Axesstel Receives Fixed Wireless Terminal Supply Order From BellSouth.
SAN DIEGO--(BUSINESS WIRE)--April 12, 2004
BellSouth Carriers in Ten Latin American Nations to
Purchase Axesstel Fixed Wireless Devices for Resale to End-Users
Axesstel, Inc. (OTCBB:AXES), a leader in developing, manufacturing and marketing high-quality, CDMA-based fixed wireless local loop (WLL), hybrid terminals and engineering services to operators worldwide, today announced an agreement with BellSouth to supply ten of its carriers in Latin America with custom-configured models of Axesstel's CDMA2000 1x advanced fixed wireless desktop phone terminals. Specific financial terms were not disclosed.
The telephones specified in the supply agreement, which are customized to cost-effectively provide basic wireless telephone access and text messaging capabilities, will be marketed by ten Latin American BellSouth affiliates to their residential and business customers. The companies participating in the agreement are:
Argentina -- Compania de Radiocomunicaciones Moviles S.A., which operates under the commercial name Movicom BellSouth Chile -- BellSouth Chile, S.A. Colombia -- BellSouth Colombia, S.A. Ecuador -- Otecel, S.A., which operates as BellSouth Guatemala -- BellSouth Guatemala y Cia, S.C.A. Nicaragua -- Telefonia Celular de Nicaragua S.A., which operates as BellSouth Panama -- BSC de Panama S.A., which operates as BellSouth Peru -- BellSouth Peru, S.A. Uruguay -- Abiatar, S.A., which operates as Movicom BellSouth Venezuela -- Telcel, C.A.
The nations served by the participating BellSouth companies have an aggregate population of approximately 184 million residents, only about 13.1% of who are estimated to have access to conventional telephone service. Approximately 5.2% are cellular phone subscribers. (Figures cited date from 1997-2000 and are drawn from the CIA World Fact Book).
The expense and logistical difficulties inherent in extending a conventional copper-wire "land-line" telecommunications grid throughout Latin America can cause delays of many months for qualified customers to gain access to a conventional phone system. Axesstel is pioneering fixed wireless technology as a cost-effective alternative to the prohibitively expensive build-out of the regional wire telecommunications network that would be required to provide developing nations with a connectivity infrastructure on par with highly developed nations in North America, Europe and industrialized parts of Asia such as Japan.
"It is gratifying to see this validation of our basic growth strategy," said Mike Kwon, Chairman of Axesstel. "We have believed for a long time that the best, fastest and most cost-effective way to provide high-quality telephony to 'unwired' markets worldwide is to engineer reliable, high-quality wireless local loop terminals, and to market them by working with market leaders such as BellSouth. We are pleased with our sales wins so far this year, and continue to build a robust sales pipeline."
About Axesstel, Inc.
Axesstel, Inc., a Nevada Corporation, (OTCBB:AXES) is powering the next generation of wireless, fixed and hybrid mobile devices based on CDMA, CDMA2000, 802.11, and emerging 3G and 4G broadband IP technologies. The Company is pursuing technology and applications that will enable the development and delivery of carrier-class subscriber-based solutions, including fixed terminals, handsets and wireless payphones. To date, Axesstel's Qualcomm-licensed products can be found in more than 15 countries worldwide. The company is headquartered in San Diego, California with a research and development center in Seoul, Korea. For more information, visit the company's Web site at www.axesstel.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the statements set forth above include forward-looking statements that involve risk and uncertainties. The Company wishes to caution readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include but are not limited to the risk factors noted in the Company's filings with the Securities & Exchange Commission, such as the rapidly changing nature of technology, evolving industry standards and frequent introductions of new products and enhancements by competitors; the competitive nature of the markets for Axesstel's products; Axesstel's ability to gain market acceptance for its products; the Company's ability to attract and retain skilled personnel; and the Company's reliance on third-party suppliers.