China Wi-Max Communications (CHWM.OB)
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China Wi-Max Communications (CHWM.OB)

Stock symbol: CHWM.OB……….….….………….…..……….………Float (11/30/09):1.5mm
Stock price 3/16/10: $.25……..……….…….………..…….Common shares 9/30/09: 14.4mm
52 week Range: $0.35 to $1.01….….…………………Equity market capitalization: $3.6mm

Recent News…..Stock Price…..Chart…..SEC Filings

Audio Interview

CEO INTERVIEW listen now

Steven Berman, China Wi-Max CEO & President said in the interview "China Wi-Max is positioned to take advantage of the dynamically growing broadband internet connectivity market in China, starting in Beijing and rolling out to a population segment of 100 million people in 10 target cities."

HIGHLIGHTS

Unique opportunity to participate in China’s growth of broadband business services

CHWM has "most favored nation" broadband access to over 1400 buildings in Beijing read more

ONLY FOREIGN COMPANY

Management believes it is the only foreign company that has been able to
(1) Own it’s own fiber
(2) Obtain all the proper business licenses
(3) Obtain frequency licenses, by way of a 50/50 joint venture

BUSINESS

Focused on China’s rapidly expanding business market, CHWM is an early stage wireless telecommunications broadband provider

Integrates optical fiber & wireless access

Through use of licensed wireless spectrums, CHWM can reach customers that are up to ten miles away from its fiber network, providing access to most customers in its large target markets

Rollout starts in Beijing in March 2010

RECENT DEVELOPMENTS

New research report from Venture Research, March 14 read more

Projects Recurring Revenue Growth, Feb 9, 2010 read more

Moves Forward in Shanghai With Agreement to Purchase Fiber Network, Jan 14, 2010 read more

Announces Major Access to Beijing Buildings for Broadband Service, Nov 30, 2009 read more

Announces the Turning Up of Its Fiber Ring in Beijing, Nov 30, 2009 read more

ROLLOUT PLAN

Beijing is China's second largest city after Shanghai, with more than 17 million people in Beijing's area of jurisdiction.

Shanghai is the largest city in China, and one of the largest metropolitan areas in the world, with over 20 million people

Hangzhou has a resident population of 3.93 million as of 2003

Tianjin is the sixth largest city of the People's Republic of China in terms of urban population

The next six targeted rollouts include Shenzhen, Dalian, Qingdao, Guangzhou, Xi’an, and Chongqing

The 10 initial targeted rollouts represent eight percent of the population of China, or 100 million people.

WIRELESS BROADBAND MARKET GROWTH IN CHINA

China’s telecom market is growing rapidly for several reasons

Demand: there are now more internet users and cellphone users in China than in any other country.

Political: China opened up its communications market after joining the World Trade Organization. The CHWM intends to build fiber and wireless networks throughout China, adding networks in the business districts of one major city at a time. The Beijing network is scheduled for commercial launch in March, 2010.

OPTICAL FIBER RINGS

Beijing: 47 miles around 4th Ring Rd.

Hanzhou: 17 miles

Shanghai: agreement to purchase 90 miles, two rings and a connector spur

WIRELESS BROADBAND BUSINESS SOLUTIONS

Business customers in China increasingly demand high-quality, high-capacity telecom service.

True carrier class network features provided by CHWM

CHWM customers in office buildings and towers will receive reliability, redundancy, scalability and other features expected of a true carrier class network.

Value added services provided by CHWM

Beyond pure bandwidth, CHWM will offer higher-value services such as voice over Internet Protocol (VoIP), virtual private networks (VPN), video conferencing, Internet Protocol TV, software as a service, data backup and other services.

CHWM GROWTH PLAN BASED ON

Fiber optic metropolitan networks

For example, CHWM’s network in Beijing consists of a packet-based fiber optic metropolitan network along the Fourth Ring Road in the city. This carrier Ethernet network provides 10 Gbps line rate bandwidth and can evolve to 100 Gbps using single wave technology. A further exponential increase in bandwidth is possible by using Dense Wave Division Multiplexing (DWDM).

