Alongside the growth of China’s Internet market is the development of its wireless data sector. More than 640 million people have mobile phones in China and the mobile operators open their platforms for third parties to provide wireless value added services (WVAS) such as ring tone downloads and games.
Initially, they wanted to encourage third-party participation and terms were very generous. New companies such as Tom Online, Kongzhong, Hurray and Linktone flourished. But, starting in 2004, the mobile operators tightened controls and took part of the wireless value added services in-house. The fate of third-party players changed overnight. Many have been running losses since mid 2006. With 3G’s arrival in 2009, could it be another boom-bust cycle? Read the article in Global Times.
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