Bottom line: China Mobile’s retirement of its Internet-based texting and video services reflect its inability to compete with private providers of such services, and underscores its growing position as a slow-growth network operator.
China Mobile shutters Internet text, video services
In a move that was long overdue, leading wireless carrier China Mobile (HKEx: 941; NYSE: CHL) has thrown up the white flag with a symbolic surrender to WeChat, Youku and the many other private companies that have steadily stolen its new business opportunities. In this case the surrender comes in the form of formal retirements for China Mobile’s Internet-based Fetion texting service, and also its lesser known mobile video product.
Fetion was once hugely popular in China, allowing users to send SMS text messages for free by routing them over the Internet. China Mobile was an early innovator in creating that kind of “over the top” (OTT) service that took advantage of the mobile Internet. But more recently it has rapidly lost that position to more nimble private companies like Tencent (HKEx: 700) and Youku. Read Full Post…
The near-monopoly held by Tencent’s (HKEx: 700) WeChat in China’s mobile messaging space could soon get a fresh shot of competition, with word that e-commerce giant Alibaba (NYSE: BABA) was in talks for an alliance to revive China Mobile’s (HKEx: 941; NYSE: CHL) fast-fading Fetion text messaging service. Such a powerful tie-up could take direct aim at the current stranglehold on the market held by WeChat, which now has more than 400 million active users and has become an indispensable communications tool for many. Read Full Post…
New data is showing an acceleration in the decline of text messaging (SMS) in the new age of over-the-top (OTT) services like WeChat, underscoring the urgency for China’s 3 telcos to find new replacements for this important revenue generator. The decline of SMS isn’t new, and has been discussed by all 3 of China’s state-run telcos at one time or another over the last 2 years. The issue was also at the center of a high-profile dispute between China Mobile (HKEx: 941) and Tencent (HKEx: 700) in late 2012, involving the rapid rise of WeChat. But the latest figures do point to an acceleration of the decline, which will lead to hundreds of millions of dollars in lost revenue for the big telcos. Read Full Post…
After months of complaining about new competition from the private sector, dominant mobile carrier China Mobile (HKEx: 941; NYSE: CHL) is finally developing its own rival products to combat the rapid rise of WeChat, a popular mobile messaging app run by Internet giant Tencent (HKEx: 700). This move is what China Mobile should have done from the start, and marks the carrier’s own important realization that it can’t depend on Beijing to protect its dominant market status the way it might have in the socialist era. Read Full Post…
We’re seeing some interesting new moves in the smartphone space from e-commerce leader Alibaba and dominant carrier China Mobile, as each makes big new bets in the fast-evolving area. Alibaba is launching its mobile operating system (OS) on a new series of smartphones with several Chinese partners, following a similar aborted attempt last year. China Mobile, meanwhile, is planning a major overhaul for its popular but rapidly aging Fetion mobile messaging service, in an attempt to compete with newer, more popular third-party apps like Tencent’s (HKEx: 700) WeChat. Read Full Post…
The following press releases and media reports about Chinese companies were carried on April 17. To view a full article or story, click on the link next to the headline.
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China Mobile (HKEx: 941) Restructures Fetion Mobile Messaging Service (Chinese article)
The rapidly changing mobile landscape is creating some interesting challenges for China Mobile (HKEx: 941; NYSE: CHL), which is finally seeing its 3G market share stabilize as it reportedly may be weighing a bid to buy out the partner for its fading Fetion mobile messaging service. The 3G news is clearly the more important in this pair of news bits, and probably reflects a combination of factors that should bode well for China Mobile as Beijing gets set to issue new 4G licenses. Meanwhile, the latter rumors involving Fetion is probably more wishful thinking from Fetion’s current owners, who would like to get some money for their instant messaging platform which is rapidly being overtaken by newer smartphone applications, most notably Tencent’s (HKEx: 700) WeChat.
The following press releases and media reports about Chinese companies were carried on November 21. To view a full article or story, click on the link next to the headline. ══════════════════════════════════════════════════════
China Mobile (HKEx: 941) to Buy Fetion from Ultrapower (Shenzhen: 300002) – Source (English article)
CNOOC (HKEx: 883) Accepts New Canadian Terms to Win Nexen Deal Nod: Report (English article)
Agricultural Bank of China (HKEx: 1288) Approved For Jiahe Insurance Investment (HKEx announcement)
Phoenix New Media (NYSE: FENG) Reports Q3 Unaudited Financial Results (PRNewswire)
Toys“R”Us Launches Dedicated Web Store in China (Businesswire)
The following press releases and media reports about Chinese companies were carried on September 6. To view a full article or story, click on the link next to the headline. ══════════════════════════════════════════════════════
Lenovo (HKEx: 992) to Buy Brazilian Electronics Company CCE (HKEx announcement)
State Planner: Consumer Fraud Involved in Online Price Wars (Chinese article)
The rapidly changing mobile landscape is creating some interesting challenges for China Mobile (HKEx: 941; NYSE: CHL), which is finally seeing its 3G market share stabilize as it reportedly may be weighing a bid to buy out the partner for its fading Fetion mobile messaging service. The 3G news is clearly the more important in this pair of news bits, and probably reflects a combination of factors that should bode well for China Mobile as Beijing gets set to issue new 4G licenses. Meanwhile, the latter rumors involving Fetion is probably more wishful thinking from Fetion’s current owners, who would like to get some money for their instant messaging platform which is rapidly being overtaken by newer smartphone applications, most notably Tencent’s (HKEx: 700) WeChat.
