![]() ![]() If China Mobile gets too worried about WeChat, it can find ways to either limit access or even block the service completely for its huge subscriber base, which accounts for two-thirds of China’s mobile market. So the question becomes: how is this looming showdown between China Mobile and Tencent likely to end? In my view, Tencent may have no choice but to form a partnership with China Mobile by signing a revenue-sharing agreement. ( Chinese article) All of this sudden movement in the mobile SNS space reflects the very real fact that everyone sees this kind of service as a very important area for future development, perhaps even someday surpassing traditional voice services. Meantime, media are also reporting that China Mobile has signed a new tie-up with yet another mobile SNS service called Line, a Japanese product which has similar functionality to WeChat. But Fetion is rapidly losing business to WeChat and other more advanced services, leading media to report in November that China Mobile was thinking of either scrapping the tie-up completely or buying out Fetion’s owner. I’ll openly admit that I’m one such fan of WeChat, having opened an account in the last 6 months and now using it for much of my mobile messaging.Ĭhina Mobile previously had a partnership with a service called Fetion, also known by its Chinese name of Feixing, which offered similar though more basic mobile-based instant messaging services over the Internet. ( Chinese article) The comments by China Mobile President Li Yue appear to be a direct attack on WeChat, which has rapidly risen since its launch just 2 years ago to recently pass the 300 million mark in registered users.Ĭhina Mobile’s biggest concern is that it is rapidly losing SMS business - one of its biggest revenue sources - to WeChat, which lets users send messages for free by routing all of its traffic over the Internet. ( previous post) While Sina looks for a partner, China Mobile has come out with its own verbal attack against Tencent, which it says is behaving like a rival telco. ![]() I wrote earlier this week about how the rapid rise of WeChat has caught the attention of leading microblogging service Sina Weibo, which is now looking for a strategic partner to help it fight back against Tencent. But in this new tussle, Tencent needs to move very carefully since China Mobile is not only a competitor but is also in the powerful position of being able to limit or even completely cut off its more than 700 million mobile subscribers from access to WeChat, more commonly known by its Chinese name of Weixin. That’s my interpretation of the situation, following a recent war of words that has broken out between Tencent and China Mobile (HKEx: 941 NYSE: CHL), China’s dominant mobile carrier. Tencent Cloud has 3,147 patent applications and 1,105 patent grants on cloud computing, both ranking top in China, according to Qiu.It seems that Sina (Nasdaq: SINA) Weibo isn’t the only company worried about the rapid rise of WeChat, the wildly popular mobile social networking service (SNS) operated by leading Internet company Tencent (HKEx: 700). Tencent is a heavyweight in China's cloud computing sector. Qiu, also president of Tencent Cloud, said running infrastructure of a large scale was the first challenge faced by cloud service providers like Tencent before they could offer high-speed, stable and secure services. Tencent has also recently become China's first company with peak bandwidth reaching 100 trillion bytes. Qiu Yuepeng, vice president of Tencent, made the announcement at the Tencent Global Digital Ecosystem Summit held in Kunming, capital city of southwest China's Yunnan Province.Īccording to Qiu, Tencent is now one of the world's top five companies with more than 1 million servers. Ĭhina's Internet giant Tencent said Tuesday that the total number of its servers had exceeded 1 million, the first Chinese company to do so. Tencent headquarters in Shenzhen, Guangdong province.
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