According to iResearch, a domestic professional Internet research house, the Chinese wireless value-added service market will still achieve steady growth, despite the ongoing regulatory campaign and a reshuffling of the industry.

"The overall trend of the wireless value-added service market is good and the prospects are bright," said Henry Yang, president of Shanghai-based iResearch. He said he believed the popularity of smart phones, the enrichment of content of wireless value-added services, and the launch of the third generation mobile communications systems would lead to greater prosperity of the industry.

The regulatory campaign and the upgrading of mobile operators' technology is expected to lay a solid ground for future growth. Because of the regulatory campaign's impact, the industry is anticipated to will grow by 65% to 38.54 billion yuan (US$4.65 billion) this year, compared to the 149% year-on-year growth in 2003, according to a recent report on the wireless value-added service market. The growth will further decline to 41% and 35% next year and 2006 respectively.

However, with faster growth than that of phone-to-phone services, the proportion of the whole wireless value-added service market will increase from 19% at the end of 2003 to 21.8% this year.