Vertically integrated wireless telecommunications company, HotCloud Mobile, Inc., released news today that it is establishing a wholly-owned subsidiary, Stars Wireless, Inc., to build out a multi-channel distribution infrastructure and also manage retail and wholesale channels.

HotCloud will provide its new subsidiary with inventory financing, distribution capital, and multi-channel product distribution. HotCloud will also use its distribution network and historic customer base to promote and market Stars Wireless, Inc.

Mr. David J. Bleeden, CEO of HotCloud Mobile, Inc., remarked, “Stars Wireless will pre-load HotCloud Mobile applications onto its phones, PDAs and tablets, which will allow us to reach every customer who buys equipment directly and indirectly through wholesalers. For every customer that buys a phone from Stars Wireless we’re getting a potential app sale that will generate recurring revenue to HotCloud. For example, when you consider the opportunity that getting a million handsets into consumers’ hands creates, the business model becomes really exciting.”

The subsidiary will work directly with the company’s direct-to-consumer website.

“We have a wholesale customer list of about 2,000 clients. These are people I have done business with previously, sold branded phones and mobile accessories to and have an established relationship with,” Bleeden said.

He continued, “Our new wholesale subsidiary, Stars Wireless, Inc., will be led by an established industry veteran who brings immense experience and past successes to our organization. We feel that we can move hundreds of thousands of mobile handsets, pre-loaded with our licensed apps, in the first six to nine months. This will form the cornerstone of our equipment business.”