China Mobile punished recently-listed for breaking the telecom's Interactive Voice Response (IVR) regulations. As a punishment, Kongzhong can not apply for any new product and service for its current Java, color mobile messaging, WAP, IVR and SMS platforms until June 30, 2005.

Twenty-two other wireless value-added service providers, including Sina and Sohu, have received stiff penalties from China Mobile in recent weeks for different infractions, including dissemination of pornography and spamming of mobile users.

China Mobile will also terminate product and service promotions with Kongzhong by the end of 2004.

According to Kongzhong's CEO, the company will work to make adjustments on their business and attempt to maintain a close relationship with China Mobile. IVR accounts for a small portion of Kongzhong's revenue and the company believes the punishment will not affect them much in the short term.


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