(NOTE: KNGC IS NO LONGER INVOLVED WITH GOLD OR GAS ACTIVITIES) Kalan Gold Corporation, originally formed as a gas exploration and gold mining company, acquired all the capital stock of Animated Electronic Industries (AEI) Sdn. Bhd., a Malaysian corporation, in April 1999. AEI produces interactive multimedia content for its customers who consist primarily of Malaysian corporations that operate their own Local Area Networks (LANs) or Wide Area Networks (WANs). Plans are also underway to market and deliver such multimedia content to residential consumers through a wireless broadband network (VISIONET). The Company is in the process of deploying VISIONET in the Central Region of West Malaysia. The current business plan is to devote its resources to the expansion of existing business and the proposed launch of VISIONET's test cell in the fourth quarter of 1999 to be followed by a full implementation of multiple cells in the first quarter of 2000 in the Central Region of West Malaysia.
A 60% owned subsidiary of AEI, Perwimas Telecommunications Sdn Bhd ("PTSB"), was granted an exclusive license in June 1997 from the Ministry of Energy Communications & Multimedia of Malaysia to establish and operate VISIONET's Internet Protocol (IP) based, terrestrial wireless broadband transmission network throughout Malaysia. The license permits the Company to offer the following services: (i) high speed Internet access at a minimum speed of 4Mbps, (ii) interactive distance learning (iii) live news coverage (iv) emergency field services, (v) remote video surveillance for security; and traffic management and control, (vi) on-site progress monitoring; and (vii) energy conservation and building management such as home automation and control.
In addition to the above-named applications, VISIONET provides support for the design and production of multimedia programs, data hosting, broadband Virtual Private Network interconnection, digital video multi-cast and transmission of bandwidth-sensitive multimedia applications and services throughout Malaysia.
At present, Perwimas is the only company in Malaysia to be granted a Wireless Video Communication Network license. Perwimas will hold four individual licenses for network facilities provider, network services provider, applications services provider, and content applications services provider. The Company has also obtained licenses for broadcast frequencies, radio dealer's license, and approval of their ISDN modem.
As the first, and currently exclusive, licensee to market wireless broadband service, the VISIONET system possesses a number of attributes that will enhance its competitiveness. These include:
--Low cost infrastructure alternative to satellite and fiber optic delivery systems.
--Accurate, high-speed transmission enabling data transfer with the accuracy of fiber optic systems.
--Mitigation of multipath phenomenon (i.e., double image, “ghosting”) through the use of FM and narrow beam antennas.
--High picture quality using LMDS (Local Multipoint Distribution of broadband telecommunication Services).
--High dependability of signal through elimination of cable between transmitter and subscriber.
--Compact antennas that can be mounted insider a subscriber's window.
--Efficient spectrum usage permitting “re-use” of the same spectrum, eliminating the need for adjacent and co-channel spacing as with VHF/UHF systems.
AEI has already secured contracts and agreements with a number of parties to provide: complimentary BRIDGE Station service; distribution of its multimedia conferencing and networking products; construction of a commercial complex with the right to operate its transmission tower from the roof; studio facilities and server space to a developer of multimedia programs; and, distance learning for a government client and educational institution.
Near term plans include: continuation of joint ventures and strategic alliances with domestic and foreign institutions for delivery of distance learning programs; implementation of the digital LMDS network; establishment of distribution networks and sales/service centers; and, collaboration with multimedia content producers and broadcasting companies to aggregate, host and distribute content globally.
Disclaimer: The author currently holds a long position in KNGC. All shares were purchased on the open market during the period November 1998 through November 1999. The author has not received financial remuneration from either the Company or a third party. |
