China WiMAX Signs LOI to Acquire Majority Interest in Chinese Basic Telecom Partner

China WiMAX (News - Alert) Communications, Inc., a multinational telecommunications and Internet service company, has signed a letter of intent “LOI” so as to acquire majority interest in a regional Chinese basic telecom partner. China WiMAX believes that the Chinese telecom operator with revenue of $3M (News - Alert) has significant growth potential within and throughout China and hence the step is crucial for China Wi-Max’s expansion.

The Company is planning to utilize around $1.8M to come up with a definitive agreement once it has acquired sufficient due-diligence on the telecom operator. Also the funding will be a part of the $10M Reserve Equity Financing Agreement with AGS Capital Group (AGS) which will ensure considerable expansion of operations in China.As per a release, Steven Berman who is the President and CEO of China WiMAX said, “This example of the intended use of the AGS funding is consistent with our fundamental investment objective of creating shareholder value through our business plan which includes Internet access, backhaul services, and value added services. We believe we have a first mover advantage in China, where the Internet market is now the largest in the world with the greatest growth potential.”

To meet the expanding broadband communications needs, China WiMAX plans to operate in ten cities in China by providing services such as IP Transport, internet access, and value added internet services. With the acquisition of fiber assets in Beijing and Hangzhou, China WiMAX currently owns 90 miles of fiber rings in Beijing and Hangzhou. It has also acquired access to licensed spectrum in Beijing, Shanghai and Hangzhou for the use of 5.8 GHz wireless frequency.

By leveraging wireless technology for the last mile, the number of potential customer’s increases and the Company’s fiber network can be leveraged at a low cost; thus adding a competitive advantage. Using the unique combination of fiber and wireless networks, China WiMAX aims to provide cost-effective, high bandwidth and high quality of service to its customers.

China WiMAX works hard to become a premier provider of managed international data services for foreign corporations operating in China, and provide international and Chinese travelers with world class roaming data services.