Professional Documents
Culture Documents
January2010
ExecutiveSummary
MVASmarketinChinaisvaluedatUSD18.2bnin2008;expectedtoreachUSD34.5bnby2011 Atpresent,80%ofthemobileconsumersareusingmobilevalueaddedservices SMSandCallerRingBackTones(CRBT)arethetwomostpopularMVASservicesinChina MVASprovidersrelyprimarilyonmobileoperatorstoprovidebillingandcollectionservices
Market
Drivers:
Challenges:
MVASprovidersarehighlydependent ontelecomoperators on telecom operators CompetitionfromfreeWAPsites Billingandtransmissionfailures
MarketcomprisesoffourtypesofMVASplayers
PureMVASPlayers InternetPortalOperators Sina Tom TelecomOperators ChinaMobile ChinaUnicom NicheServiceProvider Tencent
Competition C titi
g g Kongzhong Hurray!Holding
MVASfirmsalsofacecompetitionfromfreeWAPportals Relationship between mobile operators and MVAS firms is changing from cooperation to RelationshipbetweenmobileoperatorsandMVASfirmsischangingfromcooperationto competition
MOBILEVALUEADDEDSERVICES CHINA.PPT
Introduction Introduction ValueChainandServices MarketEntryProcedure Market Entry Procedure GovernmentRegulations MarketOverview Drivers&Challenges Competition KeyDevelopments y p
MOBILEVALUEADDEDSERVICES CHINA.PPT
TheChinesemobilemarkethastheworldslargest subscriberbaseanditisgrowingat18%annually
MobileMarketinChina
TheChinesemarkethasthreemobile operatorswithChinaMobiledominating:
ChinaMobile ChinaUnicom ChinaTelecom
MobileSubscribers
mn
800 600 400 200 0 461
+18%
641 548
Total Revenues: Chinas three main telecom TotalRevenues:China sthreemaintelecom firmsattainedacombinedrevenueofUSD103 bnin2008 TotalSubscribers: 982.2mn(2008)
Mobile subscribers account for 65% of total Mobilesubscribersaccountfor65%oftotal subscriberbase
2006
2007
2008
WirelessOperatorsMarketShare(2008)
ChinaTelecom ChinaUnicom 21.5% 4.5%
MOBILEVALUEADDEDSERVICES CHINA.PPT
Introduction Introduction ValueChainandServices MarketEntryProcedure Market Entry Procedure GovernmentRegulations MarketOverview Drivers&Challenges Competition KeyDevelopments y p
MOBILEVALUEADDEDSERVICES CHINA.PPT
Thevaluechainincludesoperators,contentdevelopers,and serviceproviderswiththelattergettingthebulkofrevenue
Content Content
Content
Content Developer
Service Provider
Payment
Payment
Payment
Users/ Buyers
MOBILEVALUEADDEDSERVICES CHINA.PPT
ServicesOffered
PopularMVASServices
PopularServicesbyMobileGeneration
2G
2.5G 2.5 G
3G 3G
SMS
IVRS
CRBT
WAP
MMS
Mobile TV
Video on on Demand
MOBILEVALUEADDEDSERVICES CHINA.PPT
Introduction Introduction ValueChainandServices MarketEntryProcedure Market Entry Procedure GovernmentRegulations MarketOverview Drivers&Challenges Competition KeyDevelopments y p
MOBILEVALUEADDEDSERVICES CHINA.PPT
TheentryprocedureforofferingMVASisconsideredtobe lengthyanddifficult
FindChineseVASPartner
EstablishForeigninvested telecomenterprise(FITE)
Maximum50%shareofforeigncompany
No
Min.registeredcapital USD146,430
Yes
ApplyforVAS licensewith Ministryof Information Industry(MII)
Min.registeredcapital USD1,464,300
ObtainVASlicense
ProvideMVAS Services
MOBILEVALUEADDEDSERVICES CHINA.PPT
Governmentrequirementsvarydependingonthestageor statusofanentityforbecomingaMVASprovider
StagesinMarketEntry
MVASprovidersneedaminimumregisteredcapitalofUSD1.46mnforprovidingservicesacrossprovinces MinimumregisteredcapitalisUSD146,430forprovidingMVASservicesinoneprovince,anautonomousregion, oramunicipality Theultimatecapitalcontributionratiooftheforeigninvestorsinaforeignfundedtelecommunications enterpriseprovidingvalueaddedtelecommunicationsservicescannotexceed50%
