8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934

October 21, 2011

Date of Report (date of Earliest Event Reported)

VELATEL GLOBAL COMMUNICATIONS, INC.

(Exact Name of Registrant as Specified in its Charter)

NEVADA		98-0489800
(State or Other Jurisdiction of Incorporation or Organization)	(Commission File No.)	(I.R.S. Employer Identification No.)

12526 High Bluff Drive, Suite 155, San Diego, CA 92130

 (Address of principal executive offices and zip code)

(760) 230-8986

(Registrant’s telephone number, including area code)

NOT APPLICABLE

(Former name or former address, if changed from last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 1.01                      Entry into Material Definitive Agreement

On October 21, 2011, VelaTel Global Communications, Inc., a Nevada corporation and the registrant responsible for the filing of this Form 8-K (“the Company”) and Next Generation Systems Technology Communications Co., Ltd. (“NGSN”), a limited liability company organized under the laws of the People’s Republic of China (“PRC”), entered into a Business Agreement (“Agreement”).  The material terms of the Agreement are as follows (capitalized terms are as defined in the Agreement):

1.           VelaTel, through one of its subsidiaries, shall establish a holding company organized in the Cayman Islands (“Cayman Co”).  Cayman Co shall have a wholly owned subsidiary organized in Hong Kong (“HK Co”).  HK Co shall have a wholly owned subsidiary organized in Beijing, PRC, that also qualifies as a wholly foreign owned enterprise under PRC law (“WFOE,” Cayman Co, HK Co and WFOE collectively, “New Co”).  WFOE shall be licensed to provide the services contemplated under the Agreement.  The board of directors of Cayman Co shall be comprised of three directors, two of whom shall be designated by VelaTel (including the Chairman) and one of whom shall be designated by NGSN.  HK Co and WFOE shall each have one executive director, who shall be designated by VelaTel.

2.           NGSN holds a PRC-issued license to provide value added telecom and information services nationwide in the PRC.  Such authorized services include internet information service, location based service and advertising service to government, enterprise and individual customers, e.g. fleet tracking by GPS, tracking people with Alzheimer disease, tracking children and pets, meter reading services, video surveillance service, trading services, distance education, and agriculture information.  NGSN has the ability to obtain and shall apply for PRC-issued licenses to use radio frequency spectrum in the 1.8GHz and 3.5GHz bandwidth, and has special authorizations for the deployment of wireless broadband access (“WBA”) networks.  NGSN shall authorize one of its subsidiary companies (“NGSN’s Subsidiary”) to carry out the telecom service business (“Business”) that is covered by NGSN’s existing and future telecom business related licenses (collectively “Telecom Licenses”).  The Business of NGSN’s Subsidiary shall focus on the following territories: Heilongjiang Province, Jiangsu Province, Guangxi Autonomous Region, Guangzhou City, and Chongqing City (collectively “Business Territory”). The Parties may broaden the Business Territory through discussion.

3.           NGSN’s Subsidiary and WFOE shall enter into one or more agreements for WFOE to act as the exclusive contractor for NGSN’s Subsidiary to provide deployment management, operation management and other services related to the Business (collectively “Service Agreement”).  WFOE and/or VelaTel shall pay capital expenditures, operating expenditures and other negative cash flow in connection with the Business for NGSN’s Subsidiary.  In principal, the total investment to be made by WFOE and/or VelaTel (including third-party financing), shall be no less than US$10million for each municipality and provincial capital city, and US$8million for any other city. The actual investment intensity and schedule shall comply with a Business Plan to be jointly prepared by NGSN’s Subsidiary and WFOE.  NGSN’s Subsidiary shall pay a service fee to WFOE, the calculation and payment terms of which shall be stipulated in the Service Agreement.  The revenue of NGSN’s Subsidiary shall be used in priority to reimburse WFOE and/or VelaTel for any amounts paid for by either of them, and to repay any financing arranged by WFOE and/or VelaTel.  To ensure the repayment of WFOE’s financing and payment of service fees to WFOE, to the maximum extent authorized by PRC law, the revenue of NGSN’s Subsidiary shall flow directly from the customers to WFOE.  If in case some revenues must be paid to NGSN’s Subsidiary in order to comply with PRC law, it shall be paid to a special account of NGSN’s Subsidiary that is jointly controlled by NGSN’s Subsidiary and WFOE.  The shareholders of NGSN’s Subsidiary shall pledge their shares in NGSN’s Subsidiary to WFOE as collateral for this repayment obligation.

