Rumor: China Mobile Reforms WVAS System
Sina Tech, 5/08/10
Informed sources report that China Mobile (NYSE: CHL; 0941.HK) is working on carrying out reforms to its profit sharing model for data services, and will begin separating wireless value-added service provider (SP) revenues from content provider (CP) revenues. The operator currently offers several revenue sharing models for its data services:
1. China Mobile takes 15% while the SP takes 85%. Under this model, China Mobile is responsible for providing service codes, while the SP is responsible for product promotion, customer service, and channel expansion.
2. A 30/70 split, with China Mobile responsible for the service code and product promotion;
3. A 50/50 split, with China Mobile responsible for the service code, product promotion, and customer service.
The new model will reportedly split revenues into four shares: China Mobile's 15%, 10% for its subsidiary service company ASPire, 40% for the SP, and 35% for the CP. Revenue sharing for CPs had previously depended on SP billing to a great extent; the new model allows CPs to participate directly in the revenue share. The source said that the new model will make China Mobile's direct management of content easier, and will help avoid situations in which the responsible parties for products with pornographic content cannot be found.
Keywords: regulation China Mobile wireless SP WVAS Aspire content provider CHL revenue share 0941.HK pornography
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