3G to drive wireless VAS in China

CHINA: Findings from a new study by Juniper Research reveals that the Chinese market for Wireless Value Added Services (W-VAS) will expand from $15bn in 2008 to $21bn in 2012 boosted by the launch of 3G Services.

Currently, W-VAS revenues in China are primarily being generated from SMS and ring-back tone services operating on 2G and 2.5G platforms, but the forthcoming launch of 3G will see new areas of growth with particular emphasis on music, games and streamed video. The report suggests that by 2012 3G will account for some 19 per cent of total W-VAS services.

This emerging sector offers both new and existing players with a significant opportunity and an eventual large pool of potential users. However, identifying where these opportunities actually exist in the value chain and how to access them is vitally important. Foreign participants need to know the best routes to market including who to partner and which portals to use as well as the appropriate business models to deploy. The fundamentals of Intellectual Property protection are also key, as well as an understanding of the various processes and procedures necessary to navigate through the regulatory system.

The report author, sector analyst Dr Elisa Kuang, said that “Providers of 3G applications and content have a unique opportunity to tap into this vast new market but are advised to carefully craft coherent market entry and development strategies – ones that appreciate China’s unique economic culture and business systems, an emerging economy in transition”.