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China market: Censorship of handset content affecting mobile value-added services market

The China government's recently implemented censorship of handset content is hampering the mobile value-added services market in China, according to Tom He, chairman of Beijing Digital Grid Technology. He was in Taipei last week.

The market is losing 200 million yuan (US$29.3 million) a day, including 100 million yuan incurred by China Mobile as the 3G carrier has suspended all of its paid WAP and SMS services to cope with the censorship policy, He noted.

The market for mobile value-added services reached 180 billion yuan in 2008 and is expected to expand to 220 billion yuan by 2010, but the new policy may curtail growth momentum, according to market sources in China.

The ratio of mobile value-added services to overall revenues of telecom carriers in China is likely to adjust downward to 29% in 2009 from the 31% projected earlier, He estimated. The ratio of mobile value-added service revenues stood at 22.3% in 2006 and climbed to 27% in 2008.

China's censorship on handset content will continue in effect until May 2010, He revealed.

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