Jego Innovation of limited level

Absrtact: In the face of micro-credit and other Internet business threats, China Mobile (0941.HK) in the reconstruction of a flying letter, but also in a different way self-revolution. June 1, China Mobile, a network of phone and instant Messaging application software Jego in Apple, Android and other smart phones flat

In the face of micro-credit and other Internet business threats, China Mobile (0941.HK) in the reconstruction of a letter, but also in a different way self-revolution.

June 1, China Mobile's network of phone and instant Messaging application software Jego in Apple, Android and other smartphone platform applications store officially online, free calls and type of micro-letter product features, immediately stimulated the industry's sensitive nerves.

"The decline in voice revenue relative to the data business is an obvious trend among global operators." "June 3, a mobile internet industry personage told reporters that the face of micro-letter and other OTT business impact, operators and their being overturned, not as leather their own lives."

However, the Jego business was launched by China Mobile International Limited, a wholly-owned subsidiary of the company, and some of its core functions were restricted in the mainland. Internet telephony has a strong alternative to the traditional voice service of operators. "The mobile internet source said in mainland China, on the one hand, the country's VoIP regulatory policy is not allowed, on the other hand, as the largest source of income for the mainland market, China Mobile must also consider the consequences of both hands," if this is a revolution, then it is only a test of the nature of water. "

Jego Innovation of limited level

Users with Jego are free to make voice calls, send instant messages, and call other mobile numbers and landline phones at ultra-low prices.

June 3, the reporter downloaded the App store in the application, and associated with the Address book, found that their contacts have been a lot of the beat. Click on one of the contacts, the software will provide direct phone, Jego phone, video phone, send messages and other options.

It's easy to relate it to Microsoft's Skype, as well as the OTT, line, and other businesses.

Ott, a sports vocabulary derived from basketball, has recently been very hot in the communications industry. It means that some Internet companies use operators ' communications networks to bypass operators and develop their businesses. This has caused a great impact on the traditional telecom business model, operators in the increasingly strong OTT business, there is a simple pipeline provider of the possibility, but not to obtain greater commercial value and business ownership.

At home, the conflict between China Mobile and Tencent in micro-credit business is the most typical game. Micro-credit in less than 2 years to develop more than 300 million users, and directly divert the operators of some of the SMS and voice business, and thus incur the operators and regulatory authorities attach great importance to. China Mobile's president, Li, first expressed dissatisfaction with the micro-letter in a "Mobile developers ' Conference" held in Guangzhou last December 5, saying that it "occupies a very large resource for the telecommunications of its operators". China Mobile's subsequent statistics on the media revealed that the micro-letter only brought 10% of mobile data traffic, but it consumed 60% of the signaling resources.

"OTT business has impacted the operator's voice and SMS revenues. "A communications equipment trader told reporters that this part of the business is now the operator's cash cow, so the operator is now OTT business is both love and hate." China Mobile's 2012 annual report shows that its voice revenue ratio, although falling from 69% in 2011 to 65.7% in 2012, shows some success in its strategic transition, but the voice business remains the top-most-dominant business in its revenues.

Reporters and several jego users of the test call found that the quality of their voice is good, but compared to the traditional voice calls, there are obviously a lot of noise. There is still a certain loss of packet phenomenon. "said the equipment business people mentioned above."

In addition to the mainland market, Jego also allows users to directly dial other mobile phone numbers and fixed telephone, the price is relatively low. For example, to the mainland of China and Hong Kong, only 0.022 USD per minute and 0.023 USD/min respectively. In addition, China Mobile also offers a package plan ranging from USD 5.79 to $15.99. The tariffs are much lower than the traditional mobile tariffs of China Mobile, comparable to Skype.

But this function is not available in mainland China. Liang, a well-known communications expert, told reporters that this was mainly restricted by domestic regulation of VoIP, "in addition to a few pilot areas, software to telephone network phone has not landed, is a policy area."

Moving targets

"The Jego function is similar to the Japanese social application line. "As of May this year, line has more than 160 million users worldwide and is currently the most popular application in Japan," said the device trader. According to the latest earnings from the app's developers, line revenues reached $58.9 million trillion in the first quarter of this year, up 92% from the previous quarter, with 80% coming from the Japanese market.

Compared with micro-letter, Jego software and software users of direct free call is also a major breakthrough. "If the Jego user is large enough, it will replace part of the operator's own business." Liang said that this is also the current Jego part of the core functions in the Chinese mainland is a major factor.

"Jego's product design, the target user group is overseas users, especially in China and Hong Kong, mainland China have close contacts." "The mobile internet people mentioned above told reporters that this part of the market has been a Skype, line and other education mature," do not rob means to give up.

And China Mobile chose to develop and launch this business from China International, and it also has the nature of test water.

Established in December 2010, the China-migration international is one of the results of the specialized operation. For the professional operation of the strategy, up to now, China Mobile has set up a terminal company, international corporate finance companies, enterprises, companies, and Internet companies, and is planning to establish a network of companies and shared services Center. Among them, China-migration international mainly through the use of Chinese mobile resources, for the global development of international voice, mobile roaming, Internet, multinational corporate customer service and international value-added services. China Mobile's 2012 annual report shows that international bandwidth for China International has grown nearly 4 times times more than two years ago.

"Operators have resources, but the success of similar internet businesses depends largely on their development and marketing teams." Liang that the previous operators do not lack a bright product, but because in the promotion of rhythm, marketing mistakes, often miss the opportunity or lag behind the Internet companies related products.