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Tencent to Optimize WeChat Signaling Over 2.5G Network

Tencent Tech, 4/10/13

On the evening of April 9, the development team for Tencent's (0700.HK) WeChat (Weixin) mobile messaging application announced via its Sina Weibo microblog that it had begun planning efforts to optimize WeChat's use of 2.5G networks, and is currently working with telecom carrier operations and maintenance divisions to address solutions for WeChat signaling issues.

The posting noted that there remains a large number of 2.5G mobile data users in China, particularly on China Mobile's (NYSE: CHL; 0941.HK) network, and that the proportion of users who have migrated from 2.5G to TD-SCDMA 3G connectivity remains low. 2.5G networks are ill-equipped to handle large signaling loads. This is considerably less of an issue on China Telecom (NYSE: CHA; 0728.HK) and China Unicom's (NYSE: CHU; 0762.HK; 600050.SH) networks, which have higher proportions of 3G subscribers. Tencent expressed the hope that it will be able to develop technology to dynamically and intelligently reduce signaling frequency on 2.5G networks in the near future in order to resolve network overload issues.

Editor's Note: Mobile operators - particularly China Mobile - have accused WeChat of generating signaling traffic incommensurate with the data revenues it generates for operators. Tencent founder and CEO Pony Ma previously stated that the issue chiefly affects traditional 2G and 2.5G networks.

Editor's Note: For more background on this topic, please see "MIIT Coordinates Telco Plans to Charge for WeChat" MD 4/01/13 issue.

Keywords: Pony Ma mobile data wireless Tencent 0700.HK WeChat mobile IM

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The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

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