News - Agreement with China Telecom
NetMoves Extends Market Leadership in China Through Agreement with China Telecom; Internet Fax Technology and Services Provided Throughout China's Key Free Trade Zone
EDISON, N.J.--(BUSINESS WIRE)--May 20, 1999--NetMoves (NASDAQ NM: FAXX), the global leader in Internet Document Delivery, announced an agreement today with China Telecom to distribute NetMoves' Internet Fax Services throughout China's Guangdong province, a leading commercial region.
Because of its economic and trade relationships with more than 170 countries, Guangdong Province is widely regarded as China's gateway to the outside world and telecommunications hub.
Under the agreement, NetMoves will install an Internet Fax node and provide Internet Fax services to customers of YiTong Telecom Service Enterprise Limited, China Telecom's subsidiary based in the city of Shenzhen - a free-trade zone.
"We chose NetMoves as our partner because, like us, they have a reputation for high quality service and customer care, outstanding market experience and knowledge, and an existing customer base and robust distribution network," stated Mr. Ming Yang, General Manager of YiTong. "NetMoves is the only Internet Fax service provider in China of that caliber."
Prior to this agreement, NetMoves had already attained a market leading position in China's fax services market, with approximately 10 million minutes of fax traffic annually, growing at 200% CAGR. The company also has continued to build upon its already substantial network of Chinese distributors and hundreds of sub-agents that resell NetMoves services in China, including major partners such as MOFTEC, (the Ministry of Foreign Trade and Economic Corporation) and Liaoning MEC Group Co. Ltd.
Over the last year, NetMoves introduced its Internet Fax software in simplified and traditional Chinese versions, and invested heavily to expand its IP fax and messaging network with six nodes in greater China -- bringing the total in Asia to 13.
According to IDC, (Internet Fax Market Review and Forecast, 1997-2002) the Asia/Pacific Rim will lead the global Internet Fax market with its 169% CAGR, boosting regional volume up from approximately 350 million in 1999 to an estimated 4.3 billion minutes in 2002.
"It will be nearly impossible to be the global leader in fax services without being a top-tier player in China," explained Peter Davidson, Manager of Facsimile Research at IDC. "In the worldwide Internet Fax arena, China is clearly the star and the sweet spot. We're heading to a not-too-distant point where China will supplant Japan as the new leader in overall Asian fax traffic. It's already the leading national market for Internet Fax and is forecast for a blistering 239% growth through 2002."
"The Chinese are eagerly reaping the benefits of faxing over the Internet," stated Alfred Hong, president of Hong Yun, which provides NetMoves Internet Fax services throughout China. "In a country where fax has become the lifeline of doing business, benefits like convenience, ease-of-use, substantial cost-savings, and local-language support have made Internet Fax very easy to sell. We're pleased that NetMoves made this service available to our customers so quickly."
"As the first to identify the mass opportunity that China represents, we signed agreements with the best partners, deployed vast facilities, and invested enormous time building the personal relationships that are vital to success in China," stated George Frylinck, NetMoves' Vice President of International Business Development. "We are confident of our strong position in China and advantage over our competitors - because of the long lead time, great effort, and persistence that's required to succeed."
Davidson notes that China installs new phone lines at a pace equivalent to installing an entire Baby Bell every year -- with no end in sight. Fax machine sales are predicted to explode from about 100,000 units in 1996, to approximately 10 million units or more in 2002. China is quickly becoming the world's largest national base of installed fax machines.
Because fax machines can connect directly to the NetMoves Internet Network, this installed base, coupled with NetMoves' Suite of Computer Faxing Services and extensive distribution network, represents a significant growth opportunity for NetMoves.
YiTong Telecom Service, located in the city of Shenzhen, is a subsidiary of China Telecom. Established in 1992, and is centrally located in an area that's home to 200,000+ enterprises; 30% of them foreign countries. Shenzhen is part of the Guangdong Province, which has emerged as one of the most strategic areas in south China. It serves as a gateway to one of China's key markets -- the golden triangle connecting Hong Kong, Shanghai and Guangdong.
NetMoves Corporation, formerly FaxSav, specializes in market-leading email and Internet Fax-based solutions to deliver business-critical documents at net speed. Recently acknowledged by IDC as the global leader in Internet Fax message volume and revenue, the company serves 114,000 customers across 150 countries through a continuum of Internet Document Delivery solutions including: email-to-fax, email and fax broadcast, Ecommerce, and enterprise-wide fax solutions for Microsoft Exchange, SAP and other environments. For more NetMoves information, call 732/906-2000, or visit the company's new website netmoves.com.
Certain statements contained in this press release may be deemed
forward-looking statement by NetMoves.... |
