Telecom Communications, Inc. (OTCBB: TCOM)
BEIJING, April 12 /Xinhua-PRNewswire-FirstCall/ — Telecom Communications, Inc. (OTC Bulletin Board: TCOM – News), the Total Solutions Provider, today updates its business groups brief.
1. Entertainment Contents Development and Distributions
IC Star MMS, Limited — The film distribution business
IC Star MMS Limited (”IC Star”; http://www.icstarmms.com ), a wholly-owned subsidiary of the Company, began to establish a film distribution network with the purchase of copyrights to certain films in March 2006. IC Star distributes films, through multiple distribution channels into the Chinese film market, including the internet, mobile phones, TV, VCD/DVDs and the theatrical screening in cinemas across China.
The business model generates revenue by providing sales contents to consumers through websites, mobile phones, cinemas and VCD/DVDs. The network now comprises 1,000 theatrical screenings led by 39 cinema lines, more than 10,000 shops of VCD/DVD retail outlets in China and Sina.com http://ent.sina.com.cn/f/m/bigmovie/index.shtml )for movie promotion and marketing services.
IC Star’s first movie — “‘Big Movie’ is a success as a marketing strategy. It’s just a license to make money for TCOM through the film market in China. We will continue to invest in the spoof movie series this year,” said Liu Yan, COO of TCOM. More coverage of ‘Big Movie’ can be found at http://www.cctv.com/program/cultureexpress/20070122/102144.shtml..
IC Star currently invests $5 million for 3 movie productions in China that start at March. These movies will be released on October, December and next January.
TCOM’s film distribution business forecast revenue of $6-7 million generated from IC Star.
MyStarU.com — The online vocational education business
MyStarU ( http://www.mystaru.com ) is a website dedicated to performing arts education.
The system is a prototype for state-of-the-art delivery of streaming video performing education courses in the music and movie industries in greater China. The new courseware was developed using Guangzhou TCOM’s EDU v5.0 Education Management System and is delivered to viewers via the MyStarU platform. The multimedia content is produced using Adobe Flash® video synchronized presentations and demonstrative video clips. Users can view multimedia performing training presentations that include downloadable video files of course materials and are then able to upload their own video files to teachers for analysis, which affords users the opportunity to have questions answered by course teachers. MyStarU intends to use this new capability to reach hundreds of thousands of young people who are interested in entering the performing arts, music and movie industries. MyStarU’s goal is to deliver education content online without meaningful limitations or restrictions.
The business generates revenues by monthly basic membership fees. MyStarU.com will begin to charge users a monthly fee of US$20 for each end- user starting on January 1, 2007. The Company believes that this new service offering will add one more substantial revenue stream, with users reaching 60,000 in 2007. MyStarU.com is also working with a main talent management firm and production companies in Hong Kong /China to adapt their platforms specifically to suit the unique needs of the artists’ talent market. MyStarU is in co-operation with Sohu.com ( http://yule.sohu.com/s2006/bogeboqjhhx/ ) for promotion and marketing services.
Recently, MyStarU.com has successfully launched a franchise program and sold a master franchise license in Tianjin China. The first master franchisee plans total sales of 20 franchisees in 2007. Total about 20,000 vocational students use their online education programs. Based on forecasts, MyStarU.com will generate revenue of $600,000 licenses fee plus $100,000 monthly royalty fee.
TCOM’s online vocational education business forecast revenue of $12 million generate from sales 10 master franchise licenses by MyStarU.com.
2. IT and Internet Consultant Services
Guangzhou TCOM Computer Tech Limited — IT consultant business
Guangzhou TCOM Computer Tech Ltd. (”GTCT”) — consists of Alpha Century Holdings Limited’s TS, SMS/MMS virtual Call Center CRM Systems, SEO4Mobile, MoDirect, AdMaxB2Search and IBS v4.1 and v5.0 Enterprise Suite, the internet business service total solution business — combined and operated by GTCT, the new formation is a wholly-owned subsidiary of the Company in the PRC. Guangzhou TCOM Computer Tech also integrated the IBS v4.1 and v5.0 Enterprise Suites, which are web-enabling updaters of exchange between corporate user content and end user content. As GTCT integrates with the TS business group of TCOM, it will strategically invest in the PRC, specifically to address new market dynamics and help SME users get the most from end user content while effectively handling changes in capacity, deal terms and players.
