2. Executive Summary
MVAS market in China is valued at USD 18.2 bn in 2008; expected to reach USD 34.5 bn by 2011
At present, 80% of the mobile consumers are using mobile value‐added services
Market
SMS and Caller Ring Back Tones (CRBT) are the two most popular MVAS services in China
MVAS providers rely primarily on mobile operators to provide billing and collection services
Drivers: Challenges:
– Increasing mobile penetration – MVAS providers are highly dependent
Drivers &
Di & – Growing popularity of mobile entertainment
l f bl on telecom operators
on telecom operators
Challenges – Rising income levels – Competition from free WAP sites
– Declining ARPU – Billing and transmission failures
– Introduction of 3 G
Market comprises of four types of MVAS players
Pure MVAS Players Internet Portal Operators Telecom Operators Niche Service Provider
g g
Kongzhong Sina China Mobile Tencent
Competition
C titi
Hurray! Holding Tom China Unicom ‐
MVAS firms also face competition from free WAP portals
Relationship between mobile operators and MVAS firms is changing from cooperation to
Relationship between mobile operators and MVAS firms is changing from cooperation to
competition
MOBILE VALUE ADDED SERVICES – CHINA.PPT 2
4. The Chinese mobile market has the world’s largest
subscriber base and it is growing at 18% annually
Mobile Market in China Mobile Subscribers
•The Chinese market has three mobile mn
operators with China Mobile dominating: 800 +18%
China Mobile 641
600 548
China Unicom 461
400
China Telecom
•Total Revenues: China’s three main telecom
Total Revenues: China s three main telecom 200
firms attained a combined revenue of USD 103 0
bn in 2008 2006 2007 2008
•Total Subscribers: 982.2 mn (2008)
Wireless Operators Market Share (2008)
Mobile subscribers account for 65% of total
Mobile subscribers account for 65% of total
subscriber base China Telecom
•Prepaid to Postpaid ratio ‐ 2:1 4.5%
China Unicom
•Projections 2010: 21.5%
Telecom business volume: 12% growth
Business revenue: 4.5% growth
817 mn mobile subscribers 73.9%
China Mobile
China Mobile
MOBILE VALUE ADDED SERVICES – CHINA.PPT 4
6. The value chain includes operators, content developers, and
service providers with the latter getting the bulk of revenue
Content Content ‘Monternet’ Content
China Mobile
Content Service
Operator
Developer Provider
‘Uni‐Info’
Payment Payment China Unicom Payment Users/ Buyers
Content
• Content providers develop content such as the wallpapers, games, ring tones etc.
Developer
• Service providers produce, aggregate and repackage content as mobile value‐added services
p p , gg g p g
Service Provider
S i P id
which are delivered through the mobile operators’ network
Operator • Mobile operators deliver value‐added services through their network
Monternet Uni‐Info
Content • Monternet is operated by China Mobile
Delivery • Uni‐Info is operated by China Unicom
• Revenue split is 91:9 or 85:15 depending
Platforms • Revenue split is 90:10
on which party bills end users
• Service providers take majority of share
• Service providers take majority of share
Service providers take majority of share
MOBILE VALUE ADDED SERVICES – CHINA.PPT 6
7. Services Offered
Popular MVAS Services
News and Information Community
y Multimedia Downloads
• Headline news
• Financial news • Dating and friendship • Ring tones
• Technology news • Games and quizzes • Logos and pictures
• Sports news
p • Educational products
p • Screen savers
• Weather forecast • Email • Music
• Fortune‐telling • Video Clips
• Jokes
Popular Services by Mobile Generation
2 G 2.5 G
2.5 G 3 G
3G
Video Location
Mobile
SMS IVRS CRBT WAP MMS on
on Based
Based
TV
Demand Services
MOBILE VALUE ADDED SERVICES – CHINA.PPT 7
9. The entry procedure for offering MVAS is considered to be
lengthy and difficult
Find Chinese VAS Partner
Establish Foreign‐invested
telecom enterprise (FITE) Maximum 50% share of foreign company
Min. registered capital
Provide VAS Application to USD 146,430
across
No Telecom
several Administration Bureau
provinces (TAB) of the province
(TAB) of the province
Min. registered capital
Yes USD 1,464,300
Apply for VAS
license with Apply for Compliance
Provide MVAS
Ministry of Obtain VAS license Testing with mobile
Information operator Services
Industry (MII)
MOBILE VALUE ADDED SERVICES – CHINA.PPT 9
10. Government requirements vary depending on the stage or
