Avic Group and Hebei Government to develop major telephone network in China's Hebei Province.NEW YORK--(BUSINESS WIRE)--April 16, 1996--AVIC Group International, Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :AVIC AVIC Aviation Industry Corporation (China) AVIC Area Veterinarian in Charge AVIC Army Visual Information Center AVIC Avi Codec ) and the PRC's Government of Hebei Province jointly announced today an agreement by signing a Memorandum of Understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. to develop and construct a 1.6 million subscriber fixed wire telephone network along with a 1,450 KM fiber optics fiber optics, transmission of digitized messages or information by light pulses along hair-thin glass fibers. Each fiber is surrounded by a cladding having a high index of refractance so that the light is internally reflected and travels the length of the fiber communications line. Construction is expected to be completed in approximately five years. Additional signatories to the memo are the Hebei United Telecommunications Equipment Company and Hebei Lian-Tong, the provincial level body of China UNICOM, one of only two authorized telecommunications operators in China. AVIC will provide project financing Project financing A form of asset-based financing in which a firm finances a discrete set of assets on a stand-alone basis. and access to the financial markets and will also receive a significant portion of the revenue stream in return. AVIC is currently negotiating with several major investment banking firms to act as financial advisors on this project, and is working with Hebei United to identify potential strategic partners for the construction and maintenance of the network. The agreement increases AVIC's involvement in developing Hebei's telecommunications infrastructure. Last month, AVIC Group joined Hebei United, NTT NTT Nippon Telegraph and Telephone Corporation NTT New Technology Telescope NTT National Technology Transfer, Inc NTT Name That Tune (TV game show) NTT National Tree Trust NTT Number Theoretic Transform International, Inc., and Itochu in a Sino-Foreign Joint Venture to finance and create a province-wide Global Service Mobile network. Joseph R. Wright, AVIC's chairman and chief executive officer, stated "This agreement is an important step in the expansion of AVIC's project base to include major wireline, cellular and paging networks in China. This fixed wire network, combined with the GSM network announced earlier, gives AVIC the opportunity to participate in the creation of an integrated telecommunications service in Hebei." In announcing the agreement, Vice Governor Guo of Hebei stated, "Promoting the growth of industry in Hebei Province is our primary objective. Telecommunications infrastructure is the fundamental component of a thriving economy. We are excited about the opportunities this joint effort offers the province of Hebei." The wireline and fiber-optic network will provide both local and long-distance service in Hebei Province, which has a population of approximately 63 million people and is currently one of China's fastest growing telecommunications markets. In 1995, the total value of telecommunications services provided in Hebei grew by an astonishing a·ston·ish tr.v. as·ton·ished, as·ton·ish·ing, as·ton·ish·es To fill with sudden wonder or amazement. See Synonyms at surprise. 51.5 percent. In 1995, 870,000 main lines were added in Hebei alone. Currently there is enormous pent-up demand in China for wireline services; waiting lists of over three months for phone installation are common. The Chinese Ministry of Posts and Telecommunications plans to double local switching capacity, and triple long distance circuits over the next four years. MPT MPT Maryland Public Television MPT Modern Portfolio Theory (investing) MPT Ministry of Posts and Telecommunications MPT Message-Passing Toolkit MPT Master of Physical Therapy MPT Mitochondrial Permeability Transition also predicts that wireline density in China will double by the year 2000. AVIC Group International, Inc. is a telecommunications company focused on developing wireless and wireline networks in China. CONTACT: AVIC Group International, Inc. Cheryl L. Bell, 212/319-9160 or KCSA KCSA Krannert Center Student Association KCSA Kentucky Crushed Stone Association (Frankfort, KY) KCSA Kyiv City State Administration KCSA Kalamazoo Christian School Association KCSA Kentucky-Canadian Studies Association Adam Friedman/Joseph Mansi, 212/682-6300, ext. 215/205 |
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