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4.           VelaTel and NGSN shall enter into a Shareholders and Share Subscription Agreement (“Subscription Agreement”), according to which NGSN shall be entitled to obtain up to 45% of the shares of Cayman Co.  25% of the shares of Cayman Co shall be issued to NGSN after the execution of the Shareholders and Share Subscription Agreement, 10% after NGSN obtains licenses to use 3.5GHz spectrum in the Business Territory or other spectrum that is suitable for the Business, and the remaining 10% when New Co is approved for public listing on a stock exchange. In exchange for shares in Cayman Co, NGSN shall ensure the continuous validity of its Telecom License during the term of operation of the New Co, and shall use its best efforts to obtain additional Telecom Licenses, to secure NGSN’s Subsidiary’s exclusive right of use of its Telecom Licenses, and the effective performance of the Service Agreement. Based on the success in obtaining additional Telecom Licenses and the revenue of New Co, NGSN shall be entitled to issuance of Series A common stock of VelaTel, in amounts and based on milestones which shall be detailed in the Subscription Agreement.

5.           As part of its capital contribution for its interest in New Co, VelaTel shall transfer to WFOE its resources concerning the design, planning and engineering works of wireless broadband network in 29 major cities throughout China.  NGSN’s Subsidiary and/or WFOE shall have the right to use such resources when the Business of NGSN’s Subsidiary is expanded to relevant cities.

6.           The Parties shall use their respective best efforts to complete follow up actions identified in the Agreement by the following dates: (1) VelaTel shall create the entities comprising New Co by end of December 2011, (2) the Parties shall draft, negotiate and sign the Services Agreement and Subscription Agreement by end of December 2011, (3) NGSN shall secure the radio frequency licenses by end of March 2011, and (4) the Parties shall use their best efforts to have New Co be listed in a domestic or overseas stock market in about three years.

A fully executed copy of the Agreement is attached hereto and incorporated by this reference as Exhibit 10.1 to this Form 8-K (including internal Annex 1, NGSN’s existing SP license, and Annex 2, list of 29 cities regarding engineering work already performed).

On October 25, 2011, the Company issued a press release announcing the signing of the Agreement.  A copy of the press release is attached hereto and incorporated by this reference as Exhibit 99.1 to this Form 8-K.

Item 9.01                      Exhibits

10.1	Business Agreement between VelaTel Global Communications, Inc. and Next Generation Systems Technology Communications Co., Ltd.
99.1	Press Release

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:           October 25, 2011

VelaTel Global Communications, Inc.,
By:	/s/ George Alvarez
	Name: George Alvarez
	Title:   Chief Executive Officer

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EX-10.1

Exhibit 10.1

Business Agreement

This Business Agreement is made on October21st,2011 in P.R.C.by and between:

VelaTel Global Communications Inc.(“VelaTel”)

Address: 12656 High Bluff Drive, Suite 155, San Diego, California 92130 USA

Next Generation Special Network Communications Technology Co. Ltd. (“NGSN”)

Address: 4th Floor, Putian Building, No. 6 North Second Street, Haidian District, Beijing, 100080, PRC

VelaTel and NGSN are each referred to as a “Party” and together as the “Parties.”

WHEREAS:

A. VelaTel is in the business of designing, building, deploying and operating high speed wireless broadband telecommunications networks in key markets throughout the world. VelaTel has technical expertise, sales, marketing, customer support, relationships with equipment vendors and access to vendor and institutional financing (collectively “VelaTel Resources”).

B. NGSN holds a License for Value-added Telecom Service Business (“SP License”, see Annex 1 to this Agreement), by which NGSN is authorized to provide information service business nationwide in the People’s Republic of China (“PRC”) on wireless networks.

C. NGSN has the ability to obtain licenses from appropriate government agencies in the PRC to use radio frequency spectrum in the 1.8GHz and 3.5GHz bandwidth, and has special authorizations from central, regional and local governments, including but not limited to concessions and other authorizations for the deployment of wireless broadband access networks.

