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China Mobile Value-Added Services Will Hit RMB 57.15 Billion in 2006
added: 2007-04-11

As the communication expense is exclusively enjoyed by mobile operators and around 15% of message fees also belong to operators, so most of the income from mobile value-added services is pocketed into them, while only a small part of the income is left for SP. Even though, SP can still make enough profits thanks to the enormous market scale.

The SMS revenue of most SP began to decline in the year of 2005 while the income of the operators experienced a steady growth. The statistics from Ministry of Information Industry show that by the end of Oct 2005, about 246.66 billion pieces of short message have been sent, the revenue from which has exceeded RMB 25 billion, increasing by 40.1% over the same period of 2004. Meanwhile, the handset users have been over 383 million and short message sent per capita reached 64 pieces. SMS is expected to hit new record in the year of 2006.

The recent three years witnessed a rapid growth for MMS but in a wavy trend due to seasonal factors and policy adjustment of operators. In addition, MMS achieved a market scale of more than RMB 2 billion by the end of 2005.

IVR won't be greatly influenced in the early days of 3G, however parts of data services will attract IVR users along with the gradual development of 3G, which would result in a depression of IVR in 2006-2007. However, the decline tends slowly owing to IVR’s strong innovation ability.

WAP now shows huge market potentials and faces a good investment opportunity. Whereas, the upcoming 3G can't bring great returns immediately for the investments in WAP. As a matter of fact, being a channel, WAP can provide most of mobile services but its development is based on the rich application contents. Therefore, WAP will see a continuously steady growth.

Wireless music includes mobile ring-tone, CRBT and mobile music, which are developed in an inheritable way. The market of mobile ring tone was saturated with its scale reaching RMB 2.8 billion in 2005; the market scale of CRBT totaled at RMB 5 billion by the end of 2005 though, it will decline in 2007-2008; and mobile music is expected to be the first kind of value-added service with high-speed growth in 3G era. Due to the strong market demands and the cooperation of industry chain of many giants, mobile music has presented a rapid development momentum since early 2006 and it will outpace CRBT to achieve a market scale of around RMB 8 billion by 2007.

As mobile music develops amazingly, the related 3G value-added services will start up successively, among which mobile video will draw striking attention. The market scale of mobile video can reach about RMB 1.5 billion in 2006 but its rapid growth will appear after the year of 2007. As the video communication by handset comes true, mobile video market will expand rapidly. And media playing by mobile video will be most expected in the future.

Restricted by expensive charge and undiversified forms, mobile game has been developing slowly. So such games as Java, Brew won't have a fast development until 2007 because the problem on terminal and network should be resolved first.

3G constructions will get optimized and enlarged till 2008, when more emerging 3G value-added services will come forth. It is no doubt these new services will stimulate the former services so that an interactive growth can be formed.


Source: Business Wire

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