DALLAS, Jan. 3, 2007 (PRIME NEWSWIRE) -- IElement Corporation (OTCBB:IELM) (Frankfurt:SZQ1.F or IELM.F), a nationwide provider of advanced communications services and Voice over Internet Protocol (VoIP) solutions, announced today that it has entered into an agreement with Sutioc Enterprises, Inc. to provide certain management services to Sutioc's majority-owned subsidiary, US Wireless Online, Inc. (Pink Sheets:UWRL).
The deal gives IElement operational management of over 1,500 business customers that produced over $3.5 million in 2005 revenue. In addition to adding revenue, IElement will not incur significant expenses in servicing this contract since the company will be able to employ currently underutilized personnel and network resources, possibly making this a very lucrative relationship for IElement.
IElement will realize additional benefits by introducing its diverse line of products and services to the US Wireless customer base. Past results have shown that the "sell through" sales model is a very effective method with which to introduce new products to a captive audience. This is particularly clear with respect to the US Wireless customer base because as it currently exists, US Wireless is a data-only provider. There are significant opportunities for IElement to deploy its VoIP service to these customers along with Managed Microsoft Exchange, data/disaster recovery and storage, anti-virus/anti-spam solutions and other applications.
As part of the agreement, IElement will provide customer service, technical support, network management, accounting, billing and collections services as well as act as an advisor to US Wireless' current management team.
US Wireless and Sutioc Enterprises also stand to benefit from the considerable efficiencies this agreement creates. US Wireless will gain valuable telecom experience and leadership from both Sutioc and IElement's management teams and will be able to streamline its operations and reduce administrative and operational costs.
Sutioc, who purchased 30 million IElement shares in exchange for a $900,000 promissory note last week, then used those IElement shares to purchase a 50.1% equity stake in US Wireless, has already been able to retire in excess of $3.5 million of US Wireless debt and has helped to shore up US Wireless' balance sheet and operations.
You can find other IElement news at www.ielement.com/news.htm.
About IElement Corporation
IElement is a facilities-based nationwide communications service provider that provides state-of-the-art telecommunications services to small and medium sized businesses ("SMBs"). IElement provides broadband data, voice and wireless services by offering integrated T-1 lines as well as a Layer 2 Private Network and VOIP solutions. These solutions provide SMBs with dedicated internet access, customizable business solutions for voice, data, wireless, internet, and secure communications channels between the SMB offices, partners, vendors, customers and employees without the use of a firewall or encryption device. IElement has a network presence in 18 major markets in the United States, including facilities in Los Angeles, Dallas and Chicago.
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For more information on IElement, please visit www.ielement.com.