LGOV moves forward in mainland China:
With regard to large municipal or national infrastructure systems of any kind, there is a fairly standard procedure that is followed once the people/government have identified a need they wish to address or solve.
Usually an extensive study is undertaken to attempt to identify and quantify existing facilities, identify and quantify areas not yet being served, and to project growth several years into the future of both population and expansion of business and industry. Such studies would generally include an analysis of the state of depreciation of existing systems, and the ability to upgrade - or the need to replace - those systems.
This activity can be both time consuming, and occasionally boring-to-tears, until you begin collating and assessing the data; and see the results. Feasibility studies may also be included, but they are more common to commercial ventures than national efforts.
After the study is completed, reviewed and approved, the next step is to develop a MASTER PLAN which identifies the most practical and cost efficient ways to proceed. Budgeting may be a part of the Master Plan, or may be contained in the Operational Plans in the form of estimates.
The important thing to consider is that - those who participate in the studies and Master Planning - have "..all of the information about every detail of the project at their fingertips..."! The importance of this position would equate to being "a mouse under the bookcase in Microsoft's Board Room" when management was discussing upcoming stock splits and next years strategy..!!
Let me direct your attention to the following statement in the news release from last December, "....Currently, Largo Vista's telecommunications engineer has designed a preliminary master plan, linking 52 strategic locations throughout domestic China.....".
***************************************
Currently, China has 62 million phones installed in a nation of 1.3 billion people, or one phone for every 21 people. Before China can become the world's largest telecom market, it must get through a lengthy, piecemeal process os deregulation that began in 1994. The Ministry of Post and Telecommunications has has been forced to allow limited competition into a market it monopolized for decades. In 1994, Beijing ended its ban on foreign ownership of telecommunications networks. The government still requires that only Chinese interests operate them. China's demand for telephone service far outstrips its ability to finance and operate networks on its own.
In 1993, LGOV's management flew to Shenyang, Liaonong Province (population 45 million) and helped negotiate a 7 earth station project with a pager network that to over 2,000 users in 90 days. Today, the Company's Joint Venture partners own 64% of the network. The relationship has grown over the years to a high level of trust. Recently LGOV's Joint Venture partners presented a proposal to the government that was well received. The results were LGOV being asked to present a preliminary Master Plan for review of the project, the second step to entering an agreement.
This development has been accomplished by reopening important lines of cooperative communications with a major U.S. government telecommunications entity. Currently, Largo Vista's telecommunications engineer has designed a preliminary master plan, linking 52 strategic locations throughout domestic China. In April, 1997, a scheduled meeting with U.S. telecommunications engineers will review the existing master plan and revise any weaknesses. The results of these meetings will be presented formally to the Chinese government for approval later this summer.
***************************************
The impact to LGOV, to be positioned as the DEVELOPER OF THE MASTER PLAN, cannot be stressed highly enough..!
It means that all the major players (AT&T, Lucent, Western Electric, etc., etc.,) have to come to LGOV'S engineering studies and Master Plan to get their information. It would be highly unusual if the proposals and bids to accomplish this work did not pass back through LGOV's engineer for review and approval prior to submittal to and acceptance by the Chinese government.
The US government required the break-up of the Bell monopoly some years back; because it got "TOO HUGE". The population of the United States is currently: 271,923,613. The population of China is projected at 1,300,000,000 (..that's 1.3BILLION..) as of 2000.
China's ultimate needs for telephony/telecommunications [AND EVERY OTHER LGOV ASSOCIATED PRODUCT AND SERVICE] are, therefor, "..4.78 TIMES GREATER.." than would be needed here in the USA - where we are sprouting satellite, microwave, cell phone and pager antennas like mushrooms.
One would think that today's share price of $0.10+/- was a bit of a bargain, when major news regarding "results" (not plans or letters of intent) is expected in a matter of days........
|