The integration expertise was gained through the successful launch of GTCT, and the IBS v5.0 Enterprise Suite strengthens the Company’s core business organization to the SME market, the potential for a total solution business, and the achievement of synergies identified as part of the Company’s strategic investment efforts.
The new products line: e-Government Systems V 5.0, e-Services Systems V5.0 and e-Education Systems V5.0 to allow GTCT provides electronic government, community publicity services systems and education management online services as IT consultant services in China. These products are ideal for local government offices, education and public affairs full function of intranet.
The business runs by consultant fees created through each project, sales software and system maintenance service fees.
TCOM’s IT consultant business forecast revenue of $5-6 million generated from Guangzhou TCOM Computer Tech Limited.
Subaye.com — Internet Corporate Video Provider
The Company currently owns 54% interests of Subaye.com ( http://www.subaye.com ). As the leading internet corporate video provider in the PRC, Subaye.com offers a unique Chinese language corporate video sharing platform for both users and customers. Target clients include potential users in the PRC that demand publishing and sharing their corporate video online over the internet. The platform consists of the Company’s websites and Subaye alliance network, which is our network of third-party websites.
The services are designed to enable internet users to find relevant information video online from our video database, which currently consists of over 20,000 video corporate profiles, as visible video showcase for presentation. It includes Chinese language corporate web pages, news, images and multimedia files, through links provided on our websites. Users can easily access an index of up to a million video clips, images and web pages. Also available is a business to business to consumer-based online auction marketplace, Subaye e-commerce strategic, which currently consists of over 1,000,000 items of product and service as visible video showcase for purchase and sale.
For corporate users, Subaye.com allows companies to post their products with corporate video to the platform and auction marketplace for a monthly fee. The Company launched the internet video services on its Subaye.com website and began generating revenues from corporate video uploading services in November, 2006. Subaye.com has grown significantly since operations commenced in October of 2006 and the corporate video uploading services had 16,007 members as of the end of November 2006. Members are charged with a monthly fee of US$60 after a month trial period. Almost 90% of users paid the monthly fee for continued service after the 30 day free of charge period.
The service provided is distribution through more than 3,000 alliance members (distributors) in China. Under the distribution agreement, the alliance members carry out marketing and sales. Subaye Internet Corporate Video serves as a commission base. Alliance members assist corporate users in the studio, including with DV recording, and deliver videos to Subaye video storage and post to video sharing websites, including YouTube.com. Most of the new distributors are the business partners and agents of Baidu and Google. They will bid search keywords for online promotion with Baidu.com and other search engines from time to time. The potential users of the Internet Corporate Video service are the 20 million Small and Medium size Enterprises in China.
TCOM’s Internet corporate video business forecast revenue of $10 million generated from subaye.com in 2007.
About Telecom Communications, Inc.
Telecom Communications, Inc. (TCOM) is a Total Solutions Provider that offers Integrated Communications Network Solutions and Internet Content Service in universal voice, video, data web and mobile communications for interactive media applications, technology and content leaders in interactive multimedia communications. It develops, markets and sells a universal media software solution for enterprise-wide deployment of integrated voice, video, data web and mobile communications and media applications. Telecom Communications, Inc. does business in Asia via its wholly owned subsidiaries, Alpha Century Holdings Ltd., IC Star MMS, Ltd. ( http://www.skyestar.com ), Guangzhou TCOM Computer Technology Limited ( http://www.mystaru.com ) and majority owned subsidiary Subaye.com, Inc. ( http://www.subaye.com ).
Safe Harbor
The statements made in this release constitute “forward-looking” statements, usually containing the words “believe,” “estimate,” “project,” “expect,” or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, changing economic conditions, interest rates trends, continued acceptance of the Company’s products in the marketplace, competitive factors and other risks detailed in the Company’s periodic report Filings with the Securities and Exchange Commission. By making these forward- looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
Source: Telecom Communications, Inc.
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