EstablishFITE
MajorChineseinvestorisdefinedasinvestorhavingminimum30%shareamongstallChineseinvestors
M j Chi MajorChineseinvestormustpossessappropriatefundsandspecializedstaffaccordingtorequirementsstipulatedbyMII i t t i t f d d i li d t ff di t i t ti l t d b MII
ProjectproposalanddocumentshavetobesubmittedtoManagementDepartmentofInformationIndustry TheapplicantarerequiredtosubmitcontractsusedtoestablishaFITEtoMinistryofCommerce LicensehastobeacquiredfromManagementDepartmentofInformationIndustry Enterprise registering procedure has to be completed in Bureau of Industry &Business Administration EnterpriseregisteringprocedurehastobecompletedinBureauofIndustry&BusinessAdministration
MVASproviderhavetoclearconformancetestsfrommobileoperator Finally,MVASprovidersnegotiatecontractswithoperatorsforserviceprovision
MOBILEVALUEADDEDSERVICES CHINA.PPT
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Introduction Introduction ValueChainandServices MarketEntryProcedure Market Entry Procedure GovernmentRegulations MarketOverview Drivers&Challenges Competition KeyDevelopments y p
MOBILEVALUEADDEDSERVICES CHINA.PPT
11
MVASindustryishighlyregulatedinChina
RegulationsfortheAdministrationofForeignInvestedTelecommunicationsEnterprises
A foreign entity is prohibited from owning more than 50% of the total equity in any valueadded 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
ShortMessageServices Sh S i
Government Regulations
PricingandBillingofMobileInformationServices
The pricing and billing of MVAS must be accurate clear and fair ThepricingandbillingofMVASmustbeaccurate,clearandfair Mobilevalueaddedserviceprovidercannotchargeacustomerunlessthecustomerrespondstotwo customerrequests Serviceprovidershavetomaintaindetailedinvoicesforeachcustomerformorethanfivemonths Telecomoperatorsarerequiredtofirstdealwithcustomercomplaints,requestsforrefundsandrelated matters
MOBILEVALUEADDEDSERVICES CHINA.PPT
12
MVASfirmsneedtoobtainvariousapprovalsforproviding internetpublications,games&audiovisualservices
RegulationforInternetPublication
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
Government Regulations
RegulationforInternetAudiovisualProgramServices
StateAdministrationofRadio,Film,andTelevision(SARFT)andtheMinistryofIndustryandInformation TechnologyjointlyissuedtheRulesfortheadministrationofInternetaudiovisualprogramserviceswhich cameintoeffectasofJanuary31,2008 Therulesapplytotheprovisionofaudiovisualprogramserviceviainternetincludingmobileinternet ProvidersofinternetaudiovisualprogramservicesarerequiredtoobtainanInternetAudiovisualLicenseor completecertainregistrationprocedurespriortoprovidingAudiovisualProgramServices Serviceproviderswhowereengagedininternetaudiovisualprogramservicespriortothepromulgationof therulesandwhohavenotviolatedanyotherlawsorregulationsareeligibletoregistertheirbusinessand th l d h h t i l t d th l l ti li ibl t i t th i b i d continuetheiroperations
MOBILEVALUEADDEDSERVICES CHINA.PPT
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Introduction Introduction ValueChainandServices MarketEntryProcedure Market Entry Procedure GovernmentRegulations MarketOverview Drivers&Challenges Competition KeyDevelopments y p
MOBILEVALUEADDEDSERVICES CHINA.PPT
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MVASisgrowingat29%annuallyasoperatorsdiversify revenuesfromnonvoiceservicestooffsetdecliningARPU
MarketOverview
