ChinaRashtchy Research Report China Analyst:
Wireless Sector: Preparing for 3G
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Rashtchy Research Report
China Analyst: Wireless Sector: Preparing for 3G
The wireless landscape has been evolving over the past year. We expect this trend to continue in 2006, and we continue to believe that wireless sector has recovered and is going through a healthy period of modest growth before 3G services are launched.
Looking back at the performance of China MVAS players in 2005 reveals several takeaways:
SMS still remains a major revenue contributor
KongZhong, Hurray! and Tom Online dominate WAP and are best positioned for the transition to 3G
KongZhong and Tom Online are the most diversified players which should insulate them from some of the volatility associated with the strength and weakness of specific wireless segments in any given quarter.
At current valuation levels, Hurray! is our favorite pick among the China wireless players
Key News & Trends
NTES plans to set up $38M R&D center.
China Unicom launched Redberry service.
Piper Jaffray China Internet Index has increased by 35.1% YTD, while the NASDAQ is up by 7.0% YTD.
Our Top Picks This Week
Rashtchy: China Analyst: Wireless Sector: Preparing for 3GAttachment:
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Rashtchy, Safa firstname.lastname@example.org
Thursday, April 6, 2006