status of an entity for becoming a MVAS provider
Stages in Market Entry
• MVAS providers need a minimum registered capital of USD 1.46 mn for providing services across provinces
• Minimum registered capital is USD 146,430 for providing MVAS services in one province, an autonomous region,
or a municipality
• The ultimate capital contribution ratio of the foreign investors in a foreign‐funded telecommunications
enterprise providing value‐added telecommunications services cannot exceed 50%
Establish FITE • Major Chinese investor is defined as investor having minimum 30% share amongst all Chinese investors
M j Chi
Major Chinese investor must possess appropriate funds and specialized staff according to requirements stipulated by MII
i t t i t f d d i li d t ff di t i t ti l t d b MII
• Project proposal and documents have to be submitted to Management Department of Information Industry
• The applicant are required to submit contracts used to establish a FITE to Ministry of Commerce
• License has to be acquired from Management Department of Information Industry
• Enterprise registering procedure has to be completed in Bureau of Industry &Business Administration
Enterprise registering procedure has to be completed in Bureau of Industry &Business Administration
• Only an approved Foreign Invested Telecom Enterprises can apply for MVAS license
Apply for a
• The company must apply to the local TAB for the license to provide value‐added services within a single province
license as a
• The company must apply to MII for the license to provide value‐added services covering multi‐provinces
service provider
service provider • The period of validity of the license is 5 years
Cooperation with
• MVAS provider have to clear conformance tests from mobile operator
a mobile
• Finally, MVAS providers negotiate contracts with operators for service provision
operator
t
MOBILE VALUE ADDED SERVICES – CHINA.PPT 10
12. MVAS industry is highly regulated in China
Regulations for the Administration of Foreign‐Invested Telecommunications Enterprises
• A foreign entity is prohibited from owning more than 50% of the total equity in any value‐added
telecommunication services business in China
• Under M&A Rules, equity or assets merger and acquisition of PRC enterprises by foreign investors are
subject to approval from the Ministry of Commerce or its competent local branches
Short Message Services
Sh S i
Government • Telecom operators may only cooperate with licensed information service providers for SMS
Regulations • Certain types of SMS require customer’s explicit confirmation on acceptance of charges before such services
could be billed for
• The service providers need to provide an easy and clear cancellation mechanism for their customers
Pricing and Billing of Mobile Information Services
• The pricing and billing of MVAS must be accurate clear and fair
The pricing and billing of MVAS must be accurate, clear and fair
• Mobile value‐added service provider cannot charge a customer unless the customer responds to two
customer requests
• Service providers have to maintain detailed invoices for each customer for more than five months
• Telecom operators are required to first deal with customer complaints, requests for refunds and related
matters
MOBILE VALUE ADDED SERVICES – CHINA.PPT 12
13. MVAS firms need to obtain various approvals for providing
internet publications, games & audio visual services
Regulation for Internet Publication
• The Internet Publication Measures require internet publishers to secure approval from the State News and
Publications Administration (SNPA) to conduct internet publication activities
• Internet publication includes online dissemination of books, newspapers, periodicals, audio and video
products, electronic publications, and other sources that have already been formally published or works
that have been made public in other media
Regulation for Internet Games and Culture Activities
Regulation for Internet Games and Culture Activities
• The Internet Culture Measures came into effect on July, 2003
Government
• Service provider is required to obtain a license for Internet Culture Business Operations from the Ministry of
Regulations Culture
Regulation for Internet Audiovisual Program Services
• State Administration of Radio, Film, and Television (SARFT) and the Ministry of Industry and Information
