Beijing Hutong, one of Hurray's (HRAY) affiliated operating companies which provides wireless value-added services, has received a fine of approximately US$400,000 for violating China Unicom's (CHU) billing policy by one of its WAP services in October 2005.
In addition, China Unicom has ordered suspension of the relevant WAP service.
A charge related to the penalty will be recorded by the company in the first quarter of 2006. In addition, the company says it expects that the suspension of the WAP service will negatively impact its revenue generated by the service going forward.
Upon receiving the penalty notice for the October 2005 violation, Hurray management immediately took actions to further tighten operational control and is actively working with China Unicom to ensure full compliance with all China Unicom service policies and regulations.