MobileoperatorsinChinahavebeenaggressively promotingMVAStooffsetthedeclineinAverage RevenuePerUser(ARPU),whichispredominantly R P U (ARPU) hi h i d i l voicebasedrevenue Atpresent,80%ofmobileconsumersuseMVAS SMSandCallerRingBackTones(CRBT)arethetwo mostpopularMVASServicesinChina most popular MVAS Services in China %Revenue2008 SMS CRBT ChinaMobile 12.21% 3.5% 3 5% ChinaUnicom 10% 3.8% 3 8%
MarketSizeandGrowth
USD bn
40 30 20 10 0 9.6 34.5
+29%
18.2
2006
2008
2011e
VASsShareofTotalRevenue
China Telecom China Unicom China Mobile 25.7%
27.5%
AdvancedMVASservicesbasedonWAP/ MMS/Java/BREWplatformsarealsobecoming popular Currently Chinas mobile operators deliver their Currently,China smobileoperatorsdelivertheir servicesthrough2&2.5Gwirelessstandards
MVASmarketinChinaisevolvingfrom2Gservicesto2.5G andwillcontinuewith3Gstandards
9.0%
10.9% 0.8%
MVASprovidersrelyprimarilyonmobileoperatorsto providebillingandcollectionservices
n/a 2007
2008
MOBILEVALUEADDEDSERVICES CHINA.PPT
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Introduction Introduction ValueChainandServices MarketEntryProcedure Market Entry Procedure GovernmentRegulations MarketOverview Drivers&Challenges Competition KeyDevelopments y p
MOBILEVALUEADDEDSERVICES CHINA.PPT
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Drivers Summary
IncreasingMobilePenetration RisingIncomelevels GrowingpopularityofMobile Entertainment
DemandSide
Drivers
SupplySide pp y
DecliningARPU
Introductionof3G
MOBILEVALUEADDEDSERVICES CHINA.PPT
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Increasingmobilepenetrationandincomelevelsaredriving growthinChineseMVASindustry
IncreasingMobilePenetration
IncreasingmobilepenetrationhashelpedinthegrowthofMVASindustryinChina OverhalfofChinaspopulationnowhasmobilephones About80%ofChinasmobilephoneusersutilizemobilevalueaddedservices MobilePenetration %
60 40 20 0 35.0 41.6 54.3
Impact
2006
2007
2008
RisingIncomelevels
ChinahasexperiencedrapidgrowthinpercapitaGDPsinceitbeganreformsin1979 Therapidriseinlivingstandardshasthusincreaseddemandsfortelecomservicesinboth quantityandquality GDPGrowthRate% %
20 10 0 2002 2003 2004 2005 2006 2007 2008 9.1% 10.0% 10.1% 9.9% 11.1% 11.4% 9.0%
Impact
MOBILEVALUEADDEDSERVICES CHINA.PPT
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Growingpopularityofmobileentertainmentanddeclining ARPUaredrivinggrowthinthissector
GrowingpopularityofMobileEntertainment
Newmediaservicessuchasmobilemusic,games,andmobileTVarefastgainingpopularityin ChineseMVASmarket ChinaMobilelaunchedMusicClubinJuly2006incooperationwithserviceproviders,handset vendorscontentproviderswhichincludeEMI,Warner,SonyBMGandUniversal
Mobilemusicclubtoofferonestopservicesincludingmusicdownloadsandsharing
Impact
ChinaUnicomisincreasingdirectcooperationwithmusiccontentproviders,andhasalready signedcontractswithWarnerMusicandGlobalMusicInternationaloncontentsourcing signed contracts with Warner Music and Global Music International on content sourcing
DecliningAverageRevenuePerUser(ARPU)
Falling ARPU in telecom sector has made it imperative for telecom operators to search for other FallingARPUintelecomsectorhasmadeitimperativefortelecomoperatorstosearchforother lucrativerevenuesourcessuchasmobileVAS MonthlyARPUChinaMobile
USD
20 10 0 13.2
Impact
-6.1%
12.2 8.5
2006
2008
2013
MOBILEVALUEADDEDSERVICES CHINA.PPT
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Introductionof3Gservicesisapositivedevelopmentfor thissector
Introductionof3G
China'stelecomindustryenteredthe3GerainJanuary2009
