VelaTel has entered into a Business Agreement with New Generation Special Network Communication Technology Co., Ltd. (NGSN) in the People’s Republic of China (PRC). NGSN is a state owned company responsible for agriculture and transportation industries in China. The service company has entered into an exclusive services contract with NGSN to deliver the information services and also deploy and operate a 4G wireless broadband access network. The 4G network will employ TD-LTE technology using equipment already commercially available and manufactured by VelaTel’s strategic partner ZTE Corporation.
VelaTel will finance and the joint venture will own the infrastructure equipment. The operating company will distribute its services to consumers, wireless carriers, enterprises, automobile manufacturers, and original equipment manufacturers. In subsequent phases, the network will be expanded to other regions in China, and the services it offers will be expanded to include wireless broadband access. For further information please visit http://www.newgsn.com.cn/en/index.php.
~There have been no operations during 2013 associated with the NGSN Agreements. Neither party has sought to terminate the NGSN Agreements. Accordingly, it remains possible that there will be operations in the future. Since the Company made no investment associated with the NGSN Agreements, the Company has not been required to make a determination whether to impair any investment.