Concept Industries Inc
CEU
Shares issued 7,103,604
2000-06-20 close $1.48
Wednesday Jun 21 2000
Mr. William Jung reports
In co-operation with the Beijing and Hong Kong divisions of Sun Microsystems,
Ltd. has completed a successful presentation of the proposed Internet data centre
project to Jitong Telecommunications Ltd.
The company has signed an initial agreement with the Beijing branch of Jitong to
establish a joint venture to develop and operate IDCs in the People's Republic of
China. Jitong is a major Internet service company that operates only one of two
commercial Internet backbone systems in China. China Telecom, China Unicom,
China Netcom and Jitong, the four national data carriers will spend $1-billion
(U.S.) this year in improving the country's Internet backbone infrastructure. China
Unicom, the state-owned No. 2 telecom operator, could raise as high as
$5.65-billion (U.S.) in its initial public offering which will surpass its main
competitor, China Telecom, that raised $4.2-billion (U.S.) in its 1997 IPO.
With the success of the presentation, the company will be establishing an office in
Beijing during the next 30 days to work closely with Sun and Jitong toward
finalizing the remaining details of the proposed IDC facility to be located in Beijing.
Currently, the Chinese government has opened only three cities, Beijing, Shanghai
and Guangzhou, for foreign investments in the Internet industry.
IDCs are large-scale Internet server-hosting facilities that offer complete
e-business solutions that include bandwidth, monitoring and support services. The
IDC presentation incorporates the installation of Sun equipment in a proprietary
facility designed to take advantage of the new high-speed fibre optic network that
Jitong is currently building in China. The design includes LAN architecture scaled
for high-speed performance with dedicated and redundant backbone networks
and an aggressive plan to meet customers' bandwidth requirements. The proposed
facility will be constructed with raised floors, HVAC temperature control systems
with separate cooling zones, seismically braced racks, smoke and fire suppression
systems, motion sensors, and a 24/7 video surveillance and security alarm
systems.
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 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 375,000 subscribers.
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 via the Internet (VoIP). This new
alliance and the Jitong IDC project will enable the company to extend its Chinese
telecommunications and Internet operations significantly in China.
For further information, visit the company's Web site at
www.concept-wireless.com or call (604) 325-8197 or toll-free at
1-877-791-8777. |
