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StockGuru Blog: China Voice (CHVC) Next-Generation Telephony

StockTalkJournal: Who is China Voice?

China Voice Holding Corp. (”CHVC”) is a U.S. public holding company headquartered in South Florida with a portfolio of next-generation communications products and services doing business in the People’s Republic of China and the United States. These services include voice over Internet protocol (VoIP) and other telecommunication services, office automation, wireless broadband, unified messaging, hosted groupware, mobile and other advanced voice and data services. Through its subsidiaries, CHVC provides these next generation communication services in profitable niche markets in China and worldwide. The company’s services are designed to produce recurring revenues from activation, monthly subscription and utilization fees. CHVC operates through its five United States and three Chinese subsidiary companies. The Company’s United States operations provide the infrastructure to support the marketing, sale and fulfillment of Asian communication products and services in the United States. In turn, its Chinese subsidiaries provide a vehicle to distribute and deploy United States telecommunication, wireless and next generation technology products within Asia. The United States subsidiaries include DTNet Technologies, CVC International, Phonehouse U.S.A., Inc., Dial-Tone Communications, and Power Prepaid Phone Card Distribution. The Chinese subsidiaries are Candidsoft, Beijing CVC, and Beijing Techview System Engineering Co., Ltd.

Through its subsidiaries, CHVC has obtained full legal status as a licensed telecommunications company with the ability to offer products throughout China. The Chinese telecommunications market is the largest and fastest growing in the world, with 812 million fixed land line and mobile phone subscribers as of September, 2006. As of December 2006, China had 137 million Internet users, an increase of 23% over 2005. China is expected to overtake the United States as the country with the largest number of Internet users in approximately two years. CHVC China subsidiaries leverage collaboration and strong relationships with state-owned Telco’s. The company’s focus is on providing innovative telecommunication applications and solutions to all its customers. CHVC plans to grow its customer base in China and other parts of the world through marketing and sales efforts as well as acquiring and merging with synergistic companies.

Synergizing Mainland Operational Platform Solutions

CHVC Chinese subsidiary Beijing CandidSoft Technology Co. Ltd. (CandidSoft) offers VoIP and Office automation solutions for government, academic and commercial customers in China. Candidsoft has used local expertise to research, develop, and establish information and communication platforms for business and government applications. CandidSoft uses “SKY O/A™” as the product trademark and separates products into three general categories: O/A Cooperative Office Solutions, O/A Integrated Office Solutions, and O/A Unified Processing Solutions. The Company has developed China’s first patented Office Automation and Groupware application, in large part guided by the needs of Chinese Government Agencies. This platform was designed for flexibility and may be easily modified or extended to meet the specific needs of each Chinese Government Agency or Large Enterprise Company. SKY O/A™ uses a web-based technology and allows multiple workers to collaborate on a single project. The SKY 0/A™ Office Automation platform currently supports over one million users in China.

The Candidsoft groupware platform can be easily modified to meet the specific needs of its customers. Unlike Lotus Notes and Microsoft Exchange servers that require coding and programming during secondary development, Candidsoft’s patented groupware has many advantages that are specifically suitable for the Chinese market. The platform
allows strong data analysis functions, generation of pre-defined or ad hoc statistical analyses, reportage, workflow set ups and complex process flow documents. The platform provides a strong authority management system that is extremely critical to many Chinese government clients. It also has automatic backup and storage management system that can protect clients’ data and network to be safe and intact.

Candidsoft has established long-term relationships with numerous government and academic customers, such as China Foreign Trade Commission, China Telecommunication Administration Bureau, China Tourism Bureau, China Anti-Poverty Office, Beijing Normal University, and Zhong Shan University, as well as a number of privately-owned businesses.

The Company has recently entered into agreements with two Chinese government entities to provide integrated work management and telecommunications solutions. The National Anti-Poverty Organization (NAPO), and in addition, the Navigation Affair Administration Bureau of the GuangXi Autonomous Region.

CHVC Chinese subsidiary Beijing Techview System Engineering Co., Ltd is a Value-Added Reseller and Systems Integrator that specializes in network design and installation, integrated wiring construction, and network equipment, with its primary focus on providing large video conferencing solutions. Beijing Techview’s projects include computer and telecommunications network construction, intelligent building construction, product development, network product sales, technical consulting, and information services. In Beijing, the Company is a high level authorized dealer for Cisco Systems, HuiWei, 3Com, Polycom Video products, NEC Monitors and many other IT products. Beijing CandidSoft Technology Co. Ltd. (CandidSoft) and Beijing Techview System Engineering Co. LTD (BTSE).

