China Mobile squeezes value-add players
It definitely doesn't look like good times for wireless value added services (WVAS) providers in China. It is rumored that China Mobile is contemplating creating its own mobile phone operating system to claw in more revenue, and by doing so, squeeze out the little guys. This isn't a wee little operation ladies and gents, current numbers released by China Mobile list them as having some 306 million subscribers -- though fully four-fifths of them are prepaid. Citing new regulations by the Chinese government on exorbitant end-user charges, (hey wow, we know all about that too) and increasing pressure from China Mobile -- MVASes are now in firing, rather than hiring mode. Companies such as Tom Online and KongZhong Corp count on as much as 20 or 30 percent of their revenues from software and music services integrated by the cell phone manufacturers -- so, yeah, it is fair to assume this is bad news. Just in case any of those pesky businesses still have any life left in them, China Mobile may also be considering adding a ten-fold data levy to WVAS providers outside its network (in other words, "buy from us or suffer"). Engadget's finance tip of the day is: don't head to China to start up a MVAS operation.
[Via Moco News]
