VelaTel’s vision for its already cash flow positive ($1-2 million forecast in 2013) Hong Kong based subsidiary China Motion is to become the 9 SIM chips-in-one super-duper “world phone” for mainland Chinese (PRC) and Hong Kong business and consumer travelers.

This world phone vision is proprietary technology and UNIQUE to China Motion (CM): instead of buying and carrying 9 different SIM cards to avoid nasty roaming charges for both voice and data, CM customers today have only ONE SIM that gives them local non-roaming voice/data service in China/Hong Kong and Taiwan.

Now let’s add the gambling mecca of the East, Macau, to the one-SIM one world service!

Macau USED to be called “The Vegas of the East”, but with their casinos cashing in $38 Billion dollars last year (25% MORE than Las Vegas) it is now the gambling center of the world. Macau has over 25 Million visitors from China, Hong Kong and Taiwan…so it was only natural that China Motion would extend coverage to the region. When traveling between China, Hong Kong, Taiwan, and Macau, China Mobile customers avoid expensive international roaming charges making China Motion’s single GSM SIM card technology very appealing to the always cost conscious Asian masses.

This is great news for China Motion’s current 100,000+ subscribers, but more importantly, this opens up the doors for more subscribers that frequent Macau…not only for the tourism, but for the government as well since Macau is one of the two special administrative regions for China (the other being Hong Kong). “We are pleased to be able to respond to our current customers’ needs by extending our unique service to Macau,” says Peter Hung CEO of CM Mobile.

VelaTel purchased CMMobile on March 1, 2013, as part of its global expansion. "CMMobile's unique and proven multi-number cell phone service fits perfectly into our global telecom strategy. We believe this type of service has great possibilities, introducing into Macau is just the beginning as we expand this service worldwide," said George Alvarez CEO of VelaTel.

The big picture?  One phone/ONE SIM Chip/9 Asian and North American SIM service without roaming charges via the China Motion MVNO (mobile virtual network). With over 120,000 MVNO customers now CM is growing, cash flow positive and in the midst of an upgrade to 4G LTE service—for which they will upgrade tens of thousands of their customers.

VELA CEO George Alvarez and President Colin Tay are working on new MVNO agreements with Singapore/Malaysia/Korea/Thailand/Philippines as well as US and Mexico deals. They are the ONLY MVNO that works in China now (they buy wholesale minutes from China Mobile and run on its network).

CAN the CM MVNO network get to one million subscribers? With over 2 billion subscribers in their fully expanded network, and the ONE proprietary technology that supports ONE SIM chip for eventually ALL the Asian world (and North America too) the CM opportunity is worth a LOT more than VELAs’ current $2M market cap.

CM cash flow ALONE in 2013 looks like $1.5-$2M –and with the upgrade to 4G in Hong Kong and then China next year…they will have the MOST price competitive “super phone” in the Asian world.

PS  trading 6-10 million shares a day looks to cleaned up a LOT of the outstanding shares…we will be adding to our position here.

Source: Globe Newswire

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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