NEW YORK – AVIC Group International Inc. announced it has signed a letter of intent to form a joint venture with Beijing Catch to develop a nationwide paging system in China.
AVIC said it will provide financing for the expansion of the paging network to its projected level of about 100 stations and more than 3 million subscribers in three years. Beijing Catch initially will contribute four operational paging stations with 100,000 active subscribers, and will provide service on both local and nationwide frequencies. Beijing Catch also has located new markets where it plans to acquire or construct stations, AVIC said.
The venture is AVIC’s third major telecommunications project in China this year. The company previously announced agreements to develop a province-wide global service mobile network and a $1.6 million wireline project in China’s Hebei Province.
“This agreement clearly establishes AVIC as a major contender in China’s flourishing telecommunications market, with projects currently in development in the cellular, fixed wire and paging sectors,” said AVIC Chairman Joseph Wright. “Our partnership with Beijing Catch gives us current and proven expertise in the Chinese paging industry, and puts AVIC in the enviable position of entering that market with profitable stations already in operation.”
