SUNNYVALE, Calif.-One month after announcing its restructuring, value-added service provider Mobiltek Corp. said it sold its subsidiary, Mobiltek Corp. California, to SinoConnect Ltd., a Hong Kong-based telecom system integration company. Mobiltek said it sold the subsidiary-along with the business’ nine service contracts with Chinese carriers-for $100,000.
Mobiltek said its primary focus is providing value-added products and services to the Asian market, including China. The company also noted that it has strategic agreements with SSI Affinity, a Michigan-based competitive local exchange carrier, and Mobile 10, a music and mobile entertainment company.
Mobile 10 sells content such as ringtones, news services, games, movies and mobile TV to U.S. wireless users. Mobiltek also resells Mobile 10’s content in foreign markets. SSI Affinity provides local, toll and long-distance service to corporate and residential customers, and is planning to launch wireless services in 2006. Mobiltek said its value-added services will be part of SSI Affinity’s wireless offerings.
“Mobiltek exists within a multi-hundred-billion-dollar global industry and now has a footprint in two of the world’s largest markets,” said George Moy, chief executive of Mobiltek. “There are certain niches and cross-selling opportunities that the company believes it can take advantage of in order to significantly increase revenue. We believe that we will be successful in capturing 2 percent of the business within our target markets, we believe we can grow this company to $100 million in revenue within three years.”
In a telephone conversation, Moy said that although Mobiltek is still fine-tuning its business development strategy, the company’s aim is funding small companies and then opening those companies up into U.S. and Chinese markets. Moy said Mobiltek plans to make announcements in early January on how it plans to carry out its strategy.
Mobiltek has been a publicly traded company listed on the OTC Pink Sheets since May.
