SOURCE: VelaTel Global Communications Inc.

VelaTel Global Communications Inc.

September 20, 2011 08:30 ET

VelaTel Global Communications Signs Over 7,000 Potential Customers in First Days of GO MOVIL Launch; Expects to Begin Generating Revenues in October

SAN DIEGO, CA--(Marketwire - Sep 20, 2011) - U.S.-based VelaTel Global Communications, Inc. (OTCQB: VELA) (PINKSHEETS: VELA), a holding company for Wi-MAX and LTE (4G) network operators and wireless products and services, through its subsidiary Perusat, announced today that over 7,000 Peruvians have signed up to GO MOVIL's "interested customer list" to-date. The list includes the customers' contact information and the specific GO MOVIL service plans and products they wish to buy. Product samples have been tested and commercial units are due for delivery in the next 15 days. VelaTel expects to begin fulfilling these orders and turning them into subscriber revenues at this time.

"We are confident that the vast majority of our 'interested customers' will become GO MOVIL subscribers. GO MOVIL is signing on about 150 people per day between our five recently opened stores. At this pace, VelaTel expects to well-exceed its previously announced expectations to sign up 16,000 customers for the first full year of operations," said VelaTel CEO George Alvarez.

Alvarez continued, "We look forward to filling our anticipated backlog of orders upon receiving our product shipment in the next 15 days. Assuming a monthly average revenue per subscriber of US$20, revenues from GO MOVIL could easily reach many millions of dollars in our first year of operations. Additional store openings could continue to accelerate our potential subscriber and revenue numbers in 2012."

Ryan Alvarez, VelaTel's Head of Marketing, said, "We have been working day and night to ensure the delivery of the most reliable, scalable and high-quality 4G network in Peru. It has been very rewarding to have people literally waiting in line -- some tens at a time -- to sign-up to receive a particular product or monthly service plan. Our store traffic has been primarily through word-of-mouth advertising. We may consider implementing a larger-scale customer outreach program in the near future to further boost sales at each store."

For more information on GO MOVIL, please visit www.velatel.com, and select "Projects + Brands," and then "GO MOVIL." Spanish speaking customers may also visit www.gomovil.com.pe and then select "Dispositivos" (which is Spanish for "Devices").

About VelaTel Global Communications, Inc.
VelaTel Global Communications, Inc. ("VelaTel") acquires spectrum assets through acquisition or joint ventures. VelaTel 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 that 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. To learn more about VelaTel, visit www.velatel.com.

This press release contains 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

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