ChinaMobile,haswonalicenseforTDSCDMA,thedomesticallydeveloped3GstandardwhileChinaTelecom andChinaUnicom,receivedlicensesfortheUSdevelopedCDMA2000andEurope'sWCDMA,respectively d Chi U i i d li f th US d l d CDMA2000 d E ' WCDMA ti l
Impact
3Ghighspeednetworksbeingcapableofhandlingfasterdatadownloads,allowinghandsetusers tomakevideocallsandwatchTVprograms Anonlinesurveyrevealedthat65%ofrespondentswouldchoose3Gnetworkservice 3G era will accelerate the growth of MVAS because the substantial improvements in data 3GerawillacceleratethegrowthofMVAS,becausethesubstantialimprovementsindata transferratesofthe3Gnetworkwouldencouragemoreapplicationsandservicestobe developed
MOBILEVALUEADDEDSERVICES CHINA.PPT
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Challenges Summary
MVASprovidersarehighly dependentontelecom operators
Challenges g
CompetitionfromfreeWAP sites it
BillingandTransmissionFailures g
MOBILEVALUEADDEDSERVICES CHINA.PPT
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Dependencyontelecomoperatorsandcompetitionfrom freeWAPwebsitesimpedeindustrygrowth
MVASprovidersarehighlydependentontelecomoperators
MVASprovidershavearrangementswithwirelessoperators,whoareentitledtoaserviceand transmissionfeeforthetransmissionofcontentaswellasbillingandcollectionservices MVASprovidersrelyontheoperatorstomaintainaccuraterecordsofthefeespaidbyusers MVASprovidersaredependentonoperatorsforprominentlypositioningtheirservicesonmenuof servicesforeachmajorservicecategory MVASprovidersgenerallypaymobileoperatorsupto15%ofthefeestheygeneratefromproviding servicestousersthroughmobileoperatorsnetwork i t th h bil t t k
ChinaMobileappliesa5050arrangementforsomeservicessuchasdownloadsofmobilevideoclips MobileoperatorsdeductanettransmissionchargefromMVASprovidersfees
Impact
CompetitionfromfreeWAPsites
MVASprovidersfacecompetitionfromfreeWAPsitesinthemobileinternetmarket Thereareover9000freeWAPwebsitesinChina,mostofthemadoptfreebusinesspatterns similartothatofwebbasedsites FreeWAPsitesaccountforover90%ofdatatrafficonChinaMobilesnetwork
Impact
MOBILEVALUEADDEDSERVICES CHINA.PPT
22
Billingandtransmissionfailureshamperindustrygrowth
BillingandTransmissionFailures
MVASserviceprovidersdonotcollectfeesfortheirservicesfromthetelecomoperatorsina numberofcircumstanceswhichinclude:
Deliveryofservicetoacustomerfailsonaccountofphonebeingturnedoffforanextendedperiod Customersprepaidphonecardhasrunoutofvalue Customerhasceasedtobeacustomeroftheapplicablemobileoperator TechnicalproblemswithnetworkoftelecomoperatorthuspreventingthedeliveryofMVASservices TechnicalproblemswithMVASprovider Technical problems with MVAS provider Customerrefusingtopayduetoqualityorotherproblems
Impact
Telecomoperatorsmonthlystatementstoserviceproviders,donotcontaininformationabout billingandtransmissionfailures
ThismakesitdifficultforMVASproviderstoeffectivelyanalyzetheirfinancialperformance Thus,MVASprovidersattimesoverpaycontentproviders
MOBILEVALUEADDEDSERVICES CHINA.PPT
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Introduction Introduction ValueChainandServices MarketEntryProcedure Market Entry Procedure GovernmentRegulations MarketOverview Drivers&Challenges Competition KeyDevelopments y p
MOBILEVALUEADDEDSERVICES CHINA.PPT
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MVASmarketcomprisesoffourtypesofplayers
CompetitionOverview
MarketcomprisesoffourtypesofMVASplayers:
PureMVASincludingcompanieslikeLinktone,KongZhong, MToneWireless Internetportaloperatorswhoalsoprovidemobilevalue addedserviceslikeTomGroup,SinacorporationandSohu NicheserviceprovidersincludescompanieslikeTencent whichspecializeinwirelessinstantmessaging which specialize in wireless instant messaging MobileoperatorsalsoprovideMVASservices
