VelaTel Global Communications (VELA), which was previously known as ChinaTel, said it has created a joint venture with China-based Next Generation Special Network Communications Technology to deploy a TD-LTE network in China.
VelaTel said the venture, which it will control, will use equipment already commercially available through partner ZTE. VelaTel added that it will finance the venture as well as own the equipment and provide all engineering and network management services.
The initial deployment is expected to cover the Heilongjiang Province in northeast China and will use NGSN’s existing value-added services license to deliver navigation and location-based services, and mobile resource management. NGSN currently provides transportation support through GPS tracking technologies, delivery of remote education services and agriculture technologies.
“The NGSN project represents an expansion and diversification of the services VelaTel delivers, particularly in China,” explained George Alvarez, VelaTel’s CEO. “Instead of a retail consumer model, and the attendant challenges of marketing budgets and competition with other carriers for subscribers, this transaction reflects a business to business model, with NGSN acting as both the ‘anchor tenant’ and the broker with a financial incentive to expand the network’s paid users by recruiting other affiliated businesses.”
In addition to its China operations, VelaTel also offers mobile broadband services in Peru.
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