China Mobile expands Wireless City application

BEIJING, Apr 16, 2012 (Xinhua via COMTEX) -- China Mobile (CHL.NYSE; 00941.HK) has been expanding the application of Wireless City, a wireless service platform, in recent years, and the Wireless City has so far become operational in 274 cities across China, with more than 14,000 applications in service.

According to the largest mobile telecom operator in China, it has been capable of providing mobile Internet access in the majority of Chinese provinces, and it will gradually promote the application of mobile e-commerce.

Enthusiasm to investment in China's mobile Internet sector has made it the second largest "capital-absorbing" sector of the Internet industry next to e-commerce in China, said a Beijing-based IT consulting firm iResearch Consulting Group on Monday.

According to statistics released by China Venture, of the published instances of investment and financing in the Internet industry last year, 17 percent were in the mobile Internet sector, second only to the 36.8 percent in the e-commerce sector.

iResearch predicts that the investment and financing fever in mobile Internet will continue this year, because on the one hand, many mobile Internet firms are at the stage of accumulating users and have not made any profits yet, while on the other hand, investors have abundant capital and the outlook of mobile Internet attracts large amount of money.

Currently, general profit models for mobile Internet products and services include value-added service income, e-commerce income, and marketing activities income. iResearch believes that although the profit model has not become the crucial element that determines the life or death of a company, excellent profit prospects are still an important factor that attracts investors in terms of investment and financing.

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