Technology jointly issued the Rules for the administration of Internet audiovisual program services which
came into effect as of January 31, 2008
• The rules apply to the provision of audiovisual program service via internet including mobile internet
• Providers of internet audiovisual program services are required to obtain an Internet Audiovisual License or
complete certain registration procedures prior to providing Audiovisual Program Services
• Service providers who were engaged in internet audiovisual program services prior to the promulgation of
the rules and who have not violated any other laws or regulations are eligible to register their business and
th l d h h t i l t d th l l ti li ibl t i t th i b i d
continue their operations
MOBILE VALUE ADDED SERVICES – CHINA.PPT 13
15. MVAS is growing at 29% annually as operators diversify
revenues from non‐voice services to offset declining ARPU
Market Overview Market Size and Growth
• Mobile operators in China have been aggressively
USD bn
promoting MVAS to offset the decline in Average
Revenue Per User (ARPU), which is predominantly
R P U (ARPU) hi h i d i l 40 34.5
voice‐based revenue +29%
30
• At present, 80% of mobile consumers use MVAS 18.2
20
• SMS and Caller Ring Back Tones (CRBT) are the two 9.6
most popular MVAS Services in China
most popular MVAS Services in China 10
% Revenue 2008 China Mobile China Unicom 0
2006 2008 2011e
SMS 12.21% 10%
VAS’s Share of Total Revenue
CRBT 3.5%
3 5% 3.8%
3 8%
China Telecom
• Advanced MVAS services based on WAP/
China Unicom
MMS/Java/BREW platforms are also becoming 27.5%
China Mobile 25.7%
popular
• Currently China’s mobile operators deliver their
Currently, China s mobile operators deliver their
services through 2 & 2.5G wireless standards
10.9%
MVAS market in China is evolving from 2G services to 2.5G 9.0%
and will continue with 3G standards
• MVAS providers rely primarily on mobile operators to n/a 0.8%
provide billing and collection services 2007 2008
MOBILE VALUE ADDED SERVICES – CHINA.PPT 15
17. Drivers ‐ Summary
Growing popularity of Mobile
Increasing Mobile Penetration Rising Income levels
Entertainment
Demand Side
Drivers
Supply Side
pp y
Declining ARPU Introduction of 3G
MOBILE VALUE ADDED SERVICES – CHINA.PPT 17
18. Increasing mobile penetration and income levels are driving
growth in Chinese MVAS industry
Increasing Mobile Penetration Impact
• Increasing mobile penetration has helped in the growth of MVAS industry in China
• Over half of China’s population now has mobile phones
• About 80% of China’s mobile phone users utilize mobile value added services
% Mobile Penetration
60 54.3
41.6
40 35.0
20
0
2006 2007 2008
Rising Income levels Impact
• China has experienced rapid growth in per capita GDP since it began reforms in 1979
• The rapid rise in living standards has thus increased demands for telecom services in both
quantity and quality
% GDP Growth Rate %
20 11.1% 11.4%
9.1% 10.0% 10.1% 9.9% 9.0%
10
0
2002 2003 2004 2005 2006 2007 2008
MOBILE VALUE ADDED SERVICES – CHINA.PPT 18
19. Growing popularity of mobile entertainment and declining
ARPU are driving growth in this sector
Growing popularity of Mobile Entertainment Impact
• New media services such as mobile music, games, and mobile TV are fast gaining popularity in
Chinese MVAS market
• China Mobile launched Music Club in July 2006 in cooperation with service providers, handset
vendors content providers which include EMI, Warner, Sony‐BMG and Universal
Mobile music club to offer one‐stop services including music downloads and sharing
• China Unicom is increasing direct cooperation with music content providers, and has already
signed contracts with Warner Music and Global Music International on content sourcing
signed contracts with Warner Music and Global Music International on content sourcing
Declining Average Revenue Per User (ARPU) Impact
• Falling ARPU in telecom sector has made it imperative for telecom operators to search for other
Falling ARPU in telecom sector has made it imperative for telecom operators to search for other
lucrative revenue sources such as mobile VAS
Monthly ARPU China Mobile
USD -6.1%
20 13.2 12.2
8.5
10
0
2006 2008 2013
MOBILE VALUE ADDED SERVICES – CHINA.PPT 19
20. Introduction of 3G services is a positive development for
this sector
Introduction of 3G Impact
• China's telecom industry entered the 3G era in January 2009
