Sina next great new frontiers – e-commerce and 3G

One can find my last article talking about WVAS (Wireless Value Added Service) here:
http://chinese-net-gaming-stock.blogspot.com/2009/04/date-ntes-had-been-waiting-for.html

Whenever there is a new revolution, people usually fixated their view on the thing they can see. But in most cases, it is the companies that deals with the content and information that comes out ahead.

During the PC revolution, people talks about Gateway, Dell, HPs, but it is Microsoft that become the symbol of that era.

During the internet revolution, people can see what Cisco is doing. But it is Google that symbolize that era of technology development.

Today, as we going into 3G, everybody talks about the carriers such as China Mobile or the hardware maker such as Nokia, but most likely, the real winner is the content providers. In this case, the real winner might be some WVAS player.

In the following article, the CEO of SINA talks about what areas will SINA emphasize in the next 10 years:
http://news.cnyes.com/stock/dspnewsS.asp?fi=\NEWSBASE\20090414\WEB2181&vi=33865&date=20090414&time=16:20:40&pagetype=usastock&subtype=home&cls=usastock_totalnews

First, he talks about the state of 3G in China. Before, China Mobile was a virtual monopoly. But now, there are three big carriers. As more and more Chinese uses 3G and its contents, SINA, as a WVAS provider, will greatly benefit.

Second area of great potential growth is in the area of ecommerce. Right now, no portals make money in ecommerce. Sina’s online store is not doing great either.

But ecommerce is the wave of the future. Right now, Sina is busying develop infrastructure. There will be explosive growth in ecommerce.

As far as I know, Sina is the only portal that openly talks about the potential of ecommerce. It does make it natural for Sina to become the amazon.com of China.

Sina correctly selected its two great growth areas. But it also makes its recent purchase of FMCN so confusing. Situation in China are changing so fast that 3G and ecommerce has arrived. They are waiting for the right company to take advantage of. But none of them have much to do with outdoor advertising.

Gobbling up FMCN take attention away from Sina. Sina shall be concentrating on the next two great potential growth areas.