Beijing Techview has built a diligent, experienced and well trained team-many of which are Cisco certified CCNP and CCIE engineers. In Beijing, the Company is a high level authorized dealer for Cisco Systems, HuiWei, 3Com, Polycom Video products, NEC Monitors and many other IT products. BTSE has built a diligent, experienced and well trained team-many of which are Cisco certified CCNP and CCIE engineers. Some of the Company’s customers include: Ning Xia Population Control Bureau, Chong Wen Education Administration, Xing Jiang Military Division, He Bei Province Economic Development Bureau, Qin Zhong Merchant Bank, Chang Sha Navigation Affair Administration Bureau, Jiang Xi Province Education Administration, Qing Dao Hospital, Qing Dao City Navigation Affair Administration Bureau, China Cotton Network, Beijing Engine Manufacturer, Beijing Language School, and the Shang Xi Province School of Chemical Engineering.

Beijing CVC is a telecommunications service provider, holding licenses to operate openly and legally for the delivery of voice and data services throughout China. Beijing CVC offers a range of Hosted Advanced Communications Services, including virtual PBX, managed access and wireless broadband integration. In addition, Beijing CVC has developed a number of supplemental processes, enabling the Company to offer up to 200 platform features and integrate the platform with customer office automation systems. Beijing Techview System Engineering Co., Ltd. is a reseller and systems integrator that specializes in network design and installation, integrated wiring construction, and network equipment, with its primary focus on providing large video conferencing solutions.

Calling From The United States Mainland To The World

Showing an ongoing strategy of expansion through the telecommunications server and provider market, CHVC established its United States subsidiary StarCom Alliance, Inc. as a Florida corporation, a Master Distributor of prepaid Calling Card and prepaid Cellular products. StarCom consists of three companies, Phone House, Inc., Dial Tone Communications Distributors of Prepaid Calling Cards and Prepaid Cellular products, , and Power Prepaid Phone Card Distribution (Power Distribution), acquired January, 2008. Phone House, Inc. and Dial Tone Communications serve their wholesale customer base from a new secure and large facility approximately two blocks from the old location of Phone House, Inc. in Artesia, CA.

These two firms allow Starcom Alliance to provide discount Calling Cards that enable users to call anywhere in the world at significant savings. The companies provide discount calling cards that enable users to call China, India, Mexico, Iran, Pakistan, Brazil, Bangladesh, Sri Lanka, Lebanon or anywhere in the world at significant savings. Virtual calling cards may be used to call from the United States to other countries, to call from other countries to the United States, or to call between countries outside the United States.

CHVC’s President and CEO Bill Burbank said, “We anticipate that with our support infrastructure and financial resources, Power Distribution will purchase more than $40 Million of our StarCom Alliance products in the next 12 months. Burbank continued, “We are also in the final stages of negotiating Exclusive Supplier Agreements with three additional companies located in California that are focused primarily on the Prepaid Calling Card business and together generate over $35 Million annually in revenue, which if completed would boost our U.S. revenues to over $100 Million. Our goal is to complete these Agreements by the second quarter of this year. Prepaid cellular and prepaid calling card products will represent a significant percentage of our U.S. revenues and when added to the results of our Chinese subsidiaries will produce continued strong growth in 2008.”

Prepaid Cellular is among the fastest growing segments of the telecommunications industry targeting a very large credit-challenged population. Starcom calling cards are currently sold through a network of over 90 private distributors, reaching over 10,000 retail outlets. More than 5,000 retail outlets are located in Southern California. As CHVC adds additional companies to the StarCom Alliance, the network will grow further.