KeyParticipants
PureMVAS Players Pl Kongzhong Hurray! Hurray! Holding Linktone CDCMobile CDC M bil DigitalRed Enorbus Technologies PacificNet MOABC Internet Portal Operators Real Networks Tom Sina Sohu S h Netease Niche Service Provider Tencent Telecom operators t China Mobile China China Unicom China Telecom
RelationshipbetweenmobileoperatorsandMVAS firmsischangingfromcooperationtocompetition
Mobile operators are promoting their own services Mobileoperatorsarepromotingtheirownservices
MOBILEVALUEADDEDSERVICES CHINA.PPT
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MajorPlayers(1/8)
Player BusinessDescription ChinaMobileisthelargestmobilephoneoperatorinChina ChinaMobileoperatesnotonlybasicmobilevoiceservicesbutalsovalueaddedservices suchasdata,IPtelephoneandmultimedia h d IP l h d l i di ItsownVASplatformisMonternet ChinaMobilegenerated27%ofitsrevenuein2008throughMVASservice Financials: ItrecordedoperatingrevenuesofUSD60.4bnandanoperatingprofitofUSD21.9bnin2008 ItwasfoundedasaGovernmentownedcorporation,inJuly1994,bytheMinistryof InformationIndustry China Unicom now operates GSM and WCDMA networks ChinaUnicomnowoperatesGSMandWCDMAnetworks Itoperatesthemobilemusicportalwww.10155.com Itisincreasingdirectcooperationwithmusiccontentproviders,andhasalreadysigned contractswithWarnerMusicandGlobalMusicInternationaloncontentsourcing China Unicom Shanghai launched its own application store WO Storein2009 ChinaUnicomShanghailauncheditsownapplicationstore WOStore in 2009 Financials: ItrecordedrevenuesofUSD21.3bnandnetincomeofUSD4.9bnin2008
ChinaMobile
ChinaUnicom
26
MajorPlayers(2/8)
Player BusinessDescription ThecompanyisheadquarteredinBeijing,China ItstartedofferingCDMAmobilevoiceservicesinthefourthquarterof2008,following acquisitionoftheCDMABusinessfromChinaUnicom iii f h CDMA B i f Chi U i ItcurrentlyoffersmobilevalueaddedservicessuchasmobileColorRingTones ItisplanningtoprovidecolorfulSMS,mobilenewspaper,mobilemultimediamailbox servicesandothermobilevalueaddedservices Chi T l ChinaTelecomhaswonCDMA2000licensein2009 h CDMA 2000 li i 2009 ItisplanningtoinvestinproductR&Dandacceleratethelaunchofnewproductssoasto meetthemarketdemandforthe3Gserviceapplications Financials: I ItrecordedoperatingrevenuesofUSD27.4bnandanoperatingincomeofUSD754mnin d d i f USD 27 4 b d i i f USD 754 i 2008 ItsproductsincludeSMS,WAP,MMS,J2ME,IVRandCRBTetc. CDCMobileisthewhollyownedsubsidiaryofChina.com CDC Mobile is the wholly owned subsidiary of China.com ItdevelopsMobileApplicationsforLocalGovernmentOrganizationsinChina
ChinaTelecom
CDCMobile
27
MajorPlayers(3/8)
Player BusinessDescription Itprovidesawiderangeofentertainmentservices Itoffersavarietyofgamesviathemobileplatforms Itprovidesitsproductsandservicesinover19companies,coveringover17countriesor regions Itdevelopsanddistributeswirelessgamesandotherentertainmentapplicationsacrossa rangeofplatformswhichincludeSMS,WAPoverGPRS,BREWandJava f l tf hi h i l d SMS WAP GPRS BREW d J Itsportfolioisbasedonoriginalcontentaswellasjointdevelopmentwithcontentpartners Thecompanywasfoundedin2000andisbasedinBeijing,China Hurray! Holding is online distributor of music and musicrelated products such as ringtones Hurray!Holdingisonlinedistributorofmusicandmusic relatedproductssuchasringtones, ringbacktones,andtruetonestomobileusersinChina ThecompanyprimarilyoperatesinChina,HonkKongandtheUS ItisheadquarteredinBeijingandemploysaround471people It merged with webbased online video portal Ku6 Holding Limited in Nov 2009 Itmergedwithweb basedonlinevideoportalKu6HoldingLimitedinNov2009 Financials: ItrecordedrevenuesofUSD54mnandanoperatinglossofUSD8.3mninthe2008