D. The Parties entered into a Memorandum of Understanding on August 26th, 2011, based on which the Parties wish to cooperate with each other, and to define the rights and obligations of each Party pursuant to the terms set forth below.

AGREEMENT

1.             Overview of Project Structure

1.1          NGSN shall, pursuant to relevant PRC laws and regulations, authorize one of its subsidiary companies (“NGSN’s Subsidiary”) to carry out telecom service business that is covered by its SP license and future telecom business related licenses (collectively “Telecom Licenses”). Such authorization shall be legal, irrevocable and exclusive. Without VelaTel’s written consent, NGSN shall not authorize any other third party to use its Telecom Licenses.  NGSN’s Subsidiary shall conduct business that is permitted under the Telecom Licenses.

1.2           VelaTel shall establish a holding company organized in Cayman Islands (“Cayman Co”) through one of its subsidiary companies.  Cayman Co shall have a wholly owned subsidiary organized in Hong Kong (“HK Co”).  HK Co shall have a wholly owned subsidiary organized in Beijing that also qualifies as a wholly foreign owned enterprise under Chinese law (“WFOE”, the Cayman Co, HK Co and WFOE are collectively referred to as “New Co”).  WFOE shall be a technical service company, engaged mainly in the business of telecom service related technology development, consulting, design, deployment management and operation management.

1.3           NGSN’s Subsidiary shall sign a set of agreements with WFOE, to exclusively and irrevocably contract WFOE for the provision of deployment management and operation management and other services by WFOE to NGSN’s Subsidiary (collectively the “Service Agreement”). WFOE and/or VelaTel shall pay capital expenditures, operating expenditures and other negative cash flow in connection with the Business for NGSN’s Subsidiary, and shall arrange financing for NGSN’s Subsidiary.  The revenue of NGSN’s Subsidiary shall be used in priority to reimburse WFOE and/or VelaTel for any amount paid for by either of them, and to repay any financing arranged by WFOE and/or VelaTel.  NGSN’s Subsidiary shall pay a service fee to WFOE, of which the method of calculation and payment shall be stipulated in the Service Agreement. In principal the total investment made by WFOE and/or VelaTel (including third-party financing) shall be no less than US$10million for each municipality and provincial capital city, and US$8million for any other city. The actual investment intensity and schedule shall comply with the Business Plan that shall be jointly prepared by NGSN’s Subsidiary and WFOE. The Business Plan shall be attached to the Shareholders and Share Subscription Agreement as a binding Annex.

1.4           VelaTel shall provide financing to WFOE and NGSN’s Subsidiary, and shall assist WFOE and/or NGSN’s Subsidiary to obtain vendor financing or other third-party financing. WFOE shall repay in priority to VelaTel the amount of financing provided by VelaTel, unless VelaTel consents for WFOE to retain the revenues for further investment until the time of equity capitalization of New Co or other time agreed by VelaTel.

1.5           As part of its capital contribution for its interest in New Co, VelaTel shall transfer to WFOE its resources concerning the design, planning and engineering works of wireless broadband network in 29 major cities throughout China (including Beijing, Shanghai, Guangzhou and other cities, a complete list the cities see Annex 2 to this Agreement）.  NGSN’s Subsidiary and/or WFOE shall have the right to use such resources when the Business of NGSN’s Subsidiary is expanded to relevant cities.

1.6           To ensure the repayment of WFOE’s financing and payment of service fees to WFOE, to the maximum extent authorized by PRC law, the revenue of NGSN’s Subsidiary shall flow directly from the customers to WFOE.  If in case some revenues must be paid to NGSN’s Subsidiary in order to comply with PRC law, it shall be paid to a special account of NGSN’s Subsidiary that is jointly controlled by NGSN’s Subsidiary and WFOE.  The shareholders of NGSN’s Subsidiary shall pledge their shares in NGSN’s Subsidiary to WFOE as collateral for this repayment obligation.