China Mobile, has won a license for TD‐SCDMA, the domestically‐developed 3G standard while China Telecom
and China Unicom, received licenses for the US‐developed CDMA2000 and Europe's WCDMA, respectively
d Chi U i i d li f th US d l d CDMA2000 d E ' WCDMA ti l
• 3G high‐speed networks being capable of handling faster data downloads, allowing handset users
to make video calls and watch TV programs
• An on‐line survey revealed that 65% of respondents would choose 3G network service
• 3G era will accelerate the growth of MVAS because the substantial improvements in data
3G era will accelerate the growth of MVAS, because the substantial improvements in data
transfer rates of the 3G network would encourage more applications and services to be
developed
MOBILE VALUE ADDED SERVICES – CHINA.PPT 20
21. Challenges ‐ Summary
MVAS providers are highly
dependent on telecom
operators
Challenges
g
Competition from free WAP
Billing and Transmission Failures
g
sites
it
MOBILE VALUE ADDED SERVICES – CHINA.PPT 21
22. Dependency on telecom operators and competition from
free WAP websites impede industry growth
MVAS providers are highly dependent on telecom operators Impact
• MVAS providers have arrangements with wireless operators, who are entitled to a service and
transmission fee for the transmission of content as well as billing and collection services
• MVAS providers rely on the operators to maintain accurate records of the fees paid by users
• MVAS providers are dependent on operators for prominently positioning their services on menu of
services for each major service category
• MVAS providers generally pay mobile operators up to 15% of the fees they generate from providing
services to users through mobile operators’ network
i t th h bil t ’ t k
China Mobile applies a 50‐50 arrangement for some services such as downloads of mobile video clips
Mobile operators deduct a net transmission charge from MVAS providers’ fees
• Operators have developed their own platforms, which are better integrated into their services,
thus directly competing with MVAS providers
thus directly competing with MVAS providers
China Mobile is planning to implement centralized management of its music content in 2010
China Mobile's provincial branches are planning to stop introduction of new CRBT partners and stop renewal of
contracts with existing partners
Competition from free WAP sites Impact
• MVAS providers face competition from free WAP sites in the mobile internet market
• There are over 9000 free WAP websites in China, most of them adopt free business patterns
similar to that of web‐based sites
• Free WAP sites account for over 90% of data traffic on China Mobile’s network
MOBILE VALUE ADDED SERVICES – CHINA.PPT 22
23. Billing and transmission failures hamper industry growth
Billing and Transmission Failures Impact
• MVAS service providers do not collect fees for their services from the telecom operators in a
number of circumstances which include:
Delivery of service to a customer fails on account of phone being turned off for an extended period
Customer’s prepaid phone card has run out of value
Customer has ceased to be a customer of the applicable mobile operator
Technical problems with network of telecom operator thus preventing the delivery of MVAS services
Technical problems with MVAS provider
Technical problems with MVAS provider
Customer refusing to pay due to quality or other problems
• Telecom operators monthly statements to service providers, do not contain information about
billing and transmission failures
This makes it difficult for MVAS providers to effectively analyze their financial performance
Thus, MVAS providers at times overpay content providers
MOBILE VALUE ADDED SERVICES – CHINA.PPT 23
25. MVAS market comprises of four types of players
Competition Overview Key Participants
• Market comprises of four types of MVAS players: Internet Niche
Pure MVAS including companies like Linktone, KongZhong, Pure MVAS Telecom
Portal Service
MTone Wireless Players
Pl operators
t
Operators Provider
Internet portal operators who also provide mobile value‐
added services like Tom Group, Sina corporation and Sohu Real China
Kongzhong Tencent
Networks Mobile
Niche service providers includes companies like Tencent
which specialize in wireless instant messaging
which specialize in wireless instant messaging Hurray!