DigitalRed
Enorbus Technologies
28
MajorPlayers(4/8)
Player BusinessDescription TheCompanydeliverswirelessvalueaddedservicestoconsumersinChinathroughmultiple technologyplatformswhichincludeWAP,MMS,JAVATM,SMS,interactivevoiceresponse andcolorringbacktone and color ring back tone HeadquarteredinBeijingitoperates3wirelessInternetsites,Kong.net,Ko.cn&cn.NBA.com Italsodesignsandoperatesmobilegames,includingmobileonlinegames,downloadable offlinegamesandWAPgames ItacquiredShanghaiDachengNetworkTechnologyaleadingdeveloperofthree dimensional It acquired Shanghai Dacheng Network Technology a leading developer of threedimensional (3D)massivelymultiplayeronlineroleplayinggamesinDecember2009 Financials: ThecompanyreportedatotalincomeofUSD97mnandanoperatinglossof24.7mnin2008 IthasofficesinBeijingandShanghai,itemploysaround299people j g g , p y p p Itprovidesentertainmentorientedvalueaddedservicestomobilephoneusersoverthe2G and2.5GmobiletelecommunicationsnetworksinChina Itisintheprocessofcommerciallylaunching3Gservicesforwhichithasreceivedapproval fromChinesegovernmentinJanuary2009 Itprovidesringtones,iconsandscreensavers,interactiveSMS,MMS,WAP,IVRS,gamesetc. ThecompanyprimarilyoperatesinChinaandHongKong Financials: ItrecordednetrevenuesofUSD64.5mn andanetlossofUSD16.5mn in2008
Kongzhong
Linktone
29
MajorPlayers(5/8)
Player BusinessDescription MagusSoft.developingandpublishesmobilegamesandentertainmentapplications ItoperatesinChina,Japan,andSouthernAsia It was founded in 2001 and is based in Beijing China Itwasfoundedin2001andisbasedinBeijing,China ItisheadquarteredinShanghaiwithmajorofficesinBeijing,GuangzhouandChengdu Itcommercializedthefirstwirelessstocktradingsystemandmobileinformationserviceswith ChinaTelecomin1998 ItdevelopedmobileapplicationsservicesusingWAPforinformationbrowsing,MMS,IVRS d l d bil li i i i f i f i b i S S andaseriesofmultiusergamesforKjavaenabledhandsets IthasitsheadquartersinChaoyangDistrictofBeijing ItisplanningtoexpanditsbusinessinJapanandRussia Establishedin2005asanindependentWAPportal,itofferednews,wirelessemailMomail, networkingandchatting,virtualcommunityandwirelessmusicservices ItoffersChineselanguagecontentandservicesintermsofonlinegames,Internetportaland wirelessvalueaddedservicesbusinesses ThecompanyrunsitsownInternetsearchengine,Yodao ThecompanyhaseightsubsidiariesacrossChinaandHongKong Financials: ItrecordedrevenuesofUSD444.6mnandanetprofitofUSD230.2mnin2008
MagusSoft
MToneWireless
MOABC
Netease
30
MajorPlayers(6/8)
Player BusinessDescription PacificNetdevelopsandprovidesgamingtechnologyforthegameoperators;andprovides softwareoutsourcingservicesandtelecomvalueaddedservices I ItoperatesinMacau,HongKong,China,Philippines,andtheUS i M H K Chi Phili i d h US ItsMVASportfolioincludesIVRS,SMS,MMS,WAP&games Financials ItrecordedrevenuesofUSD19mnandanoperatinglossofUSD16.4mnin2007 Real'sservicesarecurrentlyavailablethrough80differentmobileoperatorsin42countries worldwide,inChinaithasapartnershipwithChinaUnicom ItlauncheditsemoticonSMSserviceforChinaUnicom'smobilesubscribersin2008 Thisnew,advancedversionofemoticonSMS brandedasxPressiveMMSbyChinaUnicom incorporatesgraphicsandphotosintotextmessages,convertinganSMSmessageintoan MMSmessageautomatically,makingplainSMSmorefunandpersonalized ItforgedapartnershipwithSichuanTelecominFebruary2009,asubsidiaryofChinaTelecom formobileInformationPushPortal(MIPP)ServicetoSichuanTelecom'ssubscribers
