TSTC - Telestone's Big 3 Customers
The primary concern about TSTC is their high A/R due to extended net terms of their 'Big 3' customers. If you didn't already know, the 'Big 3' are China Mobile (NYSE:CHL), China Unicom (NYSE:CHU) and China Telecom (NYSE:CHA) who are ranked #1-3 respectively as the top 3 mobile providers in China and who combined currently account for over 95% of TSTC's annual revenue.
China Mobile WEBSITE: http://www.chinamobileltd.com/index.php
* the most valuable mobile telecommunications company in the world
* has over 570 million customers making them the world's #1 mobile subscriber (top 30 list link)
* a state-owned enterprise
* it is listed on both the NYSE and the Hong Kong stock exchange.
* China Mobile controls the vast majority of its domestic mobile services market, with 70% market share. China Unicom and China Telecom have 20% and 10% shares, respectively.
Chine Unicom WEBSITE: WEBSITE: http://www.chinaunicom.com.hk/en/home/default.html
* has over 157 million customers - #10 worldwide
* Market cap of $32 Billion
* China Unicom was founded as a Government-owned corporation, established on July 19, 1994, by the Ministry of Information Industry and approved by the State Council.
* The company also offers its services in the United States, Japan, and the United Kingdom.
China Telecom WEBSITE: http://en.chinatelecom.com.cn/index.html
* has over 74 million customers - #27 worldwide
* is the largest fixed line service and 3rd largest mobile telecommunication provider in the People's Republic of China.
* Chinese government still retains majority ownership
* China Telecom has the largest single WiFi wireless broadband network with over 30,000 hotspot locations covering hotels, restaurants and transportation facilities in over 250 major Chinese cities including Shanghai, Guangzhou, Shenzhen, Nanning, Hangzhou, Chengdu, Dalian, Kunming, Wuhan, Chongqing and Xi'an.
* TSTC has maintained long-term relationships with the Big 3 as customers for thirteen years.
* WFDS (Telestone's technology) currently is the only commercially available solution fully compatible with the service platforms of the Big 3, and offering voice, video, data, wireless LAN, FTTH, Internet, digital cable TV networks and video surveillance.