Telecom Lead Europe: VelaTel Global Communications has
finalized its telecom equipment financing deals with ZTE.
The agreement is to increase its equipment and software
order to expand wireless networks in Montenegro and Croatia.
The announcement follows VelaTel’s closing of its
acquisition of Herlong Investments and its operating subsidiaries, Novi-Net and
Montenegro Connect, which allows VelaTel to report the financial results of
these subsidiaries on its consolidated financial statements.
“VelaTel will raise the bar again for mobile
broadband services by providing networks with greater speeds and capacity than
any other network in those regions,” said George Alvarez, VelaTel’s
Chairman and CEO.
The signed contracts with ZTE include improved pricing
compared to an earlier preliminary order that covered only a portion of the
total equipment required, based on now completed engineering. The revised
orders will now deliver all the necessary equipment and software for Phase 1
deployments of both networks.
“We are able to leverage our exclusive financing
packages in order to dramatically minimize our costs, while having access to
the industry’s most compelling and advanced equipment. Though the price
negotiations for the final engineered order took longer than expected, the cost
savings more than justified the extra time,” said Colin Tay, president of
The 1,800 subscriber existing network base in Croatia
covers Cakovec city and its surrounding area, and will not be expanded during
Phase 1 of VelaTel’s deployment. Instead, VelaTel will target densely populated
areas, including the capital city of Zagreb, where potential business and
government customers are concentrated.
Simultaneously, VelaTel will be deploying a wireless
broadband network in Montenegro, which is a greenfield operation. Phase 1 will
focus on urban areas, including the capital city of Podgorica, and the
commercial and government customers concentrated in those urban areas.
“With these critical contracts now in place, we can
focus on the expansion of our network, which is needed to satisfy the enormous
appetites of our wireless subscribers,” said Novi-Net’s Founder and CEO