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1.7           VelaTel and NGSN shall sign a Shareholders and Share Subscription Agreement, according to which NGSN is entitled to obtain up to 45% shares of Cayman Co.  25% shares of Cayman Co will be issued after the execution of the Shareholders and Share Subscription Agreement, 10% shares will be issued after NGSN obtains approval from relevant government authorities to use the 3.5GHz spectrum in the Business Territory (as defined in Article 2.3) or other spectrum that is suitable for the Business, and the rest 10% will be issued when the New Co is approved for public listing on a stock exchange. In exchange for shares in Cayman Co, NGSN shall ensure the continuous validity of its Telecom License during the term of operation of the New Co, and shall use its best efforts to obtain additional Telecom Licenses, to secure NGSN’s Subsidiary’s exclusive right of use of its Telecom Licenses, and the effective performance of the Service Agreement. Based on the success in obtaining additional Telecom Licenses and the revenue of New Co, NGSN shall be entitled to issuance of Series A common stock of VelaTel, in amounts and based on milestones which shall be detailed in the Shareholders and Share Subscription Agreement.

2.              Business and Territory

2.1           The business of NGSN’s Subsidiary shall cover all the business that is permitted by NGSN’s Telecom Licenses, and other related business (collectively “Business”), which mainly includes wireless broadband network operation, internet information service, location based service and advertising service to government, enterprise and individual customers, e.g. fleet tracking by GPS, tracking people with Alzheimer disease, tracking children and pets, meter reading services, video surveillance service, trading services, distance education, and agriculture information.

2.2           WFOE shall be the exclusive contractor to provide service to NGSN’s Subsidiary for the aforementioned Business. Where a special qualification or expertise is required for any kind of service, WFOE shall have the right to sub-contract such service to a qualified third party after notify NGSN’s Subsidiary in written.

2.3           The Business of NGSN’s Subsidiary will mainly focus on the following territories: Heilongjiang Province, Jiangsu Province, Guangxi Autonomous Region, Guangzhou City, and Chongqing City (“Business Territory”). The Parties may broaden the scope of Business Territory through discussion.

3.             The Operation and Management of New Co

3.1           New Co shall establish a Board of Directors (the "Board") which shall be composed of 3 directors, of which 2 directors shall be designated by VelaTel and 1 director shall be designated by NGSN. The Chairman of the Board shall be one of the directors appointed by VelaTel.

3.2           HK Co and WFOE shall each have an executive director, who shall be designated by VelaTel.

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3.3           VelaTel shall be responsible for the operation and management of WFOE.  NGSN shall be responsible for monitoring the operation of WFOE to ensure WOFE’s operations comply with relevant PRC rules on internet security, information security and national security.

3.4           WFOE shall assist NGSN’s Subsidiary on formulating its business development plan.  NGSN shall assist NGSN’s Subsidiary to obtain necessary licenses for conducting the business planned by NGSN, or shall obtain the necessary licenses in its own name, and then grant exclusive right of use to NGSN’s Subsidiary.  NGSN shall also assist NGSN’s Subsidiary to obtain government contract opportunities by using its resources.

3.5           The Parties shall make efforts to have New Co.be listed in a domestic or overseas stock market in about three years. VelaTel shall assist New Co in fulfilling such objective with its overseas financing resources and legal/financial professionals.

4.              Follow-up Actions

4.1           After the signing of this Agreement, the Parties shall jointly form a working group to promote the implementation of this Agreement. The working group shall consist of core management and technical staff of each Party, with Robert C. V. Chen, Executive VP and China GM to be the team leader of VelaTel, and Lu Bin, GM to be the team leader of NGSN.

4.2           VelaTel shall start with the formation of the entities comprising New Co, and endeavor its best efforts to establish New Co by the end of December 2011.

4.3           NGSN shall start to apply for 1.8G and 3.5G spectrum usage approval in the Business Territory, and endeavor its best efforts to obtain the approval by the end of March 2012.

4.4           The Parties shall start the drafting and negotiation of the Shareholders and Share Subscription Agreement and Service Agreement, the signing of which shall take place by the end of December 2011.

5.              Confidentiality

5.1           The confidential information in this Agreement includes this Agreement itself and the content it concerned, and any information obtained by one Party from the other Party or its affiliated company, during the execution and performance of this agreement, regarding its business, operation and marketing, technology etc., or document which has been taken confidential measures or marked as “Confidential”.

5.2           Both Parties guarantee that the confidential information shall only be used for the purpose related to this Agreement. Without the other Party’s written consent, neither Party shall disclose, publish, sell or transfer the confidential information in any way.

