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VelaTel to deploy 4G networks in China through joint venture

(Xinhua)

15:54, October 27, 2011

CHICAGO, Oct. 27 (Xinhua) -- U.S.-based VelaTel Global Communications announced Tuesday that it would form a joint venture with a Chinese company to deploy fourth-generation (4G) communication and information service networks in the Asian country.

The joint venture with China's Next Generation Special Network Communication Technology Co., Ltd. (NGSN) will use the TD-LTE technology to bring high-speed, low-cost wireless internet connections to both businesses and individuals currently without access to broadband.

VelaTel said it was not as concerned about competing with China's domestic leader China Mobile as about tapping a new niche in the Chinese market.

"What we focus on is actually connecting more people to the internet around the world, rather than trying to steal (from) someone else who already has an internet customer," VelaTel Marketing Vice President Ryan Alvarez told Xinhua, adding that wider internet access is beneficial for companies seeking expansion.

"What 4G provides is a way for these emerging markets to leapfrog up into this 4G in a very efficient manner, because they want to be globally competitive," he said, noting that many of the data networks in China are still of 3G configuration.

Bin Lu, a division general manager of the NGSN, said there is a growing need for advanced internet and communications technology in China as the country continues to develop its industries.

"China is seeing unprecedented demand for vertical M2M (machine-to-machine) solutions," Lu said.

In addition to location-based services, 4G applications include home automation, energy saving/environmental protection, industrial automation, health care, precision agriculture, public security and video surveillance, he added.

With over 900 million mobile phone users according to official figures, China is a formidable market for 4G networks as the country looks to a future of high-speed mobile internet access.

VelaTel and other industry professionals are gathering in Chicago for the third annual 4G world conference to discuss innovation and marketing.

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