A week in tech

China

Internet
• CDC Corp., the software and technology services company formerly known as China.com, reported a 24-percent growth in its revenues from CDC software and a 27-percent increase in online game users compared to the same period the previous year. During the first quarter, China.com’s online game, Yulgang, went beyond 330,000 peak concurrent users, a 27-percent growth from the previous quarter. Average concurrent users per day totaled 182,000 and registered users totaled 22 million. Average virtual merchandise sold per day amounted to 82,000 units. China.com also increased its shareholding in 17 games to 100 percent in a bid to boost the growth of its online gaming business.

• eLong, a leading online travel service provider in China, reported sales revenue of $26.3 million, representing a 57-percent increase over the previous year. The company ascribes this growth to an increase in revenue from hotel commissions and air ticketing. Despite this, elong still posted a net loss of $7.7 million for 2005, compared to a net loss of $2.2 million in 2004.

• China launched its first copyright music website, called Aigomusic.com. The site allows users to download and also receive music via other mobile platforms such as mobile phones and PDAs. The internet company is reputedly the only one in China granted the rights to sell music online by virtue of the agreements it signed with Sony BMG, EMI, Universal Music, and Warner Music. Other than music, Aigomusic also has copyright to Music Videos (MVs), which are also available for download.

• UTStarcom announced its signing of a deal with China Netcom, which will allow the Chinese firm to use its internet protocol television technology in Harbin in northeast China. UTStarcom did not disclose the amount paid by China Netcom but it disclosed that the deal could be the largest deal ever inked yet in China. UTStarcom's technology lets network operators like China Netcom sell and deliver television over Internet Protocol networks.

Mobile/Wireless
• A report from Analysys International indicates that there will be 78 million 3G users in China by the year 2008. The report from the internet-based provider of technology business information said that telecom operators are set to begin the construction of 3G networks and purchase of 3G devices as soon as 3G licenses are issued in China in the second half of this year. The report also says that some 440,000 users will be using 3G mobile devices by the end of 2006 while half of the new mobile telecom subscribers will be 3G users by 2008. Analysys International states that out of this figure, 3G subscribers will form about 13.7 percent of the total mobile telecom subscribers in China in 2008.

Media, Entertainment and Gaming
• Cgogo Technology announced the launching of the Mobile Beijing Technology Newspaper, a mobile newspaper with its own independent domain name on a WAP network. Cgogo and Beijing Technology Newspaper established the mobile newspaper. It is considered the first-ever mobile newspaper focusing on technology. According to the company, the Mobile Beijing Technology Newspaper is to be based on Cgogo’s Mobile Search WAP site, and is expected to provide extensive coverage for domestic users. At present, the mobile newspaper is available for free to mobile subscribers.

• A study called the Survey on the Development of China Media Industry 2006 disclosed that China's media industry achieved output of Rmb320.5 billion ($40 billion) in 2005, which represented a growth of 11.9 percent year-on-year. The survey indicated that print publications accounted for 36 percent of the total output of the industry, putting it at No. 1 in all market segments of the industry. Occupying the slot from No. 2 to No. 5 in terms of output value were TV advertising, mobile short message services, revenue of advertising companies, and magazine publishing. With a sales revenue growth of over 40 percent, mobile short message climbed from No. 6 in 2005 to its current No. 3 position. The study explains the present position of newspaper publishing in No. 6 as caused by the sluggish growth in newspaper ads.

Hardware
• The Haier Electronics Group disclosed that it posted a net loss of HK$432.9 million ($55.8 million) for 2005, compared to a profit of HK$119.4 million ($15.3 million) in 2004. The company disclosed that its revenue for 2005 saw a decline to HK$4.9 billion ($631.8 million) from HK$5.8 billion ($748 million), ascribing its performance to the intense competition in the mobile phone business.

Telecommunications
• China Telecom announced a net profit of Rmb5.9 billion ($735.9 million) in the three months ending last month. With the announcement, China Telecom said it added 2.6 million fixed lines in the three months ending last month. The company announced that broadband growth was strong, adding 2.1 million customers to a total of 23.1 million.

• China Mobile reported its first-quarter results, with its net profit posting a 27.6-percent climb to Rmb14.3 billion ($1.7 billion) from Rmb11.2 billion ($1.3 billion) a year ago. Analysts took note of its operating revenue, which went up by 18.5 percent to Rmb65 billion ($8.1 billion) even if it missed the analysts’ forecast. In another development, China Mobile is reportedly offering $4 billion for Millicom International Cellular, a Swedish company that operates wireless phones in developing nations. If China Mobile acquires Millicom, it would give the company a presence in 16 nations in Latin America, Asia and Africa.

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