Velatel Global Comm. (fka VELA)

[slverg]

Very bullish article on VELA..likes prospects following acq closing

















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Special Alert: VelaTel Global Communications (VELA) Closes China Motion Acquisition As Promised!
By Tobin Smith | March 6, 2014, 5:09pm GMT .




Special Alert: VelaTel Global Communications (VELA) Closes China Motion Acquisition As Promised!

Short Version: As VELA management promised in early January, with the delivery of the final $2.48M payment on Feb 28th, VELA has closed the acquisition for 100% of the outstanding shares of CM Mobile, the Hong Kong based mobile virtual network operator (MVNO) serving over 125,000 subscribers in China, Hong Kong, Taiwan and Macau with 75% discounted voice/data roaming service for their mobile devices.

VELA has taken full control of the company—deal done. VELA will now 100% consolidate and report on CM’s @$1.4M of cash in the bank and its $140,000 average monthly cash flow.

More important…VELA reports they are approximately 60 -80 days away from completing the game-changing 40X expansion of their CM Mobile network from 150,000 total capacity to 5 MILLION simultaneous user capacity—a 40X larger network that will be state-of-the-art 4G voice and data network.

Key Point: When this new 5 million subscriber 4G network capacity is fully tested and functional, StarHub Pte, Ltd—the $2 billion annual sales wireless/telco/cable carrier from Singapore—will begin to expand their relationship with CM Mobile to include the migration of as many as >2Million of their existing non-resident pre-paid phone card subscribers.

CM Mobile’s marketing agreement with StarHub will share all renewing pre-paid phone card customers NOT domiciled in Singapore in return for revenue share with CM Mobile. This sharing deal provides great value to StarHub phone card customers: up to 9 local phone numbers to StarHub’s subscribers on the CM Mobile network for 75% discounted voice/data roaming including PRC China and Hong Kong!

CM Mobile provides their MVNO network and customer service to that shared customer base in return for substantial revenue share arrangement.

Key Point: NBT Research estimates each new 4G MVNO subscriber at @$65-$75 value—NBT estimates one million plus new StarHub subscribers will migrate to
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http://bit.ly/1igx0jt