Wireless spectrums

Through local Chinese partners, CHWM has access to licensed 5.8 GHz wireless spectrum which will be used to provide last mile point to point to multipoint connections between buildings. CHWM intends to use this to extend the reach of its fiber network (10 miles or more) by connecting buildings beyond the network to those on the fiber ring through roof-top wireless antennas.

Using integrated optical fiber and wireless networks greatly increases the potential number of customers CHWM can service.

The network

The network will support a range of options to customers from emulated technologies for legacy customer equipment, such as ATM, to current flat IP protocols.

ROLLOUT PLAN

Initial four cities: Beijing, Hangzhou, Shanghai and Tianjin

Next six cities: Shenzhen, Dalian, Qingdao, Guangzhou, Xi’an, and Chongqing

Initial ten city targets include 100mm people.

POTENTIAL MARKET CAPITALIZATION

With a current market capitalization of $6.2 million CHWM appears undervalued, relative to the assets, licenses and agreements in place.

CHWM appears to be ready to implement a success model in Beijing. See ‘recent developments’ above.

Then the success model is expected to be transported to the next three targeted rollout cities and then the next six, to cover a potential marketplace of 100 million people.

Address: USA: 1905 Sherman Street, Suite 335, Denver, CO, USA 80203
China: Hanwei Plaza - Rm 1709, No. 7 Guanghua Rd, Chaoyang District, Beijing 100020
Telephone: USA: (303) 993-8028…China: (8610) 65-61-5395
CEO: Steven T. Berman
Web Site:
http://www.chinawi-max.com

State or other jurisdiction of incorporation or organization: NV
Transfer Agent: Corporate Stock Transfer, Denver, CO
Investor contact: Strategic Development Partners, Phil Allen, 303-875-1044,
phillipallen@att.net

BOARD OF DIRECTORS

Dr. Allan Rabinoff, Chairman
Dr. Rabinoff's 25 years of business experience in China and the Far East have provided him with extensive knowledge in doing business in China including important international commercial/personal relationships. Throughout his business career, Dr. Allan Rabinoff has focused on maximizing opportunities in a rapidly changing business environment. Dr. Rabinoff has international experience in the areas of project identification, contract negotiation, cross-cultural team building, marketing, sales, Merger & Acquisition strategy, and business development. He has a Ph.D. from the University of Maryland and received his Masters and undergraduate degree from the University of Wisconsin.

Dr. Rabinoff has been involved in the area of telecommunications for the past fifteen years. He is a principle in Intelligent Network Communications, LLC and IP2IP, LLC. Both companies operate in the international telephone transport arena.

Steven T. Berman, President & CEO

Mr. Berman is a senior telecommunications executive with over 20 years of business and legal experience. In addition, he has served as corporate general counsel, operations manager, a regulatory and compliance strategist and as a contract negotiator. His background includes managing staff and operations in telecom companies plus financial and manufacturing operations.

His extensive telecommunications background comes from serving ten years at the National Rural Telecommunications Cooperative (NRTC) where in 1994 he helped launch DIRECTV, the nation's first high powered Satellite Dish Service and WildBlue Broadband Satellite, one of the nation's first two-way satellite-delivered broadband internet services. Mr. Berman served as Senior Vice President, Business Affairs and General Counsel at the NRTC and was also Corporate Secretary-Treasurer. He was the NRTC’s principal liaison with strategic partners, financiers and its largest customers. Mr. Berman managed business relations and legal components of manufacturing, transport, storage, insurance and delivery of various telecommunication products and services – including Direct Broadcast Satellite, broadband, high-speed Internet access and wireless operations, warranty programs, and call center support.

Prior to joining China Wi-Max Communications he served as President and CEO of First Capital Surety and Trust Company (formerly Morgan Chase Trust Company) where he used his business, management, financial and legal skills to successfully turn around the $200+ million regulated bank and trust company. The company was re-established as a leader in its field.

