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1/16/2009
Redflex Expands Red Light Cameras to Red China
Australian red light camera vendor cuts deal with broadband vendor to distribute automated ticketing cameras in China.

ChinaTel and Redflex
Redflex Traffic Systems and ChinaTel Group this week announced their hope of invading the potentially lucrative traffic surveillance market in the People's Republic of China. Under a joint agreement, ChinaTel, a small provider of wireless broadband connectivity, would provide the communications infrastructure required for the red light camera and speed camera ticketing systems as well as provide local sales.

"ChinaTel and Redflex's mutually beneficial partnership will fully leverage their respective strengths on global operation and local distribution, creating synergy, extending their customer base, and expanding potential sales revenue," the companies explained in a press release. "Both parties recognize the importance of the market opportunity for camera enforcement systems in China."

Marketing efforts would focus on convincing officials in the biggest cities to outsource existing traffic collections to Redflex, which is based in Australia. Prime targets include Beijing, Guangzhou, Nanjing, Shenzhen and Shanghai. If successful, a total of 71 million residents would find themselves under additional surveillance.

Cameras already blanket the world's most populous country. According to Xinhua, China's official government news service, total yearly traffic ticket revenue is estimated at over a trillion yuan (US $146 billion) and the cameras are frequently used for additional purposes. Last May, Shenzhen Public Security Bureau employees were caught using traffic cameras to peep into the bedrooms of local residents. The
The ChinaTel Group trades over-the-counter with a stock price that closed yesterday at 53 cents. Redflex trades on the Australian Securities Exchange for A$3.30 (US $2.23) per share.



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