ChinaTel Group, Inc. (“ChinaTel”) (OTCBB:CHTL) announced today that its Applications Center in Beijing has entered into a Memorandum of Understanding (MOU) with Redflex Traffic Systems Pty. Ltd. (Redflex), a global leader in the management of outsourced traffic infringement services, to deploy the high speed wireless broadband technology based traffic camera systems in many major cities in China (including Beijing, Shanghai, Guangzhou, Shenzhen and Nanjing) where the wireless broadband network will be installed. The MOU indicates that ChinaTel and Redflex will catch the market opportunity of high speed wireless broadband application on traffic management in China.
ChinaTel established the relationship with Redflex after starting the operation of its Applications Center in Beijing. Both parties recognize the importance of the market opportunity for Camera Enforcement Systems in China and are committed to developing and pursuing a mutually rewarding strategy for deployment and, where possible, utilizing ChinaTel’s high speed wireless broadband expertise.
The MOU outlines the directional strategic relationship between ChinaTel and Redflex as follows:
- ChinaTel and Redflex will cooperate to develop a mutual strategy for the sale of Redflex traffic systems products in China.
- With the assistance of Redflex, ChinaTel intends to sell and deploy the traffic camera systems to cities in China where the wireless broadband network will be deployed.
- Redflex intends to appoint ChinaTel as an authorized distributor in China, providing training and support to ChinaTel’s activities, which will include supply of demonstration systems to illustrate the high speed wireless broadband based traffic application systems capability in China.
The two companies will cooperate to create greater value for Chinese local governments through helping them build up an efficient traffic management system applied on wireless broadband platforms.
Benefits from the partnership of ChinaTel and Redflex
Under the MOU, ChinaTel and Redflex’s mutually beneficial partnership will fully leverage their respective strengths on global operation and local distribution, creating synergy, extending their customer base, and expanding potential sales revenue. ChinaTel will deploy the high speed wireless broadband based traffic systems with the support of Redflex, and in turn, Redflex can extend its business to China’s first tier cities through this partnership.
About ChinaTel Group, Inc.
ChinaTel, through its controlled subsidiaries, provides telecommunications infrastructure engineering and construction services worldwide including the USA, China, Argentina, Peru, and Chile. ChinaTel’s subsidiaries have entered into a series of agreements to build and deploy a 3.5GHz wireless broadband system in up to 29 cities across the People’s Republic of China with and for CECT-ChinaComm Communications Co., Ltd., a PRC company that holds a license to build the high speed wireless broadband system. For more information, please visit www.chinatelgroup.com.
About Redflex Traffic Systems Pty. Ltd.
Redflex Traffic Systems Pty. Ltd. is the industry leader in vehicle monitoring and enforcement systems and services for government, police, and traffic departments globally. Redflex has maintained its market leader position by providing customers worldwide with a significant degree of competency, knowledge and subject matter expertise to ensure enforcement program success. Redflex is the largest supplier and operator of photo enforcement solutions in the United States and has the largest installed base of outsourced digital photo enforcement systems in the world. For more information, please visit www.redflex.com.au.
Contacts:
ChinaTel Group Investor Relations
877-260-9170
investors@chinatelgroup.com