Analysys International Says China's WAP Market Reached 1.35 Billion in Fourth Quarter 2005

Analysys International, a leading Internet based provider of business information about technology, new media and telecom industries in China, says that in the fourth quarter of 2005, China's WAP market showed growth from recovery and the entire market size reached RMB 1.348 billion, increasing 8.8% quarter over quarter, in its recently released report China WAP Market Quarterly Tracker Q4 2005.

According to the report, from October to December of 2005, China Unicom's WAP revenues continued to decline. Its market size declined from RMB 227 million in Q3 to RMB 184 million in Q4, decreasing 19%.

Analysys International says, in the third quarter of 2005, China Unicom increased its CDMA subscribers' Internet access service fees, which brought short-term growth of income. However, as the costs of Internet accessing increased, users reduced their online time, and the results began to show in the fourth quarter. The decline of China Unicom's WAP business hindered the growth of the entire WAP market.

Contrary to China Unicom, China Mobile's WAP revenues grew by 32% in the fourth quarter of 2005. However, due to some SPs' self-consumption behavior, the growth of WAP revenues was to a certain extent limited.

In the fourth quarter of 2005, China Mobile began to clean off silent subscribers of WAP services. However, some SP kept charging service fees from silent subscribers by taking advantage of system holes. These activities contributed some revenues, but they were bad to the healthy development of the WAP business.

Although the entire WAP market showed growth in the fourth quarter of 2005 in China, Analysys International says China's WAP market reached the development bottleneck.

This subject is further discussed in Analysys International's research report China WAP Market Quarterly Tracker Q4 2005. For more information, please check the website: http://english.analysys.com.cn .

About Analysys International

Analysys International is the leading Internet based provider of business information about Technology, Media and Telecom industry in China. We provide data, information and advice to 50,000 clients worldwide representing 1,500 distinct organizations, deliver over 150 consulting engagements a year, and hold more than 20 events that draw in over 8,000 attendees. Our clients include executives from companies as technology vendors, vertical information technology users, as well as professionals from professional service companies, the investment community and government agencies. Our mission is simple and clear: we help our clients make better business decisions. For more information, please visit our web site at http://english.analysys.com.cn .

For more information, please contact:

Jessica Wang

Overseas Media Manager

Analysys International

Tel: +86-10-6466-6565 x394

Fax: +86-10-6466-7102/7103

Email: Overseas@analysys.com.cn

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