Friday, December 31, 2004

China Telecom to boost Internet TV (IPTV) in 2005

From Light China Telecom Launches IPTV

"IPTV in China is set to take off in the New Year, as China Telecommunications Corp. has announced plans to aggressively expand its rollout.
The operator launched its Oriental IPTV service in Shanghai on Tuesday, but it’s planning on large-scale promotion across China in 2005, the Xinhua news agency says.
The announcement follows a report last week from that the carrier has teamed up with Shanghai Media Group, one of China's largest media organizations and owner of extensive program content and national radio and television channels."

"China Netcom Group Corp., the second largest national carrier, has also indicated it’s stepping up development."

Tuesday, December 28, 2004

China´s Internet Industry in 2004

From China's Top Four Internet Industry Stories For 2004

"1. China Mobile Flexes Its Muscle
Investors should also have a very clear understanding that the portals like,, and do not make a truly impressive amount of money off their relationships with China Mobile. I warned two years ago, and again earlier this year, that receivable cycles were tortuously long in the China telecommunications sphere. And sure enough, last year and again this year we saw many times where the portals issued guidance that they were having problems collecting from their daddy.

2. No Bubble-Bursting
One big story of the year is what didn’t happen: with the big run-up in share prices of Chinese listed stocks such as Sohu, Sina and Netease in post-SARS 2003, many thought the stocks were due for a big correction, a big bursting of the bubble. The surprise: it did not happen. While share prices of most Chinese tech companies hover far below their all-time highs, the share prices remain at lofty levels. Mary Meeker should be proud.

3. The American Occupation
This was the year when the large American online players began to make their move on the Chinese Internet sites. There was Amazon buying a stake in, one of China’s leading online booksellers. Barry Diller’s IAC took a controlling stake in eLong, a top Chinese online travel site. Yahoo and Google moved in on Chinese search and auction sites.

4. Technology Rules and Regulations
No central government can operate without rules. The scope of laws governing business practices increased in China this year and we saw rules about Internet cafes, laws governing media joint ventures, jail for online editors, edicts to halt the spread of spam, and online pornography crackdowns. " Read more

Thursday, December 23, 2004

China's Records: A digital China in the eyes of foreigners

From the People's Daily Online: A digital China in the eyes of foreigners (translated from the french L'Epress weekly)

"By 2010 China would become the second largest advertising market in the world leading Japan and after the US. In 2003 it ranks the fifth with expenditure on advertising reaching $14.5 billion. "

"In the first seven months this year China has exported 73 million handsets (year-on-year increase of 55 percent). There is one handset made in China in every three sold worldwide. About 550 billion short messages have been sent in China, of which 10 billion were sent during the Spring Festival."

"China has 100 million netizens ranking the 2nd worldwide after the United States. It may jump to the first place by 2010."

"China has 30 million online game fans. Because of this China has the largest online gaming population in the world."

"In 2003 China sold 10.5 million personal computers, which double the annual sale in France. By 2010 China may become the largest PC producer. "

"In every two digital cameras sold worldwide more than one is made by China."

"By the year 2007 about one third global electronic industry will settle in China."

"A new power plant emerges every week in China. The growth of electricity market in 2004 alone is equivalent to the aggregate of electricity market in Britain."

"Shanghai is China's largest city with a population of 17 million. GDP of the Shanghai region is equivalent to that of Brazil." Read more

Wednesday, December 22, 2004

Roth Capital Partners Report on China Game Market; Shanda, Netease with Buy ratings

Just found this link to a Report on the China Game Market:
Roth Capital Partners Report on China Game Market

Shanda and Netease with "BUY" ratings.

(Worth reading)

Monday, December 20, 2004

Strong growth of Broadband Users in China


"According to statistics released by Ministry of the Information Industry of People's Republic of China, broadband users in China keep growing in 2004. By January 2004, total amount of broadband users is 11.863 million, and this number increase to 21.724 million as end of October 2004." See barcharts

China Mobile October WAP Rankings; Kongzhou, Tom Online, Skyinfo

China Mobile recently released the October rankings of service providers in terms of WAP revenues.

Ranking; WAP Provider; Revenue (million RMB)
1 Kongzhou 17.7
2 Tom Online 9,8
3 Skyinfo 6.6
4 PNE 5.1
5 Liandong Weiye 4.9
6 Sina 3.7
7 MNC 3.3
8 M-Dream 2.4
9 Goodfeel (Sohu) 2.4
10 3721 2.3

Source: China Mobile

Microsoft Partners With China Mobile And Sina

From Pacific Epoch:

"Microsoft released an Office 2003 update package over the weekend for China that included support for short message service (SMS), reports Beijing Star Daily. According to Microsoft, the company has reached agreements with China Mobile and Sina to allow SMS sending in Outlook 2003. Microsoft (China) vice general manager Zhao Xin said that Microsoft only provides a platform for its SMS partners and does not share the revenues."

China's mobile phone short message business booming

From sify(finance).com: SMS biz balloons in China

"China's mobile phone users are expected to send over 220 billion short messages during the year, raking about $2.12 billion, the Ministry of Information Industry (MII) has forecast.
From January to October this year, Chinese mobile phone users have sent 176.06 billion short messages, the MII said. The year end figure is expected to exceed 220 billion, an increase of about 50 billion year-on-year, it said.
If each text message costs 0.1 yuan (about 1.2 US cents), the business had generated a total of 17.6 billion yuan (about $2.12 billion) by the end of October this year, a ministry official said."

"China had 315.1 million mobile phone users as of the end of August 2004. "