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5.3           Either Party’s disclosure of confidential information according to the requirements of law or relevant supervision authority shall not be considered as breach of confidentiality obligation.

5.4          The confidentiality obligation of both Parties shall continue to be valid during the term of this agreement and continue for two years after this Agreement is terminated.

6.             Breach and Termination

6.1          Either Party that breaches this Agreement and causes loss to the other Party shall compensate the other Party’s loss arising from its breach, including but not limited to attorney fees and financial expenses that the other Party incurs for the execution and performance of this Agreement.

6.2          Before the date of expiration, this Agreement may be terminated through both Parties’ discussion.

7.             Governing Law and Dispute Resolution

7.1           This agreement and any dispute arising from it shall be governed and construed by Hong Kong law, without regard to the conflict of laws principles thereof, as the same apply to agreements executed solely by residents of Hong Kong and wholly to be performed within Hong Kong.

7.2           Any dispute relating to this Agreement shall be submitted to Hong Kong International Arbitration Center for resolution conducted pursuant to its procedural rules at the time of arbitration. The arbitration award shall be final and binding on both Parties, and may be enforced in any court of competent jurisdiction.  The prevailing Party in the arbitration shall be entitled to recover from the non-prevailing Party its reasonable attorney fees and other costs and expenses incurred in connection with the arbitration and/or any action to enforce the results of the arbitration.

8.              Others

8.1           Each Party shall bear its own expense arising from the execution and performance of this Agreement unless it is otherwise provided in this Agreement.

8.2           The Parties shall comply with all United States and Chinese laws and regulations applicable to the performance of their obligations under this Agreement and any anticipated follow-on agreement, including, but not limited to, the provisions of the United States Foreign Corrupt Practices Act.  Neither Party shall pay, promise to pay or authorize the payment of money or anything of value, directly or indirectly, to any person (whether a governmental official or a private individual) for the purpose of illegally or improperly inducing or attempting to induce any foreign official or political party or official thereof to make a buying decision or illegally or improperly assist New Co. in obtaining or retaining business, or to take any other action favorable to the Parties in connection with any proposed transaction between the Parties or a third party.

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8.3           This Agreement constitutes the entire agreement between the Parties concerning the subject matter of this Agreement and shall supersede all previous written or oral agreements between the Parties.

8.4           The annexes to this Agreement are an integral part of this Agreement and have the same legal effect as this Agreement.

8.5           For matters that are not addressed in this Agreement, a supplementary agreement may be made by the Parties through discussion.

8.6           This Agreement is executed in both the English and Chinese language.  In the event of any conflict between the two languages on the meaning or interpretation of a word, phrase or clause in this Agreement, the English language version shall prevail.

8.7           This Agreement shall come into effect from the date that both Parties’ authorized representatives sign on this Agreement.

This Agreement has been signed by the authorized representatives of each Party on the date indicated above.

VelaTel Global Communications, Inc.

By: /s/ Colin Tay

Authorized representative：

Colin Tay

Title: President

Next Generation Special Network Communications Technology Co. Ltd

By: /s/ Tianli Sui

Authorized representative：

Tianli Sui

Title: General Manager

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Annex 1

Annex 1-1

Annex 2

ANNEX 2 TO BUSINESS AGREEMENT BETWEEN VELATEL AND NGSN

29 PRC CITIES WHERE VELATEL HAS PERFORMED ENGINEERING WORK

Beijing   Changchun   Changsha   Chengdu   Chongqing   Dalian   Fuzhou   Guangzhou   Guiyang   Ha’erbin   Haikou   Hangzhou   Jinan   Kunming   Lanzhou   Nanchang   Nanjing   Nanning   Ningbo   Qingdao     Shanghai   Shenyang   Shenzhen   Shijiazhuang   Taiyuan   Wuhan   Xi’an   Xiamen   Zhengzhou  

 Annex 2-1

EX-99.1

Exhibit 99.1

VELATEL SIGNS AGREEMENT TO PROVIDE A 4G NETWORK IN CHINA

VelaTel will act as both a service provider to and a joint venture partner with NGSN for NGSN and its affiliates to act as anchor tenants of a 4G network