Hurray! China
China
Tom
Mobile operators also provide MVAS services Holding Unicom
• Relationship between mobile operators and MVAS China
Linktone Sina
firms is changing from cooperation to competition Telecom
Mobile operators are promoting their own services
Mobile operators are promoting their own services CDC Mobile
CDC M bil Sohu
S h
• Foreign players in MVAS space include Realnetworks
Digital Red Netease
• MVAS providers also face competition from other
Enorbus
Web sites that offers online content and online
Technologies
community services
community services
PacificNet
• MVAS players procure content through in‐house
development and alliances with international and MOABC
local branded content partners
MOBILE VALUE ADDED SERVICES – CHINA.PPT 25
26. Major Players (1/8)
Player Business Description
China Mobile • China Mobile is the largest mobile phone operator in China
• China Mobile operates not only basic mobile voice services but also value‐added services
such as data, IP telephone and multimedia
h d IP l h d l i di
• Its own VAS platform is Monternet
• China Mobile generated 27% of its revenue in 2008 through MVAS service
Financials:
• It recorded operating revenues of USD 60.4 bn and an operating profit of USD 21.9 bn in 2008
China Unicom • It was founded as a Government‐owned corporation, in July 1994, by the Ministry of
Information Industry
• China Unicom now operates GSM and WCDMA networks
China Unicom now operates GSM and WCDMA networks
• It operates the mobile music portal www.10155.com
• It is increasing direct cooperation with music content providers, and has already signed
contracts with Warner Music and Global Music International on content sourcing
• China Unicom Shanghai launched its own application store ‘WO Store’ in 2009
China Unicom Shanghai launched its own application store WO Store in 2009
Financials:
• It recorded revenues of USD 21.3 bn and net income of USD 4.9 bn in 2008
Note: This list is not exhaustive
MOBILE VALUE ADDED SERVICES – CHINA.PPT 26
27. Major Players (2/8)
Player Business Description
China Telecom • The company is headquartered in Beijing, China
• It started offering CDMA mobile voice services in the fourth quarter of 2008, following
acquisition of the CDMA Business from China Unicom
iii f h CDMA B i f Chi U i
• It currently offers mobile value‐added services such as mobile Color Ring Tones
• It is planning to provide colorful SMS, mobile newspaper, mobile multi‐media mailbox
services and other mobile value‐added services
• Chi T l
China Telecom has won CDMA 2000 license in 2009
h CDMA 2000 li i 2009
• It is planning to invest in product R&D and accelerate the launch of new products so as to
meet the market demand for the 3G service applications
Financials:
•IIt recorded operating revenues of USD 27.4 bn and an operating income of USD 754 mn in
d d i f USD 27 4 b d i i f USD 754 i
2008
CDC Mobile • Its products include SMS, WAP, MMS, J2ME, IVR and CRBT etc.
• CDC Mobile is the wholly owned subsidiary of China.com
CDC Mobile is the wholly owned subsidiary of China.com
• It develops Mobile Applications for Local Government Organizations in China
Note: This list is not exhaustive
MOBILE VALUE ADDED SERVICES – CHINA.PPT 27
28. Major Players (3/8)
Player Business Description
Digital Red • It provides a wide range of entertainment services
• It offers a variety of games via the mobile platforms
• It provides its products and services in over 19 companies, covering over 17 countries or
regions
Enorbus • It develops and distributes wireless games and other entertainment applications across a
Technologies range of platforms which include SMS, WAP over GPRS, BREW and Java
f l tf hi h i l d SMS WAP GPRS BREW d J
• Its portfolio is based on original content as well as joint development with content partners
• The company was founded in 2000 and is based in Beijing, China
Hurray! Holding
Hurray! Holding • Hurray! Holding is online distributor of music and music‐related products such as ringtones
Hurray! Holding is online distributor of music and music related products such as ringtones,
ring‐back‐tones, and true‐tones to mobile users in China
• The company primarily operates in China, Honk Kong and the US