Mr. Berman is an attorney admitted to the Wisconsin, Pennsylvania and District of Columbia bars. He is also a member of the American Bar Association. He received his Juris Doctorate from the University of Wisconsin Law School, Madison, Wisconsin in 1987. Prior to his corporate career he was a practicing attorney based in Washington, D.C., involved with complex civil litigation.

Buck Krieger

Buck Krieger has an extensive financial background, which began at Clayton Brokerage Company, which later became the largest Brokerage house in the country dealing exclusively in Commodities. During his time at Clayton Brokerage he was an E.V.P. and National Sales Manager for 10 years.

Mr. Krieger retired from Clayton after 25 years, and began a Theatrical Stage lighting company contracted with 5 major Rock n Roll bands, 6 Country groups and a number of National Company Industry trade shows. His career includes invaluable experience in that industry as he developed other businesses in pre-paid services, insurance, telecommunications, financial services, and venture capital.

Sharon Xiong, Ph.D.

Sharon Xiong currently leads and manages system verification of High Density SIP Trunk Gateway at Avaya Communication Inc. Prior to working for Avaya; Sharon worked at Lucent Technologies on 10G optical router (Bandwidth Manager) development and Rhythm Netconnections, Inc., for DSL management software development. She has more than ten years of experience in telecommunication software product development and software testing. She was involved in the development of products including user interface, web services, application interface, call processing, data management applications, reporting application, network optical switch, etc.

Sharon is one of the founders and a former board member of the Chinese American Association (CAA) of Rocky Mountain Region. In addition to CAA, she participated in the founding of the Great Wall Chinese Academy (GWCA) and serves as a board member and current principal. She manages a GWAC Sunday school operation of about 200 students, 10 administrators and 24 teachers.

Sharon is the President of XBC Consulting Firm which offers business consulting services to people who intend to expand their business in China’s emerging market. She understands Chinese culture, has a broad Chinese network, many years hands-on experience in US corporate business operation, and corporate management skills.

She received her education in Computer Science from the University of Colorado, Denver and holds an MBA from the University of Colorado, Denver, a Ph.D. from the Medical School at the University of South Dakota, and an M.S and B.S. from Peking University, China.

BUSINESS ADVISORS

David Gao, Corporate Attorney-China

David Gao is a member of the Beijing King & Bond law firm where he specializes in providing legal services for multinational corporations. Based in Beijing, David will advise the company in a wide range of corporate, commercial, securities, finance and property rights related legal matters under Chinese laws. David’s business law experience includes mergers and acquisitions, contracts and legal documents for commercial activities, negotiating transactions, joint ventures and private and listed company acquisitions. He is fluent in written English and Chinese. David has an LLB from Hebei University and an LLM from China University of Political Science and Law. He has been admitted to the China National Bar Association and is fully licensed to practice law. While working for a large state-owned corporation, he received training in Western accounting practices.

James Edward Robinette, Business Advisor

Mr. Robinette has over 30 years of experience in sales management, marketing, strategic planning, supply chain management, project management and international business development in the wireless communications industry. He was a founding member of the Panasonic Wireless business.

Mr. Robinette has successfully developed sales channels with Tier 2 and Tier 3 cellular carriers and directed many strategy projects for Panasonic Communications and Motorola. He has strong relationships with all levels of management in both GSM & CDMA cellular providers. Ed has P&L experience and was responsible for a $100 million dollar annual budget. Mr. Robinette has also developed and implemented sales and training programs for AT&T.

Mr. Robinette has developed and implemented innovative sales and growth strategies for cellular carrier retail stores, kiosks, and indirect channel agents. This included the coordination of a team of 40 geographically dispersed individuals working to integrate retail sales strategies into Tier 1 carriers, smaller carriers, retailers and distributors.

