China Mobile Tenders for Fetion Tech Support Services
Shenzhen Stock Exchange, 4/16/13
In a public filing today, Beijing-based IT solutions provider Ultrapower Software (300002.SZ) revealed that China Mobile's (NYSE: CHL; 0941.HK) Guangdong subsidiary announced a tender for technical support and software development services for the operator's Fetion mobile instant messaging platform on April 12. The RMB 638 mln tender covers infrastructure services, wireless products, Fetion's SNS platform Fetion Tongchuang, and public services for a one-year period.
The RMB 311 mln "infrastructure services" portion of the tender covers product implementation and support services, platform and resource support services, and sales and channel support services. The software product development sub-heading of the project covers Mac OS X and Windows 8 clients for Fetion, a public platform, and a push platform.
The RMB 124 mln "wireless products" portion of the tender covers the development of voice and video communications, "Fetion Home Launcher," and Fetion handset ROMs for the mobile Fetion and Fetion HD apps.
"Fetion Tongchuang," an open platform for Fetion content, is China Mobile's Fetion-based SNS product. The relevant portion of the new tender, valued at RMB 119 mln, covers technology implementation and support efforts and software development for the product.
The "public services" portion of the project, valued at a total of RMB 83.92 mln, covers the platform for "Fei Dou" — a virtual currency payment platform, similar to Tencent's (0700.HK) "Q Coins," that China Mobile is preparing to introduce — as well as electronic channel products, an ad location platform, and content management and operation sub-projects.
Ultrapower said that it will take active measures to participate in the Fetion tender. The company has provided comprehensive development and support services for Fetion since China Mobile launched the product in 2007.
The filing also indicated that Ultrapower's wholly owned subsidiary Beijing D-Media Communication Tech and Guangdong Mobile have completed their discussions regarding Fetion systems development and support for the period from November 1, 2012 to June 30, 2013, and are preparing to sign the relevant contracts. Costs for the services provided during this period will total RMB 324 mln.
Editor's Note: For more background on this topic, please see "Update: China Mobile to Integrate Fetion, Fei Liao" MD 3/25/13 issue and "China Mobile Launches Fetion Public Accounts Platform" MD 4/05/13 issue.
Keywords: Guangdong Mobile China Mobile wireless virtual currency Fetion CHL 0941.HK Ultrapower 300002.SZ D-Media mobile IM IT services bidding procurement
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