Other CHVC current U.S. Operations are:

* DTNet Technologies, Inc., a value-added distributor of advanced broadband products and services. DTNet Tech recently moved from Clearwater, FL into a new Corporate Center location in Tampa, Florida near the airport. DTNet Technologies is a leading value-added distributor and manufacturer of advanced broadband products and services. The Company is also a world-class Fulfillment and Supply Chain Solutions Provider and as such provides this important function to the Company’s Chinese subsidiaries and Asian partners. This operation also provides centralized, cost-effective and efficient warehousing, shipping, receiving and fulfillment for all U.S. operations. CHVC expects significant growth from this subsidiary, as CHVC was recently able to properly fund the operation. More information may be found at www.DTNetTech.com.
* CVC International, Inc was started in January, 2007 and is a Florida-based provider of telecommunications services to CLEC’s, ISPs, IXC’s, PTT’s, Cable companies, large Call Contact Centers and other communication Service Providers. CVC International’s focus is to provide high quality and large volume international routes at competitive prices to its customers. During recent months, the Company has added veteran personnel, purchased rather than rented its switch and billing platform and has projected that it will achieve $3.5 Million during 2008.

Stepping-Stone Multiple Contracts Highlight Global Telephony

Some of the major and multiple advances and new contracts won through CHVC’s Chinese and United States Subsidiaries are:

* Signed Partnership and Revenue Sharing Agreement with China’s Premier Agriculture Network e-Information Provider for China’s 800 million farmers. The partnership and revenue sharing agreement with Golden Agriculture Access, doing business as www.agri.com.cn (AgriAccessCn), is for the supply of CandidSoft’s SKY O/A Enhanced Services Platform and to manage the transition from an informational website like “GOOGLE” to one that creates significant transactional revenue much like “EBAY.” Candidsoft’s SKY O/A™ solution includes hosting, managed services, systems hardware and application software to support e-information access and e-commerce services. CHVC anticipates multiple revenue sharing streams from the contract, including VoIP telephone services, unified messaging, video conferencing, wireless broadband and other advanced voice and data services, membership fees, payment gateway, logistics commissions, traditional advertising revenues and transaction-based E-fees. AgriAccessCn’s website currently receives over one million clicks per day and is growing; it has over 200,000 members and 700 station managers who post and provide updates regionally throughout China daily. AgriAccessCn has 69 pages of customized functions and a database of 19,000 local network, 18,000 information distribution stations and 20,000 agriculture community agents in 40,000 villages. The Company’s service covers 760,000 villages, 40,000 counties, 2,800 districts and 300 major cities.
* Set-up and registered Vastland Holdings (Beijing) Co. Ltd., a Wholly Owned Foreign Enterprise (WOFE) within mainland China. The WOFE is a legal entity that makes it much easier for U.S. based companies to operate within China.
* CHVC acquired three U.S. companies as well as started two new subsidiary companies. During the last few of months of 2007, the Company also has been aggressively pursuing the acquisition of or exclusive supplier relationships with multiple companies in the Prepaid Calling Card and Prepaid Cellular distribution business. CHVC expects to solidify these relationships during January, 2008 and during the first quarter of 2008 add a minimum of $50 million in annual sales to its U.S. operations.

Global Potency Telephony

Participating in the China Access 2008 international economic ‘legacy’ program for the Beijing 2008 Olympic Games, and at the 11th Annual BusinessWeek CEO Forum in Beijing in December, 2007, Hin Hiong Khoo, CHVC Chairman and Director of China Access pointed out that the forum exposed CHVC to “many new and promising opportunities.” He said, “American companies that once thought of China as only one of many market opportunities now realize they must operate in China. We recognized that in order to have a high probability of success and to take advantage of the huge Chinese market, we needed to build an infrastructure within China managed by Chinese nationals. Over the last four years, we have built a solid team both in the U.S. and China, patented technology, cemented strong relationships and partnerships in the right places, and obtained sizable contracts with both Government and large corporations.”

CHVC’s goal is to become the premier enabler in providing next generation technology communication solutions between Asia and the World. Through the Company’s unique and proven growth strategy, Chinese businesses are able to realize the benefits of America’s free enterprise system. In turn, the Company’s Shareholders benefit from the intellectual property, revenue and profits of the Chinese company acquisitions.

Upon obtaining audits of prior fiscal years, the Company plans to file with the Securities & Exchange Commission (”SEC”) to become a full-reporting company, at which time it will apply for a listing on the NASDAQ or the AMEX; and is on schedule to complete these filings in early 2008. Prior to the filing of periodic reports to the SEC, the Company is providing publicly-available financial statements and other current information at the pinksheets.com website.

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