ChinaTel Group Signs Strategic Framework Agreement with Runcom Technologies

ChinaTel Group has signed a strategic framework agreement with Runcom (News - Alert) Technologies. Runcom is a pioneer of Orthogonal Frequency Division Multiple Access (OFDMA) technology - an advanced development of OFDM.

 

The Israel-based company claims that its multi-carrier OFDMA technology offers better performance over traditional wireless Single Carrier solutions such as Frequency Hopping Multiple Access (FHMA) and Code Division Multiple Access (CDMA).

 

As per the agreement Runcom would now be the main WiMAX (News - Alert) equipment vendor for ChinaTel's worldwide deployment of WiMAX technology throughout the world, including its present operations in the People's Republic of China.

 

As part of the proposed strategic relationship, Runcom would also invest $100,000,000 in ChinaTel in exchange for a 28.6 percent interest in ChinaTel, calculated on a fully diluted basis.

 

“We are pleased with our recent strategic framework agreement with Runcom Technologies. Runcom is a leader in developing enhanced communications services for cellular phones and other mobile devices. The inclusion of the Runcom product line in our PRC deployment, we believe, greatly enhances our competitive position in the Chinese marketplace,”  said Colin Tay, president of ChinaTel, in a statement.

 

ChinaTel, through its controlled subsidiaries, provides telecommunications infrastructure engineering and construction services worldwide including the USA, South America and China.

 

ChinaTel’s subsidiaries have entered into a series of agreements to build and deploy a 3.5GHz wireless broadband system in up to 29 cities across the People’s Republic of China with and for CECT-Chinacomm Communications Co.,  a PRC company that holds a license to build the broadband WiMAX system.

 

Earlier in October, ChinaTel Group, Inc. had set up a wireless broadband applications center in Taipei, Taiwan.