Exhibit 10.12

Contract Number:  DXHZ-JT-20040004

CHINA TELECOM GROUP SYSTEM INTEGRATION CO., LTD.

AND

GUANGZHOU WEIDA COMMUNICATION TECHNOLOGY CO., LTD.

BUSINESS EXPANSION COOPERATION AGREEMENT

August 27, 2004

BUSINESS EXPANSION COOPERATION AGREEMENT

Party A: China Telecom Group System Integration Co., Ltd.

Address: 15 ^th floor, No. 31, Finance Avenue, West City Area, Beijing

Post Code: 100032

Legal Representative: Zhang Xinjian

Party B: Guangzhou Weida Communication Technology Co., Ltd.

Address: the Four of Room 102, Office Building, Science City Area, Development District, Guangzhou

Post Code: 510665

Legal Representative: Li Shunxin

In accordance with the General Principles of the Civil Law of the People’s Republic of China and the Contract Law of the People’s Republic of China, Party A and Party B, adhering to the principles of friendly cooperation, mutual benefit, complementary advantages, and mutual development and through friendly consultation, enter into this “Business Expansion Cooperation Agreement” (“Agreement”) concerning establishing a long-term business expansion cooperative relationship as follows:

Article 1          Scope of Cooperation and Undertakings by the Parties

1.                    The Parties conduct, throughout China and in various fields of trade, cooperation in the expansion, promotion, joint development and application of their businesses.

2.                    Party B agrees that all clauses hereof apply to all branch companies of Party A and any subsidiaries or companies invested by Party A.

3.                    The Parties, adhering to the principles of friendly and pragmatic attitude and mutual benefit, jointly settle all issues occurring during the cooperation.

4.                    Party B agrees to provide Party A and its clients, at the most favored market price for the corresponding period, with quality satellite communications products and relevant services.

5.                    Party B undertakes that the satellite communications products provided by it conform to the corresponding trade standards of China, and have licenses for product use, licenses for operation, and other necessary documents issued by the competent authorities of their trades.

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Article 2          Content of Cooperation

Party B provides Party A and its clients with such satellite communications products and services as follows:

1.                    Satellite communications Products:

Party B is in a position to provide Party A and its clients with following products:

Satellite communications terminal;

Fixed station satellite antenna;

Satellite communications channel;

The catalogue and catalogue price of the above satellite communications products are attached hereto as Attachment 1: List of Satellite Communications Products & Catalogue Price (Where there is any adjustment in the catalogue price of products, the adjusted catalogue price shall prevail.  Party B undertakes to notify Party A promptly of such adjustment.).

2.                    Satellite Communications Services:

Party B is in a position to provide Party A and its clients with following services:

Technical support services;

Equipment renting services;

Installation and debugging of equipment;

Maintenance of equipment and network;

Training services;

The detailed content and catalogue price of the above services are attached hereto as Attachment 2: List of Services & Catalogue Price (Where there is any adjustment in the catalogue price of services, the adjusted catalogue price shall prevail.  Party B undertakes to notify Party A promptly of such adjustment.).

3.                    The flow of collaboration of providing clients with products and services by the Parties is attached hereto as Attachment 3.

4.                    Party B shall, at the same when providing Party A with products and services, provide it with licenses for product use and licenses for operation.

Article 3          Price of Products and Services

Party B undertakes to provide Party A with satellite communications products and services (see Attachment 1 and Attachment 2 for such products and services which Party B provide to Party A and its clients), at following ***:

2

(Remark: contract price = catalogue price  ***)

If Party B conducts unified adjustment in the market price of products and services, Party A and Party B shall consult with each other to re-determine the above ***.

***  Portions of this Article 3 have been omitted pursuant to a request for Confidential Treatment and filed separately with the Securities and Exchange Commission.

Article 4          Method of Payment

1.                    For any satellite communications equipment to be purchased by Party A from Party B, the Parties shall enter into a Project Contract (“Project Contract”) in accordance with this Agreement. All payments for the equipments shall be made by Party A in accordance with the terms of payment specified in the Project Contract, and Party B shall provide complete and corresponding documents, invoices, certificate of arrival, etc.  The method of payment may refer to the terms as follows:

Advance Payment: After the Parties enter into the Contract, Party A shall pay in advance to Party B ***;

Payment on Arrival: After the arrival of goods, if the conclusion of the inspection of such goods conforms to the requirements of the Contract, and after the Parties sign on the conclusion, Party A shall pay to Party B ***.

Payment