Concept progress with Internet data centre in Beijing
Concept Wireless Inc CEU
Shares issued 7,663,964 Jul 17 close $1.28
Tue 18 Jul 2000 News Release
Mr. William Jung reports
Michael Ginn, vice-president of technical operations, has concluded a
number of successful meetings in both Beijing and Hong Kong with senior
representatives of Sun Microsystems, Inc., and the company's Chinese
partner to build an Internet data centre (IDC) in Beijing. The meetings
included an in-depth presentation of the IDC's architecture and a
discussion of the capital and expertise that Concept and Sun will be
providing to proceed with the project development plan for the IDC model
that is proposed for construction.
Management has also finalized an arrangement for the use of facilities and
support staff in both Beijing and Hong Kong. The office and staff to be
stationed in China will work on a full-time basis with the company's
Chinese partner and Sun to ensure the timely completion of the IDC project
development plan. Based on the preceding progress, the company has
initiated discussions with Sun regarding a contract for the construction of
the IDC in Beijing. In addition, the co-operation plan, which will form the
basis of the joint venture agreement that the Chinese partner has requested
management to prepare is nearing completion and will be forwarded shortly
to China for its review. Management expects to finalize the contract with
Sun and conclude the co-operation plan with the Chinese partner on the next
trip back to China and Hong Kong.
Internet facilities and support services will be in great demand due to the
anticipated explosive growth in China for Internet and related e-commerce
activities. The Internet growth in China has doubled every six months
during the past year and a half. According to a recent survey published by
an independent research firm, Interactive Audience Measurement Asia, there
are currently 12.3 million Internet users in China and it is expected to
become the second largest Internet user next to the United States within
four years.
The company's current activity in China also includes a paging joint
venture (Contour) that operates paging systems in 13 cities in Shandong
province and is the second largest paging network in the province with
approximately 400,000 subscribers. Results of operations for Contour for
the six months ended June 30, 2000, are expected to be made available in
the next 60 to 90 days.
Contour recently reached an agreement to form an alliance with another
Beijing-based company to be an Internet service provider and to offer
two-way wireless messaging and long-distance calling by way of the
Internet. This new alliance and the Jitong IDC project will enable the
company to extend its Chinese telecommunications and Internet operations
significantly in China. |
