SOURCE: VelaTel Global Communications, Inc.

VelaTel Global Communications, Inc.

April 02, 2012 08:00 ET

VelaTel Completes Its Acquisition of Subsidiary Herlong Investments Limited

Acquisitions in Croatia and Montenegro Pave the Way to Providing 3.5 GHz Wireless Broadband Access Covering More Than 6 Million Potential Subscribers

SAN DIEGO, CA--(Marketwire - Apr 2, 2012) - VelaTel Global Communications (OTCQB: VELA) (PINKSHEETS: VELA), a leader in deploying and operating wireless broadband and telecommunication networks worldwide, is pleased to announce that it has reached a major milestone by closing its acquisition of Herlong Investments Limited and its operating subsidiaries, Novi-Net and Montenegro Connect. The acquisition provides VelaTel a low cost entry into the geographic center of the Balkan countries and leads to other opportunities in the region. VelaTel is on track with its projected timeline to begin deployment of both networks during Q2 2012.

VelaTel closed the acquisition by paying 500,000 Euros along with credit for $1,000,000 of equipment down payment deposit VelaTel has made to its preferred equipment vendor ZTE Corporation. The closing proceeds will be used for deployment and expansion of Novi-Net's and Montenegro Connects' wireless broadband networks. Closing this acquisition allows VelaTel to report the financial results of these subsidiaries on its consolidated financial statements, including more than $1,000,000 existing annualized revenue of Novi-Net.

Novi-Net holds a nationwide license for 42 MHz in the 3.5 GHz bandwidth to provide wireless broadband access (WBA) in the Republic of Croatia. Novi-Net currently owns a data center, a network core and 11 base transceiver stations (BTS) that provide WBA and its related services to more than 1,500 existing subscribers in five counties in northern Croatia. VelaTel's planned expansion of this network will include Croatia's capital city Zagreb and its 1,000,000 population.

Montenegro Connect also holds a 42 MHz nationwide license in the 3.5 GHz bandwidth in Montenegro. Montenegro's year round population stands at 666,000, but it enjoys over 1 million affluent tourist visitors per year. Montenegro Connect is currently a "greenfield" operation with two BTS installed for testing purposes. VelaTel's Phase 1 deployment of this network will include Montenegro's capital city Podgorica and its 150,000 inhabitants.

VelaTel is in the final stages of negotiation with ZTE for the balance of equipment and services associated with the first phase of deployment.

About VelaTel Global Communications, Inc.
VelaTel acquires spectrum assets through acquisition or joint venture relationships, and provides capital, engineering, architectural and construction services related to the build-out of wireless broadband telecommunications networks, which it then operates by offering services attractive to residential, enterprise and government subscribers. VelaTel currently focuses on emerging markets where internet penetration rate is low relative to the capacity of incumbent operators to provide comparable cutting edge services, and/or where the entry cost to acquire spectrum is low relative to projected subscribers. VelaTel currently has project operations in People's Republic of China and Peru. Additional target markets include countries in Latin America, the Caribbean, Southeast Asia and Eastern Europe. VelaTel's administrative headquarters are in San Diego, California. For more information, please visit www.velatel.com.

Safe Harbor
This press release may contain forward-looking statements that involve risks and uncertainties. Actual results, events and performances could vary materially from those contemplated by these forward-looking statements. These statements involve known and unknown risks and uncertainties, which may cause the Company's actual results, expressed or implied, to differ materially from expected results. These risks and uncertainties include, among other things, product demand and market competition. You should independently investigate and fully understand all risks before making an investment decision.

Contact Information

  • VelaTel Contacts:

    Media/Analyst Relations
    Core Insights 360 PR
    Kimberley Brown
    Public Relations
    1-404-314-2900
    Email Contact

    Retail Investors
    VelaTel Global Communications, Inc.
    Tim Matula
    Investor Relations
    (Toll Free) 1-877-260-9170
    Email Contact