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TMCNet:  China Mobile to Centralize Wireless Music Operations

[July 09, 2009]

China Mobile to Centralize Wireless Music Operations

SHENZHEN, Jul 09, 2009 (SinoCast Daily Business Beat via COMTEX) -- In the wake of the founding a centralized music platform, China Mobile Ltd. (SEHK: 0941, NYSE: CHL) has set up centralized music, video, and mobile payment centers around the country.

Starting from January 1, 2010, it will centralize all its wireless music operations by storing all ringtones in a repository centerd in Sichuan province. From next year provincial China Mobile operators will not be allowed to offer their own ringtones.

The move is an extension of the 2006 launch of China Mobile's central mobile music platform, operated by CM subsidiary Sichuan Mobile, allowing content providers to negotiate just once rather than with each of China Mobile's 31 provincial branches. However, provincial branches had still been allowed to maintain their existing ringtones platforms independently.

The new business model of the telecom carrier's wireless music will be applied to its video, gaming, and mobile payment units.

The Sichuan music center by far has a selection of more than 1.1 million songs. And the wireless music club under the center has recorded over 90 million members.

All videos enjoyed by China Mobile subscribers now are offered by the video innovative center of China Mobile in the Pudong District, Shanghai.

Wang Hua, general manager at the data business department of China Mobile Shanghai, discloses that the video center is expected to become the largest wireless video and content operation center in China. It will have 10 million video users by 2010.

Now China Mobile's mobile phone video business is growing explosively, with 14 million in monthly sales. The number of its video users has increased to 80 million from 2 million.

China Mobile's location positioning service is mainly operated by its branch in China's northeastern Liaoning Province. Mobile phone maps, real time traffic information, and GPS services are offered by the branch.

China Mobile's branch in Hunan is charged with responsibility to run mobile payment services. Hunan Mobile expects to see its mobile payment transaction for 2009 to top CNY 5 billion.

To enhance its lead over the wireless music market, China Mobile plans to sell nearly one million handsets installed with the State Administration of Radio, Film and Television's (SARFT) China Mobile Multimedia Broadcasting (CMMB) TV function in the second half of 2009.

The phones, which will cost a minimum of CNY 1,500, will hit shelves this October at the earliest. The CMMB standard will be partnered exclusively with TD-SCDMA, China's homegrown 3G standard operated by China Mobile.

(USD 1 = CNY 6.83) Source: dycj.ynet.com (July 09, 2009)

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