Opinion
Telecom firms expand IM services in China
By Wang Xianyi (China Daily)
Updated: 2009-12-07 07:51
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Wang Xianyi |
With the expanded distribution of Internet applications, the IM market has emerged as the driving force behind the growth of telecom operators.
According to data released by the China Internet Network Information Center, the number of Internet users in China reached about 220 million as of June, with 70 percent using the IM service.
The development of the mobile Internet dramatically increased data services, while at the same time speeding up Voice-Over-Internet Protocol (VOIP) services.
It is projected that the Internet business model will take a larger share of the revenue model of telecom operators. With the increased use of the mobile Internet, IM service providers are rapidly advancing into mobile data, voice, and video telecom sectors.
IM services had a positive effect on securing customers, and improving the brand image of telecom operators.
Fetion, a new IM service released by China Mobile, enhanced user brand loyalty through its interactive interface and content. The service also attracted potential customers, created new revenues through Internet ads and additional services by encouraging subscribers to use IM more frequently.
China Unicom is also preparing to launch an IM service with various functions.
Acquisitions
Telecom operators have focused on developing IM services to retain existing customers while attracting new customers through integrated information platforms.
Tencent, which managed to secure a large number of subscribers, created revenues through online games, e-commerce, portal ads and additional services based on its QQ platform.
In 2006, Tencent sold its mobile IM service unit to China Mobile and decided to focus on its Internet IM service.
Tencent's mobile QQ platform and 7 million users were gradually transferred to China Mobile's Fetion platform, and mobile QQ was withdrawn from the market.
China Mobile successfully launched its own IM service by combining its 500 million users (70 percent of cell phone users in China), and Tencent's mobile IM service unit.
In July 2006, before the launch of Fetion, China Mobile recognized the importance of the mobile IM market. At the time, the mobile IM service market was dominated by Tencent's QQ, with Microsoft's MSN, TOM's Skype, Sina's UC and Yahoo's Messenger competing against each other.
China Mobile had the capability to expand as it had a definite advantage in the number of users, technology and infrastructure.
