GLOBAL TELEPHONE ANNOUNCES MAJOR STEP TO BECOMING
Dominant Player in China's Internet Market
SAN DIEGO, Calif., Sept. 28 /PRNewswire/ -- Global Telephone Communication Inc. (OTC Bulletin Board: GTCI) today announced a major step in becoming a dominant player in the growing Internet market in China.
According to Terry Wong, president, the company has entered into a joint venture with Shenzhen Newsnet Co., Ltd., a wholly owned subsidiary of China Telecom, China's largest telecommunications
company. GTCI entered into the joint venture through Regent Luck Holdings, Ltd. (RL), its wholly owned subsidiary.
Under the joint venture, Shenzhen Global Net Computer Information Company will operate in six major urban areas with a population of over 300 million residents. These areas are: Beijing, Shanghai, Ghangzhou, Chonquing, Shenzhen and Wuhon.
"In the first half of 1998, China's Internet market has shown explosive growth," said Wong. "According to statistics recently released by the China Network Information Center, registered Internet users reached
1.175 million by the end of June, 1998. This is almost double the number reported at the end of 1997."
Wong added that Internet Telephony Protocol (IP) is experiencing the most spectacular growth. IP involves use of the Internet and corporate intranets to carry traffic rather than the more expensive International Direct Dial. "Savings can approach 50 to 70 percent," said Wong. "IP traffic is expected to reach $10 billion by 2001 and account for 25 percent of international long distance calls. The gateway equipment to carry such calls is estimated to grow from $1.8 million in 1995 to $6.3
billion in 2002."
GTCI through its wholly owned subsidiary Regent Luck Holdings, will operate under an exclusive
agency/licensing agreement with Newsnet (a wholly owned subsidiary of China Telecom) to provide basic and advanced Internet services in China. The business scope also includes IT systems integration,
development and reselling of IT products.
|
