VelaTel closes China Motion acquisition

VelaTel Global Communications has completed the acquisition of a 100% equity interest in China Motion Telecom (HK), a mobile virtual network operator (MVNO) with more than 100,000 customers in Hong Kong, in a deal that was originally announced last November. The total purchase price for the transaction is USD6.4 million, with USD1.6 million paid in cash and the remainder in the form of a promissory note payable within six months. China Motion partners with mobile carriers in Greater China to provide wireless network services to retail customers using its own billing support systems, customer service and sales personnel. VelaTel intends to upgrade China Motion’s network operations centre from 2G to 4G technology within the next three to six months, which the company says will result in a 25%-50% increase in revenues by having the ability to offer customers enhanced data packages.