Operators to increase supervision in 2006 SP busy transformation

In 2006, SP’s golden years are over, replaced by a more standardized market constraints.

is the same as the NASDAQ listed companies, SP (service provider) has achieved great success in a short period of time, but relying on the Internet and other business income compared to SP more depends on the attitude of telecom operators and regulators, will result in SP company income such as the roller coaster like fluctuation.

frustrated

the Ministry of information industry and the operators of this year in the regulatory policy for SP is undoubtedly a storm since the move to carry out up to 20 ~ 40 days free users and SMS confirmation act, plus the original SP inventory has a customer is legal, China stocks collective diving. Among them, the impact of the pure SP was the most significant, during this period, TOM (TOM.NASDAQ) shares fell 19.59%, air network (KONG.NASDAQ) share price fell by 11.33%, Hurray fell by 2.44%.

JP analyst Morgan Wei in July 6th, the report predicts that China’s SP listed companies in the second quarter of 2006, in the third quarter of the year, there will be about 10% ~ 20% of revenue loss. This is followed by several SP quarterly verification.

perhaps it was then that the winter of SP really came.

in addition to the policy, for SP, the operator into the pace of SP is also a direct impact on the pattern of the industry. July 18th, China Mobile vice president Lu Xiangdong announced that M.Music wireless music club was established. Club members include the world’s four major record companies and domestic mainstream record companies, portals and large professional SP, mobile terminal manufacturers and music media.

can be predicted that the future of the SP industry will evolve from the pattern of thousands of SP into several giants to carve up the market, big SP are beginning to focus on the construction of the whole industry chain.

TOM has been regarded as China’s most successful SP companies. The third quarter of 2006, TOM online total revenue of $38 million 950 thousand, of which wireless Internet services revenue of $34 million 710 thousand, accounting for 89.1% of the company’s total revenue in the third quarter. However, due to the impact of the policy, TOM revenue fell 19.6% over the same period last year, down from the previous quarter by 24.1%.

over the past year, TOM’s stock price between $8.83 to $28.89, the company’s market capitalization of about $821 million.

has also been hit by the company’s air network. Air network in the third quarter of 2006 quarterly report shows that its total revenue was $25 million 80 thousand, down by 17% over the previous quarter. The third quarter of 2006, the air network 2.5G services (including WAP, MMS and Java Technology) revenue fell 24% over the same period last year, compared with the previous quarter of 20% was $10 million 970 thousand.

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