Daniel Welytok, General Counsel

Daniel Welytok is a partner in the Wisconsin-based law firm of von Briesen & Roper, S.C., and acts as outside general counsel to the Company in the United States concerning general business matters. Mr. Welytok’s industry experience is concentrated in technology services, where he has helped management achieve practical results in capital structuring, financing, licensing and intellectual property protection, regulatory issues, acquisitions and divestments, Sarbanes Oxley compliance, employment and benefits matters, officer and director issues, and dispute resolution. He has represented a number of organizations before the Internal Revenue Service, the Department of Labor and other Federal and state regulatory authorities on audits, controversies and compliance issues.

Mr. Welytok assisted with the satellite broadcasting industry’s lobbying efforts pertaining to sales and use tax in connection with the direct-to-home satellite service provisions of the Telecommunications Act of 1996, and developed the organizational, contractual, and distribution structure for a nation-wide wireless communications network. Mr. Welytok received his Law Degree from the University of Wisconsin Law School and his Masters of Law in taxation from DePaul Law School. He is "AV" rated by Martindale Hubbell, the highest possible peer-to-peer rating among lawyers.

Eric Hager, Business Advisor

Mr. Hager is an Internet entrepreneur and senior telecom executive with over 25 years of proven experience in start-ups and large organizations. He possesses a rare combination of technical acumen, strategic vision, and financial skills. He has serial successes in technology driven ventures and strategic M & A transactions.

Formerly, Mr. Hager was an owner and operator of Expedient Holdings USA, where he architected Expedient’s fixed wireless, fiber, and copper based Ethernet transport services. Expedient won Supercomm’s 2005 Worldwide SuperQuest Award for Network Design and Services and Lightreading’s Leading Lights Award for Best Marketing campaign for Expedient’s "Ethernet Anywhere" service.

Prior, for Livingston Enterprises and Lucent Technologies, he led product strategy for: IP Service Switches, Media Gateways, and Metro Ethernet. For IP Services, he directed technical and financial due diligence for $1.5B of Lucent acquisitions. He led worldwide Service Provider Technical Marketing resulting in over $100M in contract awards throughout US, EMEA, and Asian markets. He developed the strategic relationship with Lucent Technologies subsequently leading to Lucent’s $600M acquisition of Livingston Enterprises. He was also awarded US and European Patents for Internet Call architectures in public networks.

Mr. Hager’s extensive international experience began as a student attending the Universidad de los Americas in Mexico and obtaining a bachelors degree in Philosophy from MERU in Seelisberg, Switzerland.

TECHNICAL ADVISORS

Dr. Iain Stewart, Vice President of Engineering - CTO

Dr. Stewart originally trained as a Physicist and Mathematician and has 28 years of experience in most aspects of system software development, telecommunications and radio transmission. He was awarded his Ph.D. in physics for developing a technique for measuring the conductivity of doped Germanium over a range of temperatures to 4.2K and developing the mathematical model necessary for the convergence of three theories of electrical conduction.

In the 80’s, he wrote operating systems, middleware and data-communication protocols for major international corporations including Bell Labs. In the early 90’s he was able to apply this expertise to research in data transport overinterference-impaired radio channels which was then used for the evaluation of early digital cellular systems. During the last 12 years he deployed a CDMA network in the USA - and then designed, engineered and deployed nation-wide LMDS networks in the Philippines, Switzerland, & Holland as well as a long-distance fiber network in Poland.

He was also involved in a $7.8B cable upgrade in Germany. Using a proprietary technology, Iain currently works with major US, European and Latin American mobile operators to reduce their cell-site backhaul requirements for GSM and UMTS as they migrate to apseudowire underlay. All networks depend for their profitability on their efficient use of bandwidth while providing the service differentiation necessary for a wide variety of high-value, real-time services such as VoIP and video conferencing.

Dr. Stewart’s mathematical background helps ensure the optimum use of resources while preserving service integrity. His experience in developing communications protocols at every level of the OSI protocol stack helps guarantee network integrity, while his practical experience with the deployment of RF systems helps safeguard transmission integrity.

