Background: This PDF from VelaTel (VELA) tells a lot of the background story for VelaTel’s 75% owned VN Tech subsidiary which is the leading provider in China for fuel cell (aka green energy) back-up power systems for 4G LTE base stations.

Telecomasia.net is reporting that China Mobile has requested bids from TD-LTE equipment vendors (in which China is ZTE and Huawei) for 207,000 base stations for their new 31 province 4G TD-LTE mobile broadband network.

As per Telcomasia.net “China Mobile, the world’s largest mobile operator by subscribers, has launched its long-expected equipment tender for its TD-LTE networks across the country. In a tender notice published last Friday, China Mobile said telecom equipment vendors who are interested and qualified can get bidding applications from the company between today and Saturday. They are required to submit those documents and attend a public bid opening on July 15, the company added.”

China Mobile plans to spend as much as 190.2 billion Yuan in capex this year, with more than half of this to be spent on its pre-commercial TD-LTE rollout. 190 billion Yuan is approximately $31 billion in US dollars.

Let’ connect some of the dots here:

#1 The China Ministry of Information and Telecommunications (MIIT) has requested that all 4G base stations have emergency back-up power that is NOT dependent on the sketchy Chinese power grid or uses lead batteries—too many black outs and brown outs to be dependent on the grid to charge batteries.

#2 China Mobile aims to build 207,000 NEW 4G base stations in 31 provinces around the country

 #3 China Mobile, facing increased competition from China Unicom and China Telecom in the 3G market, is pinning its hopes on 4G to win back high-end 3G customers from the two smaller rivals.

#4 China Mobile last year carried out large-scale TD-LTE trials in 15 cities in China with about 20,000 base stations that included many VN Tech hydrogen powered fuel cells in the tests in Hangzhou, Guangzhou and Shenzhen. It plans to expand commercial-ready TD-LTE networks to 100 cities and add more than 200,000 base stations this year

More to come…next we connect the REST of the dots!

VelaTel PDF

Disclosure: NBT Group, Inc. has in the past been compensated in the past for VELA shareholder awareness and sponsored equity research. NBT believes it will be retained in the near future for similar services to NBT. NBT affiliates own 4 million shares of VELA acquired in various transactions.

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Founder and Editor-in-Chief for NBTEquitiesResearch.com. Contributor and Anchor for the Fox News Channel and Fox Business Network 2000-2013. Chairman & CEO of NBT Group, Inc., a boutique private capital investment bank and investor relations organization.

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