• It is headquartered in Beijing and employs around 471 people
• It merged with web‐based online video portal Ku6 Holding Limited in Nov 2009
It merged with web based online video portal Ku6 Holding Limited in Nov 2009
Financials:
• It recorded revenues of USD 54 mn and an operating loss of USD 8.3 mn in the 2008
Note: This list is not exhaustive
MOBILE VALUE ADDED SERVICES – CHINA.PPT 28
29. Major Players (4/8)
Player Business Description
Kongzhong • The Company delivers wireless value‐added services to consumers in China through multiple
technology platforms which include WAP, MMS, JAVA TM , SMS, interactive voice response
and color ring‐back tone
and color ring back tone
• Headquartered in Beijing it operates 3 wireless Internet sites, Kong.net, Ko.cn & cn.NBA.com
• It also designs and operates mobile games, including mobile online games, downloadable
offline games and WAP games
• It acquired Shanghai Dacheng Network Technology a leading developer of three‐dimensional
It acquired Shanghai Dacheng Network Technology a leading developer of three dimensional
(3D) massively multi‐player online role‐playing games in December 2009
Financials:
• The company reported a total income of USD 97 mn and an operating loss of 24.7 mn in 2008
Linktone • It has offices in Beijing and Shanghai, it employs around 299 people
j g g , p y p p
• It provides entertainment‐oriented value‐added services to mobile phone users over the 2G
and 2.5G mobile telecommunications networks in China
• It is in the process of commercially launching 3G services for which it has received approval
from Chinese government in January 2009
• It provides ringtones, icons and screen savers, interactive SMS, MMS, WAP, IVRS, games etc.
• The company primarily operates in China and Hong Kong
Financials:
• It recorded net revenues of USD 64.5 mn and a net loss of USD 16.5 mn in 2008
Note: This list is not exhaustive
MOBILE VALUE ADDED SERVICES – CHINA.PPT 29
30. Major Players (5/8)
Player Business Description
Magus Soft • Magus Soft. developing and publishes mobile games and entertainment applications
• It operates in China, Japan, and Southern Asia
• It was founded in 2001 and is based in Beijing China
It was founded in 2001 and is based in Beijing, China
MTone Wireless • It is headquartered in Shanghai with major offices in Beijing, Guangzhou and Chengdu
• It commercialized the first wireless stock trading system and mobile information services with
China Telecom in 1998
• It developed mobile applications services using WAP for information browsing, MMS, IVRS
d l d bil li i i i f i f i b i S S
and a series of multi‐user games for Kjava enabled handsets
MOABC • It has its headquarters in Chaoyang District of Beijing
• It is planning to expand its business in Japan and Russia
• Established in 2005 as an independent WAP portal, it offered news, wireless email Momail,
networking and chatting, virtual community and wireless music services
Netease • It offers Chinese language content and services in terms of online games, Internet portal and
wireless value‐added services businesses
• The company runs its own Internet search engine, Yodao
• The company has eight subsidiaries across China and Hong Kong
Financials:
• It recorded revenues of USD 444.6 mn and a net profit of USD 230.2 mn in 2008
Note: This list is not exhaustive
MOBILE VALUE ADDED SERVICES – CHINA.PPT 30
31. Major Players (6/8)
Player Business Description
Pacificnet • PacificNet develops and provides gaming technology for the game operators; and provides
software outsourcing services and telecom value‐added services
•IIt operates in Macau, Hong Kong, China, Philippines, and the US
i M H K Chi Phili i d h US
• Its MVAS portfolio includes IVRS, SMS, MMS, WAP & games
Financials
• It recorded revenues of USD 19 mn and an operating loss of USD 16.4 mn in 2007
Real Networks • Real's services are currently available through 80 different mobile operators in 42 countries
worldwide, in China it has a partnership with China Unicom
• It launched its emoticon SMS service for China Unicom's mobile subscribers in 2008
• This new, advanced version of emoticon SMS — branded as xPressive MMS by China Unicom
