Analysys International Says Developing WAP Service Websites Will Challenge

Monternet's Dominant Position in China

BEIJING, Dec. 28 /Xinhua-PRNewswire/ -- Analysys International, a
leading Internet-based business information service provider, says
that the rapid development of China's portal websites' WAP services
will challenge the dominant position of China Mobile's Monternet in
China's WAP service industry.

News Background:

Mr. Wang Jianzhou, China Mobile's President, says that Monternet has
reached the turning point after years of development. The existing
business model is to operate all services on China Mobile's platform,
which has enabled operators to control the copyright form the source.
But the development of WAP2.0 has provided much content to be
downloaded free from the Internet, which will inevitably have an
impact on their operating model. He says China Mobile will not enter
the market for content providing and will continue to cooperate with
CPs and SPs. China Mobile's current principle is to maintain balance
between supervision and development.

Quick Analysis:

Lately, China's portal websites, including Sina and Sohu, increased
their investments on WAP websites, showing that WAP has become one of
their future development focuses. Their strategy to enter the WAP
service market is to attract visits from users by providing contents
like news and relative information. The increasing visit volume of
free WAP websites has attracted China Mobile's attention. President
Wang's words showed that China Mobile will still adopt the semi-closed
operating model for Monternet. They will surely strengthen regulations
on the free WAP websites to maintain Monternet's dominant position.

According to Analysys International's Awtach-Mobile VAS Service, China
Mobile's strategy to strengthen regulations on free WAP services will
increase the entry barrier of WAP service industry, and drive more WAP
resources to concentrate on Monternet and eventually lead to their
industry monopoly. However, things would not necessarily go the way
China Mobile wants. As the WAP industry matures and develops, Internet
based portal websites will challenge Monternet's monopoly by
leveraging market tools and propel the industry into an open
developing model. Also, the interconnection between WAP and the
Internet will also challenge Monternet's monopoly.

Analysys' Position:

Analysys International thinks that many market factors, including the
rising of portal websites and the interconnection between WAP and the
Internet, will inevitably challenge Monternet's monopoly position.
China Mobile cannot change the potential industry development demand
simply by regulatory movements. Therefore, changing operation ideology
and innovate business model should be critical for China Mobile to
achieve the strategic transition for Monternet.

About Analysys International

Analysys International is the leading Internet based provider of
business information about technology, media and the telecom industry
in China with the mission to help their clients make better business
decisions. They provide data, information and advice to 50,000 clients
worldwide, representing 1,500 distinct organizations, deliver over 150
consulting engagements a year, and hold more than 20 events that draw
in over 8,000 attendees. Their clients include executives from
companies like technology vendors, vertical information technology
users, as well as professionals from professional service companies,
the investment community and government agencies. For more
information, please visit the web site at
http://english.analysys.com.cn.

For more information, please contact:

Jessica Wang

Overseas Media Manager

Analysys International

Tel: +86-10-6466-6565 x394

Fax: +86-10-6466-7102/7103

Email: jessica_wang @analysys.com.cn SOURCE Analysys International