Best Voip Service Providers Chart
		$9.95 - $16.58
		$19.99 - $39.99
		$9.95 - $15.95

Analysys International Says Mobile Carriers' New Policy has Less Than a 10% Impact on the Whole Short-term Situation in China

Analysys International, a leading Internet based provider of business information about technology, media and telecom (TMT) industries in China, says China Mobile and China Unicom's new polices on mobile value-added service subscription will have a more positive impact than negative impact on the community. In the short term, the new policies will have less than a 10% impact on China's whole situation; and in a long-term point of view, it is the booster that will improve industrial competency.

News Background

China Mobile recently notified value-added service providers (SP) of its policy changes for all mobile value added service (MVAS) subscriptions on its Monternet platform, which include an extended trial period, double reminder and unified unsubscription channels.

In April, China Unicom formally launched its new SP contract in order to further regulate and optimize the telecom market. The new contract classified 53 breaches of contract.

Quick Analysis

1. Analysys International says a more regulated industry environment is

necessary to the mobile VAS market in China, and is beneficial to the

long-term development of the mobile value-added service industry.

By the first quarter of 2006, China's mobile telecommunications subscribers reached 410 million. Total mobile VAS market size (SMS excluded) reached RMB 6.23 billion in the first quarter. Although the industry is in a rapid growth phase in general, there are many unregulated activities in the market. Therefore, appropriate industrial regulations can control irregular operations in a certain degree and build a healthy development environment for the market.

2. China Mobile's new policy will not limit the rapid development of the

mobile VAS market but will drive SPs to improve product and service

quality.

Users are the key resource that operators compete for. When 3G licenses are issued, the competition will get heavier. Therefore, mobile carriers will inevitably establish related measures to regulate business flow to improve user satisfaction and to protect current subscriber base. These measures are made to improve user experience, which will bring much more revenue in the future.

As a listed company, China Mobile faces pressure both from shareholders and the market. Considering the development of its mobile VAS business, the company will implement its regulation plan step-by-step, which will guarantee smooth transition and will not greatly impact its financial performance.

China Mobile's services, which are affected by the new policy, account for less than 20% of the big board. With the rapid growth of other services and the smooth transition of business adjustment, impact on the total VAS revenue will be very small. China Unicom's new contract will pose challenges to small SPs but will not impact the total revenue either.

3. The new policies have higher requirements to SPs, which will speed up

the rule of survival of the fittest. Those SPs who lack core

competency will be forced out, while leading SPs will further expand

market share and market influences.

According to Analysys International, the top 10 SPs have accounted for 56% of the total market in China; about 30% in the revenue structure of over 70% small and medium SPs come from gray revenue. As regulatory policies gradually strengthen, SPs' gray revenue will be constantly cut down. Small SPs will be forced out; and some big SPs will become stronger.

About Analysys International

Analysys International is the leading Internet based provider of business information about Technology, Media and Telecom industry in China. We provide data, information and advice to 50,000 clients worldwide representing 1,500 distinct organizations, deliver over 150 consulting engagements a year, and hold more than 20 events that draw in over 8,000 attendees. Our clients include executives from companies as technology vendors, vertical information technology users, as well as professionals from professional service companies, the investment community and government agencies. Our mission is simple and clear: we help our clients make better business decisions. For more information, please visit our web site at http://english.analysys.com.cn .

For more information, please contact:

Jessica Wang

Overseas Media Manager

Analysys International

Tel: +86-10-6466-6565 x394

Fax: +86-10-6466-7103

Email: jessica_wang@analysys.com.cn

Author:  

Email:    

Topic:    

Content:

Related Telecom Articles

• CDG Commends SK Telecom on Billion-Dollar Investment In China Unicom
  20 July 2006



• Infineon Multimedia Platform Selected by LGE for New EDGE Mobile Phones
  18 July 2006



• OpenClovis Helps Telecom Equipment Designers Build Next-Generation Carrier- Grade, AdvancedTCA- and COTS-based Systems
  17 July 2006



• Lockheed Martin Selects Northrop Grumman Inertial Unit for Mobile User Objective System Satellite
  17 July 2006



• In Early 2006 Mobile Penetration Reached 78% in South Korea
  14 July 2006



• Video surveillance on your mobile phone -- 3rdeye has just been launched!
  14 July 2006



• International Conference on Mobile Virtual Networks - ModelCom Invited to Share its Expertise in Singapore
  12 July 2006



• A First: Blackberry Application for Low-Cost International Calls Announced by MINO Wireless
  12 July 2006



• Nokia 3250 Music Phone Goes "Triple Platinum" - One Million Units Sold - in Less Than Four Months
  12 July 2006



• CDG Congratulates Telecom New Zealand on Commitment to CDMA2000 1xEV-DO Revision A
  12 July 2006