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China Wi-Max (OTC-BB: CHWM) Capitalizes on China’s Booming Broadband Industry

China Wi-Max Communications, Inc. (OTC-BB:CHWM), an emerging broadband provider in China, similar to China Tel Group, Inc. (CHTL) or Time Warner Cable, Inc. (TWC) in the United States, is well positioned to capitalize on the country’s compelling broadband trends by targeting a profita-ble niche in key metropolitan areas.

China Wi-Max Communications, Inc. (CHWM) is an emerging business broadband provider focused on China’s largest metropolitan cities and is ready to capitalize on strong trends in one of the world’s fastest growing economies. With a focus on quality and support, the firm expects to rap-idly grow revenues, beginning in Beijing, later this year.

Internet Growth Takes Off in China

The number of Internet users in China grew by around 10% since the beginning of the year alone, according to the China Network Information Center (CNNIC). Meanwhile, the average Internet user in China spends approximately 20 hours per week surfing the web, compared to just 13 hours per week for the average US Internet user.

Business broadband usage is also dramatically rising as the country is widely regarded as the next big emerging market for industry. These trends are apparent in the rapid growth in the country’s commercial real estate market. Since the beginning of the year, the cumulative number of office buildings sold rose 74.5% year-on-year, according to Research In China (RIC).

China Wi-Max is Positioned to Profit

These trends have helped to dramatically boost the profits of many media companies offering products and services on the Internet, but the real opportunity lies in the underlying wireless broadband infrastructure. Currently, the broadband industry is fragmented in China, much the same way it was in the US in the early days, yielding significant opportunity for new entrants.

China Wi-Max is focusing on consolidating broadband offerings within the commercial sector in the country’s ten largest cities. Starting with Beijing by mid to late 2010, the company plans to roll out in five cities in the coming years. Meanwhile, it is focusing on new office buildings and other long-term users who are unlikely to switch providers and willing to pay more for quality.

Profitable Niche in an Emerging Industry

China Wi-Max aims to differentiate itself by providing high-quality service and support to the commercial sector in a market, often plagued with low-quality services. Moreover, its focus on new commercial construction yields higher margins and lower turnover than residential sales, leading to more predictable financial results for investors.

Currently, China Wi-Max is trading with a market capitalization of under $2 million, according to Google Finance. Given its near-term launch of services in Beijing, China’s rapid growth, and the company’s potential over the coming five years as it rolls out its services in new cities, investors may want to consider this emerging growth stock for their portfolios.

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