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Mtone, Treasure Explorer (2004-01-12)

According to predictions, there would be 1 billion wireless users and a market worth over USD 215 billion at the end of 2003. The totally open mode will provide unprecedented high speed to the development of China's wireless data service industry. In 2003, among 600 billion SMS in the whole world, 200billion were sent by users in China, which means that, on average, among 3 SMS', one was sent by a user in China. As the recognized initiator of the wireless network industry, Wang Weijia, CEO of Mtone stated 3 years ago: "The wireless network will create a brand new industry in the whole world. The future economy will be the 'thumb economy'." Today, Wang predicted again: "China's wireless network will rise to Number One in the whole world in 2006!"

Wang is the initiator of the wireless network industry, the explorer of the emerging business, and the participant of market cultivation. How does he face the fast growing and changing market? How does he lead Mtone in the treasure exploration? Wang Weijia said: "The popular SMS products built up the advanced environment for the development of all SP's. Thanks to the value link mode in China, which is the most open one in the whole world, the strong product advantage of Mtone and our mature and regulated operation ideas, Mtone turned out to be the top one among thousands of SP's in China. Though the market is constantly changing, changes are not absolute. As a SP, we probe into the changing market with our continuous study, which rewards us with broad industry views and accurate market strategy adjustment."

Mtone, as the initiator of China's wireless service market, took the lead in the provision of commercial wireless information services in 1998. Today, mobile entertainment services undoubtedly have become the mainstream of the market. Wang said: "We offered some mobile entertainment services before. However the real long-term development started with the establishment of the mobile network value link represented by Monternet, which is the most open mobile value mode in the whole world."

Since 1999, Mtone started to cooperate with China Mobile in providing mobile information services to mobile users with its advanced technologies. As one of the earliest SP's collaborating with China Mobile, Mtone also actively participated the planning of the establishment of "Monternet".

Wang Weijia said: "Japan and South Korea take the half open mode, while Europe takes the totally closed mode. The US doesn't have SMS at all. Only China's carriers adopt the fully open mode in the whole world. SP's can share profits and can go to the front lines to contact users, or perform sales promotion directly."

Thanks to the tolerant market environment, SP's in China obtained unusual development chances. Up until now there have been 3600 SP's in the mobile business. The key problem here is how to breach through severe competitions and accomplish success.
"Though the SMS market seems to be prosperous, we can be much too optimistic. In severe competition, we won with our personalized products." Wang is very confident in this aspect, "We can fully address customers' requirements. Based on our professional advantages, we developed the core values of our products aiming at respective breakdown user groups. Therefore, the personalized products we launched are warmly welcomed by users."

Multi-User Dungeon (三界传说) is a great hit. It is a game developed by Mtone based on the text word MUD (Multi-User Dungeon). Fully integrating the advantages of text word or picture games that are popular on the Internet, the game also presents the differences between the SMS operation and expression. The large-scale, multi-player, and real-time wireless interaction network game was popularized since July this year. Until October, there have been a total of 43 million SMS messages including both upstream and downstream ones.

Wang Jiawei commented on the reason why the pure text work SMS game is so popular: "It is like a poem of Tang or Song Dynasty. With very few words, it can present the most elite part of China's civilization. Though there are only 70 characters involved in the SMS, with the well designed environment and friendly user interface, the network product can still turn out to be a success."

Another great breakthrough for Mtone in SMS services is "Bubble Xiaoxin (泡泡小新)". This is the first SMS entertainment game that won over a million players. Therefore, only one game can provide RMB 8 million to Mtone per month.
According to researches, Mtone ranks the first between all professional SP's in terms of service types and revenue. Mtone is now standing at the top of China's wireless application.

When China adopted the planned economy, unregulated operations did not exist since the government controlled all operations. However, since we entered the market economy age, we need to set up laws and regulations to avoid nonstandard operations. Similarly, the biggest problem in the fully open mode also comes from nonstandard operations. Wang Weijia also showed his worries: "A few SP's can not resist the temptation of profits. Their unregulated operation will definitely hurt the healthy development of the whole industry. It is the duty for each SP to maintain the overall benefit of the whole business, without which, SP's will also lose protection for their existence."
This is a warning for the main members of the wireless industry link including the network carrier, terminal vendor and content service vendor who all need to fulfill their obligations. Wang said, "The mobile data industry chiefly features the instant moment, as a result, each part in the industry must provide services of the telecom level. It is necessary to every member in the industry to form a healthy, strongly competitive industry link after a good profit sharing mechanism is established."

Wang also said, "Mtone has already invested large amount of resources. We established basic infrastructure platforms in over 20 provinces where we provide services, and also set up functions to connect with the ports of charge and net gate systems. This has provided strong technical support to the stable business operate and the cooperation with other companies. Services of the telecom level are provided to customers. With its reputation and strength, Mtone also carried out the cooperation with Japan, South Korea and other domestic wireless application service vendors and media. The fully automated system can achieve daily and weekly tracks for service applications."
When asked about problems such as requirements of returning subscription and trouble SMS, Wang Weijia seemed to be relaxed: "This is out of question to Mtone. We must solve these problems."

At the end of the interview, Wang also showed his attention to the future 3G application: "According to the development trend, the voice user market for the 2.5G of today and 3G of tomorrow is already saturated. The data business will take the lead. With the 2.5G, commercial applications can be well satisfied. Therefore the future 3G will concentrate on games and entertainment. However the contradiction is that real game fans cannot afford 3G phones. As a result, Mtone should still focus on the 2.5G, and meanwhile closely track the 3G. We will pay close attention to the development trend of the market and carriers, and get our technologies ready. I believe that Mtone can maintain its top position in the wireless mobile value-added services, always taking the leadership in the market."

2004-06-10 17:21:01.413


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