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November 01, 2011

VelaTel in Pact with Next Generation Special Network Communication Technology to Provide a 4G Network in China

VelaTel Global Communications, a provider of wireless broadband and telecommunications networks services, announced it has signed a business agreement with Next Generation Special Network Communication Technology (NGSN) in the People's Republic of China (PRC).

NGSN was founded to support other state owned companies and central government agencies in advancing private network telecommunications technologies. The company is involved in projects related to transportation, including GPS tracking technologies, remotely delivered education services, and agriculture technologies.

Under the terms of the agreement, VelaTel will form a PRC operating company to be jointly owned with NGSN but subject to VelaTel's control. It will deliver information services and a 4G network in China in association with NGSN. They will deploy a 4G network that will employ TD-LTE technology using equipment already commercially available and manufactured by VelaTel's strategic partner ZTE Corporation.

The joint venture will be financed by VelaTel. It will also own the infrastructure equipment and provide all engineering and network management services. The company already completed engineering services for 29 major PRC cities in connection with a different WBA project.

 VelaTel and NGSN expect to finalize the services contract and form the joint venture company before the end of 2011, company officials said.

“China is seeing unprecedented demand for vertical M2M (machine to machine) solutions,” said Lu Bin, NGSN's WBA Division GM, in a statement. “In addition to location based services, applications include home automation, energy saving/environmental protection, industrial automation, health care, precision agriculture, public security and video surveillance.”

The first phase of the network VelaTel will deploy and operate for NGSN will cover the Heilongjiang Province in northeast China, with a population of approximately 39 million. The network will utilize NGSN's existing value added services license to deliver personalized navigation and location based services (LBS) including GPS, mobile resource management solutions.

“The NGSN project represents an expansion and diversification of the services VelaTel delivers, particularly in China,” said VelaTel's CEO, George Alvarez, in a statement. “Instead of a retail consumer model, and the attendant challenges of marketing budgets and competition with other carriers for subscribers, this transaction reflects a business to business model, with NGSN acting as both the 'anchor tenant' and the broker with a financial incentive to expand the network's paid users by recruiting other affiliated businesses.”

Earlier in August, VelaTel announced its GO MOVIL wireless broadband access network went “live” in all eight cities where it holds licenses. The GO MOVIL network provides the first true 4G broadband internet access in Peru to the approximately five million inhabitants of the targeted cities, according to company officials.



Rajani Baburajan is a contributing editor for MobilityTechzone. To read more of Rajani's articles, please visit her columnist page.

Edited by Jennifer Russell


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