Wireless Value Added Services is one of the fastest growing sectors of China¡¯s Internet industry. The Wireless Value Added Services sector has grown from zero to approximately $1.2 billion in just five years. The Wireless Value Added Services sector is expected to double over the next five years resulting from (i) growth in wireless subscribers, (ii) low wireless penetration rates, (iii) increased spending power, (iv) average revenue per user (¡°ARPU¡±) expansion, (v) content proliferation, and (vi) network upgrades. Wireless Value Added Services service providers aggregate and/or develop digital content for wireless operators (e.g., China Mobile and China Unicom). Wireless Value Added Services based on current 2G and 2.5G networks include: short messaging services (SMS); multimedia messaging services (MMS); interactive voice messaging (IVR); games; screen savers; ring tones; color ring back tones (CRBT); wireless application protocol (WAP); and music downloads. The development of 3G networks potentially expand the range of Wireless Value Added Services to include video messaging, wireless video chat, wireless radio and IPTV. Jingwei creates new services platform and operate the service as virtual operator.
Fees are charged to a subscriber¡¯s monthly bill and wireless operators typically charge a predetermined percentage of this fee and remit the remainder to the service provider. For advanced services, revenue sharing varies among products.
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