SAN DIEGO--(BUSINESS WIRE)--US-based ChinaTel Group, Inc. (OTCQB: CHTL) today announced that effective as of the opening of business on July 25, 2011 it will have completed all corporate, legal and other actions necessary to change its name to VelaTel Global Communications, Inc., with new stock symbol OTCQB: VELA and new website www.velatel.com. The new name will better define the Company’s positioning as a key leader in deploying and operating wireless broadband and telecommunications networks worldwide.
“While a number of our projects are based in China, we are approaching the launch date of our wireless broadband network in Peru, and we are exploring and in some cases actively negotiating transactions for projects in many other countries in Eastern Europe, South America and Asia,” said George Alvarez, CEO of VelaTel. Colin Tay, VelaTel’s President, added, “Based on our global approach to delivering wireless broadband access to subscribers in emerging markets worldwide, we’ve now outgrown the name ChinaTel.”
VelaTel will continue its vision of becoming a leading 4G wireless carrier including:
- Perusat – The launch of a wireless broadband network covering seven targeted cites in Peru is scheduled for August 2011 (Perusat is a 95% subsidiary, which allows VelaTel to report 100% of Perusat’s financial results on VelaTel’s consolidated financial statements).
- Sino Crossings – VelaTel is engineering the infrastructure to light up the first 16,000 km of a total 34,000 km fiber backbone throughout China. The commercial launch of 16,000 km is estimated for the 4th quarter 2011 (VelaTel’s percentage of ownership in this joint venture combined with its control over management allows it to report 100% of the joint venture’s financial results on VelaTel’s consolidated financial statements).
- GoldenBridge – VelaTel is finalizing the infrastructure equipment order for a wireless broadband network in the Chinese cities of Xiamen and Fuzhou. The joint venture has applied for licenses in an additional 7 cities, expandable to 100+ cities. The commercial launch of the first two cities is estimated for the 4th quarter of 2011 (VelaTel’s percentage of ownership in this joint venture combined with its control over management allows it to report 100% of the joint venture’s financial results on VelaTel’s consolidated financial statements).
The new name conveys VelaTel’s position as an international leader in the wireless broadband arena. Moreover, the Company’s strategic international business approach has expanded its expertise in working with various foreign governments, overcoming cultural dynamics, and understanding how to package and market its services in a way that is culturally relevant to a foreign consumer base.
To learn more about VelaTel’s business initiatives visit www.velatel.com. The Company’s executives are now available to meet with media representatives and analysts for briefings.
About VelaTel Global Communications, Inc.
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, which it then operates by offering services attractive to residential, enterprise and government subscribers. VelaTel currently focuses on emerging markets where internet penetration rate is low relative to the capacity of incumbent operators to provide comparable cutting edge services, and/or where the entry cost to acquire spectrum is low relative to projected subscribers. VelaTel currently has project operations in People’s Republic of China and Peru. Additional target markets include countries in Latin America, the Caribbean, Southeast Asia and Eastern Europe. VelaTel’s administrative headquarters are in San Diego, California. For more information, please visit www.velatel.com.
Safe Harbor Statement
This press release contains forward-looking statements that involve risks and uncertainties. Actual results, events and performances could vary materially from those contemplated by these forward-looking statements. These statements involve known and unknown risks and uncertainties, which may cause the Company's actual results, expressed or implied, to differ materially from expected results. These risks and uncertainties include, among other things, product demand and market competition. You should independently investigate and fully understand all risks before making an investment decision.