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» China Mobility Solutions Says to be Unaffected by Policy Changes in telcos
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Subject: China Mobility Solutions Says to be Unaffected by Policy Changes in telcos
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China Mobility Solutions Says to be Unaffected by Policy Changes in telcos
China Mobility Solutions, Inc., a Florida-based Short Message Services (SMS) provider announces that it will not be affected by a series of policy changes by mobile telephone giants China Mobile and China Unicom that have raised alarm for many Chinese mobile content providers.
The telecom companies' move to regulate content-providing services offered over their networks has caused concern to many companies that depend on value-added-services telecom revenue, with some companies predicting a decrease in revenue of as much as 20%.
Mobile content providers in the individual market expect to be hit hard by these changes because of their revenue model, which depends on services that are billed monthly on an on-going basis, whether or not customers actually use the services. The new policies will require these companies to offer longer free trial periods and have customers confirm subscriptions. While the content providers admit that they can't accurately predict the effect it will have on their revenue, they expect many initial automatic cancellations when users don't confirm subscriptions after the changes first take place this month.
While the new regulations apply to all mobile content providers that use China Mobile's and Unicom's networks, China Mobility's revenue model differs from that of the individual market content providers, and the new regulations will not affect its revenue. Instead of targeting the highly competitive individual market, China Mobility targets the business market for its mobile solutions. Its business customers pay an annual fee in order to access its platform and services, which is paid up-front at the beginning of the year.
The new changes will have no effect on revenue, which continues to increase along with the growing customer base. The company reported a 29.5% year-over-year increase in revenue in the first quarter and a 14% increase in customers, and the second quarter continues to show increases.
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