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China's Mobile VAS Services Portal Market
Asia Pacific Research Group (APRG), Nov 2005, Pages: 38
As the mobile market soared in China over the last 5 years, the key service being marketed was voice and cheap handsets. However SMS MMS data messaging based applications have now become very popular with Chinese cellular subscribers. These services are particularly appealing to teenagers and young professionals, and have driven mobile network operators to adjust their offerings to meet the demand for mobile data services.
Wireless SMS Portals in China - Until recently, China's carriers have operated in a certain amount of isolation. However, as SMS content demand continues, China Mobile and China Unicom have adjusted to share the market with content providers and Internet portal operators, companies they previously had not considered competitors, much less possible partners. This research publication describes the current environment and outlook for Mobile Content in the China market.
MMS & SMS Spam from the Portals Will Not be Tolerated - Sohu.com's wireless service was suspended by China Mobile August 14, 2004. The 12-month suspension was for the cardinal sin of sending unsolicited bulk (MMS) to its users in China. Apparently, the suspension came about after Sohu sent 1,400 unsolicited SMS advertisements for a 'I Want Photo' picture-messaging service. According to reports, Sohu users 'have been complaining for at least 18 months that the company was sending messages without their authorization - and charging the subscribers for those messages'.
Key Messages in this Publication
- Content providers and mobile operators in China are adopting new business strategies, technologies and new methods of partnering - to enable services that customers want and are willing to pay for.
- There have been significant and progressive efforts by mainland China Internet portal operators such as NetEase, Sohu and Sina to branch out into the mobile content business through SMS technology. They have all seen revenues decrease in 2004 with their SMS based content services, and are struggling to find the right success formula for SMS VAS.
- In the past eighteen months, China has seen tremendous growth in the usage of Short Messaging Service (SMS). The growth has been driven by an explosive increase in the number of mobile phone subscribers.
- There are many pitfalls and hurdles to establishing content based portals in China, we outline the key risks as well as opportunities.
** To get Quarterly updates of this report please click on Enquiries **
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