Friday, July 07, 2006

telecom - Content-providers fear revenue drop after China Mobile changes policies

Third parties fear that a change in the revenue distribution by China Mobile will hit their results over 2006, according to Reuters. While details are still lacking, a content provider like Tom.com expects a drop of 10-20 percent in its revenue streams.
China Mobile, followed by China Unicom, the two only telecom companies who have a license to provide mobile phone services, did not prolong last month contracts that were overdue. The one-side approach by the telecom providers has severely pissed of their suppliers, but because of the quasi-monopolistic character of the market, they have very little chances of influencing those policies.

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