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July 08, 2008

Buzz Technologies to Launch VoIP Service to China Internet Cafes

By Susan J. Campbell, TMCnet Contributing Editor


Buzz Technologies has announced the anticipated launch of the new VoIP Service to China’s Internet Cafes on July 27, 2008. The company has already made arrangements for it to be installed on close to 200,000 PCs in Internet Cafes in China immediately and 400,000 by January 2009.

 
This new VoIP system offered by Buzz will provide paid discount calling and discounted ad support calling across China. The service is being integrated into Buzz’s Free SMS service that is expected to be launched at the same time.

Buzz is expected to gain an edge on Google (News - Alert) and Baidu in the highly competitive Online Ad and Search Marketing in China due to VoIP, ad supported VoIP and Free ad supported SMS.

Buzz Technologies is currently testing APIs from other Ad Networks with a view to ad sharing agreements with some of the largest ad networks in the world. The move is expected to help build the Buzz Brand as well as increase revenue by as much as 30 percent.

The company takes the position that the current nature of the online ad market and the uncertainty of the Google, Yahoo, Microsoft (News - Alert) situation regarding mergers that it is best prepared for any and all outcomes. Various APIs are scheduled to be tested on sites and search over the next month and will be completed prior to the start of the 2008 Olympics.

The VoIP opportunities that are growing in the China market present significant opportunities for companies such as Buzz Technologies. This latest launch will easily extend the Buzz brand while also providing low cost Internet integration and use for those operating in the China market.  

The company is also preparing for an IPO in Hong Kong under which the current BZTG shareholders will be able to exchange one share in BZTG for one share in the new entity at the time of listing.

The share structure of the new entity is expected to exactly reflect the current 300m with no additional issue. The new entity is then expected to take control of the Texas entity and will see it trading as an ADR on the NASDAQ.

Those seeking to participate in the IPO will need to acquire BZTG stock on market as will Investment Houses and Brokers involved in the IPO. Two Hong Kong brokers are competing for the IPO and an announcement for the lead position will be made in the coming weeks.


 
Susan J. Campbell is a contributing editor for TMC (News - Alert) and has also written for Market Drive News. To see more of her articles, please visit Susan J. Campbell’s columnist page.
 
 
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