Th Theserviceallowssubscriberstoaccessnews,entertainment,weather,sports&informationonfinance i ll b ib t t t i t th t &i f ti fi
Pacificnet
RealNetworks
31
MajorPlayers(7/8)
Player BusinessDescription ThecompanyhasitsheadquartersatShanghai ItsservicesareofferedbySina.com,SinaMobile,SinaCommunity,Sina.netandSinaE Commerce Italsofocusesonpartnershipswiththeleadingcompaniesinprovidingmobilevalueadded servicessuchasTCL,NEC,LG,Samsung,SonyEricsson,NokiaandCNC ItservesarangeofkeyclientslikeIBM,Microsoft,Nike,Dell,LenovoandBenQandothers I MVAS ItsMVASservicesareaccessiblewithvariousplatformssuchasSMS,MMS,WAP,IVR,CRBT i ibl i h i l f h SMS MMS WAP IVR CRBT andKJAVA/BREW Financials: ItreportedanetrevenueofUSD370mnandanetincomeofUSD80.6mnin2008 ItisbasedinBeijing ItswirelesssegmentoperatesasaserviceprovidertoChina'sleadingmobilenetwork operators,offeringarangeofwirelessproductsfocusedonentertainment,informationand communications Itsproductsaremadeavailabletoendusersviaabroadchoiceoftechnologies,suchasSMS, d d l bl d b d h f h l h WAP,MMS,RBTandIVRservices Financials: ItreportedrevenuesofUSD429.1mnandanoperatingprofitwasUSD163.8mnin2008
SINACorporation
Sohu
32
MajorPlayers(8/8)
Player BusinessDescription TencentisheadquarteredatShenzhen ItsresearchinstitutesarelocatedinBeijing,Shanghai,andShenzhen TencentsalsooperatesInternetportalssuchasQQ,QQ.com,QQGames,andPaiPai.com ItsIMplatform,underQQbrand,allowsuserstocommunicateinrealtimeacrossInternet, andmobileandfixedlinetelecommunicationsnetworksusingvariousterminaldevices Financials: I ItreportedrevenuesofUSD1bnandaprofitofUSD412.3mnin2008 d f USD 1 b d fi f USD 412 3 i 2008 TomOnline,asubsidiaryofTomGroup,isawirelessInternetservicesprovider ItprovidesMMS,SMSandonlineadvertisingservices ItisheadquarteredinBeijing TomOnlineprovidesmessagingservices,downloadablenewsheadlines,sportsinformation, games,andringtonesthroughitswirelessoperations Userscanpayforservicesthroughamonthlysubscriptionfeeoronapermessagebasis Financials: ThegrouprecordedrevenuesofUSD350.4mnandanetlossofUSD179.1mnin2008
TencentHoldings
TomOnline
33
Introduction Introduction ValueChainandServices MarketEntryProcedure Market Entry Procedure GovernmentRegulations MarketOverview Drivers&Challenges Competition KeyDevelopments y p
MOBILEVALUEADDEDSERVICES CHINA.PPT
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KeyDevelopments
Date 21Dec2009 09Dec2009 09 D 2009 30Nov2009 02July2008 17May2008 06 Feb 2008 06Feb2008 Development Sohu.comInc.anditssubsidiaryChinaRenareintroducingmicrobloggingservice,anewkindofsocial networkingservice ChinaTelecomlaunchedanIMservice,TianyiLive,incooperationwithMSN.Itisdesignedtotransmit Chi l l h d i i i i i i ih S i d i d i SMSbetweendifferentnetworksandofflinemessages Threeinvestmentfirms,includingSequoiaCapital,planoninvestingUSD180mninSinaCorp Hurray!announceditsentryintheentertainmentindustrybyintroducingitsnewartistmanagement y y y y g g service,whichaimsatattractingseveralChinesewellknownartists SinaCorporationlauncheditsEnglishnewssiteinordertoprovidetimelynewsrelatedtoChinaaswell asothercontentservicesinEnglish PacificNethasforgedaStrategicAllianceAgreementwithMobileGameProviderSpin3 PacificNet has forged a Strategic Alliance Agreement with Mobile Game Provider Spin3
MOBILEVALUEADDEDSERVICES CHINA.PPT
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