is the leading mobile virtual network operator in Hong Kong, with more than 100,000 customers. China Motion generates approximately $12 million in revenue and $2 million in EBITDA (net of certain intercompany charges) on a consistent and annualized basis over its past two years' financial statements (FYE 3/31). VelaTel will be entitled to consolidate China Motion's future results into its financial statements as of the March 1 closing date.
VELA also intends to immediately upgrade China Motion's network operations center from 2G to 4G technology. "We expect to complete the upgrade in the next three to six months, and for this to result in a 25-50% increase in revenues by having the ability to offer customers enhanced data packages," noted VelaTel's CEO George Alvarez.
Let's take a close look at what this company does and the fields they operate in..
VelaTel acquires spectrum assets through acquisition or joint venture relationships, and provides capital, engineering, architectural and construction services related to the build-out of wireless broadband telecommunications networks.
So VELA are similar to an AT&T or Verizon Networks in the sense they deploy wireless networks.
These are then packaged up and offered on to either the residential, enterprise or government subscribers.
The key difference with VELA is they operate in emerging markets ....
We all know the opportunity emerging markets offer ..
VELA is a US company based right out of San Diego CA.
VELA is an American company but it avoids the crowded, over-regulated U.S. market and focuses instead on building networks in emerging markets.
VELA currently has project operations in People's Republic of China and Peru.
Additional target markets for VELA include countries in Latin America, the Caribbean, Southeast Asia and Eastern Europe.
VELA are able to offer cutting edge services in areas where people don't have the same abundance of choice as they do in the US.
In addition the cost to acquire spectrum is low relative to projected subscribers .
VELA has attracted much attention having risen over $56 Million over the last few years .
VELA has formed a strategic alliance with a $13 Billion dollar company telecommunications giant ZTE.
ZTE has annual sales in excess of $10 Billion and $12 Billion on the books.
It's fair to say that VELA is in good strong company with ZTE.
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