SAN DIEGO, CA – OCTOBER 25, 2011 – US-based VelaTel Global Communications (OTCQB: VELA) (VelaTel), a leader in deploying and operating wireless broadband and telecommunication networks worldwide, today announced it has entered into a Business Agreement with Next Generation Special Network Communication Technology Co., Ltd. (NGSN) in the People’s Republic of China (PRC).NGSN already holds a PRC-issued value added services license to provide location based tracking services and other information service nationwide.  VelaTel will form a PRC operating company to be jointly owned with NGSN but subject to VelaTel’s control.  The operating company will enter into an exclusive services contract with NGSN to deliver the information services and a 4G Network in China.  The parties will work on the deployment of a 4G network that will employ TD-LTE technology using equipment already commercially available and manufactured by VelaTel’s strategic partner ZTE Corporation.  VelaTel will finance and the joint venture will own the infrastructure equipment.  VelaTel will also provide all engineering and network management services, including engineering VelaTel has already completed for 29 major PRC cities in connection with a different WBA project.  VelaTel and NGSN expect to finalize the services contract and form the joint venture company before the end of 2011.

NGSN was founded from a group of other technology institutes to support other state owned companies and central government agencies in advancing private network telecommunications technologies.  NGSN’s current activities include projects related to transportation, including GPS tracking technologies, remotely delivered education services, and agriculture technologies.  For further information about NGSN, please visit www.ngsn-china.com.  The first phase of the network VelaTel will deploy and operate for NGSN will cover the Heilongjiang Province in northeast China, with a population of approximately 39 million, and will utilize NGSN’s existing value added services license to deliver personalized navigation and location based services (LBS) including GPS, mobile resource management solutions that allow enterprises to monitor and manage mobile workforces and assets.  The operating company will distribute its services to consumers, wireless carriers, enterprises and automobile manufacturers, and original equipment manufacturers.  The network will be expanded to other regions as well as by offering 4G Network services in China.

NGSN’s WBA Division GM Mr. Lu Bin noted:  “China is seeing unprecedented demand for vertical M2M (machine to machine) solutions.  In addition to location based services, applications include home automation, energy saving/environmental protection, industrial automation, health care, precision agriculture, public security and video surveillance.”

VelaTel’s CEO, George Alvarez, commented: “The NGSN project represents an expansion and diversification of the services VelaTel delivers, particularly in China.  Instead of a retail consumer model, and the attendant challenges of marketing budgets and competition with other carriers for subscribers, this transaction reflects a business to business model, with NGSN acting as both the “anchor tenant” and the broker with a financial incentive to expand the network’s paid users by recruiting other affiliated businesses.”  VelaTel’s President, Colin Tay, also pointed out:  “We are pleased and honored to be working with a prestigious company like NGSN.  We look forward to assisting them to deliver location based services to their diverse customers in addition to deployment of a 4G network.”

About VelaTel Global Communications, Inc.

VelaTel acquires spectrum assets through acquisition or joint venture relationships, and provides capital, engineering, architectural and construction services related to the build-out of wireless broadband telecommunications networks, which it then operates by offering services attractive to residential, enterprise and government subscribers.  VelaTel currently focuses on emerging markets where internet penetration rate is low relative to the capacity of incumbent operators to provide comparable cutting edge services, and/or where the entry cost to acquire spectrum is low relative to projected subscribers.  VelaTel currently has project operations in People’s Republic of China and Peru.  Additional target markets include countries in Latin America, the Caribbean, Southeast Asia and Eastern Europe.  VelaTel’s administrative headquarters are in San Diego, California.  For more information, please visit www.velatel.com.

Safe Harbor Statement

This press release contains forward-looking statements that involve risks and uncertainties.  Actual results, events and performances could vary materially from those contemplated by these forward-looking statements.  These statements involve known and unknown risks and uncertainties, which may cause the Company's actual results, expressed or implied, to differ materially from expected results.  These risks and uncertainties include, among other things, product demand and market competition.  You should independently investigate and fully understand all risks before making an investment decision.

VelaTel Contacts:

Media/Analyst Relations	Retail Investors
Kimberley Brown	Tim Matula
Core Insights 360 PR	VelaTel Global Communications, Inc.
Public Relations	Investor Relations
1-404-314-2900	(Toll Free) 1-877-260-9170
kbrown@coreinsights360.com	investors@velatel.com

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