China Mobile tests new service
By Li Weitao (China Daily)
Updated: 2006-06-16 10:08 The number of IM users in the country reached 93 million last year and is
forecast to hit 120 million this year, according to Shanghai-based iResearch
Consulting Group.
Wang Guoping, an analyst with China Galaxy Securities,
said the launch of Femoo will put China Mobile in a position to compete
head-to-head with SPs, especially Tencent.
"China Mobile has a very
well-established monopoly in the wireless sector," he said.
"With the launch
of Femoo, it will snatch up a big number of mobile phone-based IM
subscribers."
Many IM platforms are integrated with various other
functions such as file-sharing, music downloads and SNS (social networking
service), which help IM providers generate additional revenue.
The SNS
tool helps subscribers to establish new connections and enhance existing
friendships.
Tencent controls about 70 per cent of China's IM market and
most QQ subscribers are young people.
Hong Kong-listed Tencent's revenue
in the first quarter of this year increased by 115 per cent year-on-year to
reach 645.3 million yuan (US$80 million).
Its revenue generated from the
mobile and telecoms value-added services accounted for 25.3 per cent of the
total.
The figure could decrease after the suspension of the partnership
between Tencent and China Mobile, analysts said.
Currently Tencent
charges its users 5 yuan to 8 yuan (62 US cents to US$1) for using QQ on mobile
phones.
The impact of Femoo on MSN messenger could be minimal as MSN
messenger is used mainly by office workers in China, and they are more loyal,
Wang said.
Li Jiayan, an analyst with Beijing-based Analysys
International, said China Mobile still faces a tough job to help users get used
to a new IM tool despite its monopoly.
"It's better for China Mobile to
co-market Femoo partnering with SPs," Li said.
(For more biz stories, please visit Industry Updates)
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