At the same time as companies like KongZhong (KONG) and Linktone (LTON) have seen their stock prices plummet, business information provider Analysys 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 sector.

China Mobile recently notified value-added service providers 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. Wireless companies fear that the changes will inhibit their mobile services' growth.

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. The research form says China Mobile's new policy will not limit the rapid development of the mobile VAS market but will drive service providers to improve product and service quality.

By the first quarter of 2006, China's mobile telecommunications subscribers reached 410 million. Excluding SMS services, total mobile VAS market size reached CNY 6.23 billion in the first quarter.

According to Analysys, the top 10 service providers have accounted for 56% of the total market in China. About 30% in the revenue structure of over 70% small and medium service providers come from "gray" revenue, and over time this type of revenue will decrease.

Related Links:

• http://www.miit.gov.cn

 Loading ...