About this Blog

The purpose of this blog is for my personal use. It serves as my personal diary as I investigate Chinese internet/gaming companies for investment purpose. If you have any comments or disagreement, please give me feedbacks.

Sunday, March 31, 2013

China's 3 Telecoms vs. Tencents, part 2. It doesn't look good for Tencents

One can find my last post on this subject here:

Well, it is not looking good for Tencents and its awesome killer application, WeChat. Today, the head of the Ministry of Industry and Information Technology (MIIT) of China gave hints that he is going to charge money for users who uses WeChat.

See the following article (in Chinese):

In the article, the minister of MIIT gave the typical politician double talk on the subject. He said that " It is reasonable for the Telecom operators to charge WeChat users money. But we have to make sure there is no monopoly situation and to protect Tencents."

MIIT is the foremost government agency for this area. Unless, Tencents can convince the Premier or the President, it is looking more likely that Tencents is going to be forced to charge users fees for using WeChat.

Note that it is entirely possible that the telecom operator can develop similar product but won't charge users money (or gave discount rate), it could meant the end of WeChat.

I am not predicting the end of WeChat. But Tencents is definitely in for some struggle.

For Sina, it could meant a great opportunity to cut into Tencents lead in this area.


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