incorporates graphics and photos into text messages, converting an SMS message into an
MMS message automatically, making plain SMS more fun and personalized
• It forged a partnership with Sichuan Telecom in February 2009, a subsidiary of China Telecom
for mobile Information Push Portal (MIPP) Service to Sichuan Telecom's subscribers
Th
The service allows subscribers to access news, entertainment, weather, sports & information on finance
i ll b ib t t t i t th t &i f ti fi
Note: This list is not exhaustive
MOBILE VALUE ADDED SERVICES – CHINA.PPT 31
32. Major Players (7/8)
Player Business Description
SINA Corporation • The company has its headquarters at Shanghai
• Its services are offered by Sina.com, Sina Mobile, Sina Community, Sina.net and Sina E‐
Commerce
• It also focuses on partnerships with the leading companies in providing mobile value added
services such as TCL, NEC, LG, Samsung, Sony Ericsson, Nokia and CNC
• It serves a range of key clients like IBM, Microsoft, Nike, Dell, Lenovo and BenQ and others
• I MVAS
Its MVAS services are accessible with various platforms such as SMS, MMS, WAP, IVR, CRBT
i ibl i h i l f h SMS MMS WAP IVR CRBT
and KJAVA/BREW
Financials:
• It reported a net revenue of USD 370 mn and a net income of USD 80.6 mn in 2008
Sohu • It is based in Beijing
• Its wireless segment operates as a service provider to China's leading mobile network
operators, offering a range of wireless products focused on entertainment, information and
communications
• Its products are made available to end users via a broad choice of technologies, such as SMS,
d d l bl d b d h f h l h
WAP, MMS, RBT and IVR services
Financials:
• It reported revenues of USD 429.1 mn and an operating profit was USD 163.8 mn in 2008
Note: This list is not exhaustive
MOBILE VALUE ADDED SERVICES – CHINA.PPT 32
33. Major Players (8/8)
Player Business Description
Tencent Holdings • Tencent is headquartered at Shenzhen
• Its research institutes are located in Beijing, Shanghai, and Shenzhen
• Tencent’s also operates Internet portals such as QQ, QQ.com, QQ Games, and PaiPai.com
• Its IM platform, under QQ brand, allows users to communicate in real‐time across Internet,
and mobile and fixed line telecommunications networks using various terminal devices
Financials:
•IIt reported revenues of USD 1 bn and a profit of USD 412.3 mn in 2008
d f USD 1 b d fi f USD 412 3 i 2008
Tom Online • Tom Online, a subsidiary of Tom Group, is a wireless Internet services provider
• It provides MMS, SMS and online advertising services
• It is headquartered in Beijing
• Tom Online provides messaging services, downloadable news headlines, sports information,
games, and ring tones through its wireless operations
• Users can pay for services through a monthly subscription fee or on a per message basis
Financials:
• The group recorded revenues of USD 350.4 mn and a net loss of USD 179.1 mn in 2008
Note: This list is not exhaustive
MOBILE VALUE ADDED SERVICES – CHINA.PPT 33
35. Key Developments
Date Development
21‐Dec‐2009 Sohu.com Inc. and its subsidiary ChinaRen are introducing micro‐b logging service, a new kind of social
networking service
09‐Dec‐2009
09 D 2009 China Telecom launched an IM service, Tianyi Live, in cooperation with MSN. It is designed to transmit
Chi l l h d i i i i i i ih S i d i d i
SMS between different networks and offline messages
30‐Nov‐2009 Three investment firms, including Sequoia Capital, plan on investing USD 180 mn in Sina Corp
02‐July ‐2008 Hurray! announced its entry in the entertainment industry by introducing its new artist management
y y y y g g
service, which aims at attracting several Chinese well‐known artists
17‐May‐2008 Sina Corporation launched its English news site in order to provide timely news related to China as well
as other content services in English
06 Feb 2008
06‐Feb‐2008 PacificNet has forged a Strategic Alliance Agreement with Mobile Game Provider Spin3
PacificNet has forged a Strategic Alliance Agreement with Mobile Game Provider Spin3
MOBILE VALUE ADDED SERVICES – CHINA.PPT 35
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MOBILE VALUE ADDED SERVICES – CHINA.PPT 36