Chris Watson, Chief Applications Engineer

Chris Watson has recently deployed three WiMax systems in Europe. His experience in WiMax is extensive, and he is highly sought after to work in the WiMax arena. His projects are reviewed below. Chris Watson operates a high-technology services company based in St. Louis, MO.

For the past 20 years, Watson has specialized in international voice and data switch developments and operations of switching with long distance networks on a world-wide basis. Over the last year, he has developed and installed numerous VOIP and wireless networks with telephone companies in US, Southeast Asia, and Central Europe which has positioned him as a leading provider of technical wireless services for wireless "WiFi" and "WiMax" applications. The most recent system release, developed and designed by his group is Qfone- SIP softphone device (computer telephone), similar to Skype with a carrier grade VoIP network deployment under pre/post paid operation infrastructure.

Another US development included the "Country Roads" wireless network supplying rural community wireless internet and VOIP services in the rural and urban communities, based on a new communications technology called "WiMax". WiMax is a wireless protocol, developed in conjunction with Intel Corporation at a cost of more than US $3 Billion, and by Motorola at billions more. Mr. Watson began engineering and deploying Wimax systems into commercial markets early in 2005.

Mr. Watson has completed the planning and deployment of an extensive integrated Carrier VoIP networkwith wireless infrastructure designed in 6 capital cities with an additional 24 smaller cities. The development allowed fast deployment for last mile interconnection with the ability to make available enhanced technology products with reduced cost in hardware, increase speed of product to customer and allowing the carrier to control its network and quality of service to the customer.

INVESTOR RELATION ADVISORS

Mel Marten, Investor Relations Advisor

A Chartered Financial Analyst, Mr. Marten brings in-depth telecom experience to China Wi-Max. Mr. Marten spent 11 years at Edward Jones as the firm’s Senior Telecom Analyst, covering the stocks of major U.S.and international telecom companies such as AT&T, Verizon and Vodafone. He analyzed and evaluated the competitive local exchange carrier sector after the opening of the U.S. telecom market to competition. The Wall Street Journal named Mel a "Best on the Street" analyst in telecommunications in 2002, and he has been widely featured on CNBC, CNN, Fox News, and Bloomberg. Mel has served on the boards of several firms and currently runs a company which matches individuals to financial advisors.

He has a dual degree in finance and accounting from the John M. Olin School of Business at Washington University in St. Louis, where he attended as a National Merit Scholar. Mel is a member of the St Louis CFA Society and Mensa.

Phillip Allen, Investor Relations Advisor

Phillip Allen is President and CEO of Strategic Development Partners, a capital consulting firm targeting start-up and development stage companies seeking funding, strategic development planning and marketing assistance. Mr. Allen has, for over two decades, provided leadership to start-up companies as a senior management, founder or consultant. Allen raised his first venture capital in 1985 as a founding Vice President of Capital Acceleration Corp, a financial services company that achieved $50 million in business its first year.

Mr. Allen has been instrumental in structuring, staffing and managing the startup and development stages of a number of cutting edge companies in telecommunications with emphasis in frame relay, ATM and IP switching, international direct terminations and enhanced services. Allen was involved at the senior management or consulting levels of a number of hi-tech companies that he facilitated taking public through reverse mergers.

Allen has personally facilitated the structuring and start-up planning for numerous clients throughout the United States. Allen made his first trip to the Peoples Republic of China in 2002 to evaluate an opportunity in Shenzhen with a major CLEC. Allen, through Strategic Development Partners, is responsible for the capital structure, seed/first stage funding and strategic planning of China Wi-Max Communications, and providing strategic advice and counsel to its founding officers, directors, consultants and advisors.

Mr. Allen has a BS and a BA in Business, Education and Philosophy from Central Michigan University (CMU), and MA in General Educational Administration from CMU in 1980 and has completed doctoral work in labor and industrial relations at Michigan State University.

 

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