We talked last week about the NEW VelaTel business structure and focus. To me, focus in business means having to say no to good ideas…and rethinking past moves in the context of the business strategy today versus history.

Today’s announcement that VELA has put their Peruvian 4G LTE network Go Movil up for sale is ANOTHER proof point that they have finally figured out that their B2C and B2B MVNO strategy is their future…and negative cash flow operations like Go Mobil is their past.

According to CEO Alvarez who confirmed this story last week to NBT, “we are in active negotiations with multiple parties” for a deal that would most likely be some cash and the assumption of ZTE debt. ZTE would have to approve the transaction for conveyance of their equipment financing…so we assume that the buyer would have to be an existing wireless carrier organization.

GREAT news for VELA shareholders…I believe based on my most recent interview with Alvarez this will NOT be the last disposition/spin-off of acquisitions that do NOT fit or leverage their newly acquired B2C and B2B MVNO capabilities.

We will have a full 40 minute interview with George Alvarez posted to the NBT site very shortly.

Source
TelecomPaper

Disclosure: NBT Group, Inc. has in the past been compensated 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 2.5 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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