With a population of 1.3 billion, China is the biggest country in the world and is experiencing a period of rapid growth in internet bandwidth needs. China’s internet user base increased by 26 million in 2006: a growth rate of 23.4%. China now has more internet and wireless phone users than any other country in the world. However, only 20% of China’s population is connected to the internet, compared to over 70% in the U.S. In addition, China is still experiencing economic growth the United States can only dream of. This underscores the fact that today, China is the right place to be and delivering broadband telecommunications services is a great way to take advantage of this very large market opportunity.
Current Operations
China Wi-Max is currently introducing service offerings to customers on its first fiber network in Beijing. The Company has a team in place in its Beijing office to provide engineering, customer support and sales. China Wi-Max has completed numerous marketing studies indicating that the market for high quality broadband connections in Beijing is underserved in capacity and/or quality of service. The Company’s network is designed to provide the reliability, redundancy, scalability and other features expected of a carrier class network. The Company intends to begin network operations in Hangzhou later this year. The Company currently owns fiber and has access to wireless spectrum in Hangzhou.
Geographic Expansion
The Company plans to expand into ten of the largest cities in China. In each city, China Wi-Max will purchase and deliver a fiber optic network with a wireless overlay in the most attractive areas to connect bandwidth-hungry business customers. The Company has a success-based business model, where capital is expended as customers are added.
Greater Coverage Through Wireless Technology
Through local Chinese partners, China Wi-Max has access to large blocks of 5.8GHz licensed wireless spectrum in Beijing, Shanghai and Hangzhou. With a wireless receiver on top of a customer’s building, and within range of a corresponding wireless receiver on the Company’s network, China Wi-Max will be able to provide broadband connections to buildings within 10 miles of its actual fiber. The ability to use wireless technology for last mile access dramatically expands the customer base the Company can provide services to and dramatically increases the value of its network.
High-Value Services
The Company is currently offering high-speed broadband connections to its initial customers in Beijing. With a large capacity high quality network, China Wi-Max anticipates offering additional high-value services such as virtual private networks (VPN), voice-over-Internet-Protocol (VoIP), Internet Protocol TV, video conferencing, software as a service, data backup and other services. In addition, demanding customers such as banks are increasingly using more than one service provider to ensure network redundancy. Purchasing redundant connections from the Company ensures continued network connectivity even if the customers primary provider’s service fails.
Seize the Opportunity
China Wi-Max is well-positioned to benefit from exploding growth in demand for broadband services in China, one of the fastest growing countries in the world. By combining fiber and wireless assets, the Company is reaching high-value business customers with a carrier-class network capable of providing huge bandwidth and advanced services.
