MONTHLY REPORT

OCTOBER

LI Pin

Since this month the first three days are holidays, and I also had a one-week rest, so for this monthly report, it just includes three weeks. Following is my report.

SEARCH AND INDENTIFY THE PARTNERS

For this month, a mainly task is search the companies that possible be our partners, and after my searching, I identify the following companies or website we need make next step with them.

ISP:

China telecom
China Netcom
China mobile
China Unicom

PORTAL WEBSITES:

www.sina.com
www.sohu.com
www.163.com
Other: www.yahoo.com.cn, www.china.com, www.tom.com.

E-COMMERCE WEBSITES:

SMS:

GAME:

About the SMS website:

www.newplam.com, it is a company located in Beijing, it is mainly service to wireless net supporter like China Mobile and all the Mobile users. They support many value-added service for mobile users, like ring tone, mobile logo, sms, joke, game, news and other entertainment service like some test. They have many overseas investments, and the website design is nice. It is the WAP content provider of China Mobile and China Unicom.
www.linktone.com, , Linktone has emerged as an acknowledged leader in China's fast-growing wireless services sector. By developing a wide range of attractive content and applications for the paying end user, and by establishing nearly nationwide coverage through China's mobile operators, China Mobile and China Unicom, Linktone has enjoyed substantial, sustained growth in its user base and revenues.

Linktone's current focus on Short Messaging Services (SMS) allows potential access to virtually all of China's 185 million GSM subscribers, among whom use of SMS, and familiarity with its functions, continues to increase rapidly month to month. Linktone's consumer services focus on entertainment, messaging and personalized information.

Although SMS remains Linktone's core focus, the Company has developed offerings for the mobile operators that include WAP over GPRS, WAP over CDMA, EMS, MMS, location-based and cell-broadcasting content and applications, as well as a number of products, scheduled for release later this year, for China Mobile's new 2.5G GPRS network.

Linktone's headquarters are located in the cutting-edge cosmopolis of Shanghai, and the company maintains regional offices in Beijing, Guangzhou, Fuzhou, Qingdao and Xian.

www.byair.com.cn, it is the first wireless SP in China, and it was established by an American SP leader company (I just don’t know how to translate the American company name). It provides sms, logo and ring tone, and also focus on developing mobile game and other entertainment product. And it provide mainly economic and sports news. And it is also the partner of the Korea and Japan network operator. The company,’s headquarter in Beijing, and make shanghai, Guangzhou as sub centers.
www.365do.com, it is a leader provider of mobile value-added service also. It is provide ring tone, logo, game and sms. And this company developed the mobile stock exchange system successfully. And it is mainly partner of China Mobile. And company located in Beijing.
www.any8.com, company located in Beijing, and it has the good service in mobile ring tone, logo, sms and mobile games. It is a partner of China mobile also. And we can see in the rank, it is higher than other SP.
www.starvi.com, it is company focus on games, but in their website also provide many mobile logo, ring tone and sms. Their goals are be the #1 wireless game provider and #1 Internet game provider and maker. They have support from Sansung, LG, and also the famous Movie star Gong Li put the investments in the company. And this compant has over 800 movie star and singer and sports star Internet source.

And the last website is not a China website, it is Singapore company, www.relaxz.com, but it is not just for Singapore users, but for China, Taiwan, Hong Kong, and Philippines Chinese users. It is mainly provide the games. Globe here is their partner.

And the important is the PORTAL WEBSITE, they are also the leader in SMS and game. So for us, the portal website are much important, not only they have more service, also they have many users.

ABOUT A SMS RANK

I find there is a rank of the SMS in the China Mobile website( all the rank website are partners of China Mobile), it is not include all the website that provide SMS service, but include the mainly website already. Here is the top 10 rank of last month.

For ring tone:

1. Tom 2. Sina 3.Sohu 4. Any8 5. 263

6. netease 7.365do 8. linktone 9. byair 10. Newpalm

For logo:

1. Sina 2. Any8 3. 263 4. Linktone 5. Tom

6. netease 7. Sohu 8.Byair 9. 365do 10. newplam

For SMS:

1.Sohu 2. Sina 3.netease 4.any8 5. 263

6. Tom 7.newplam 8. byair 9.365do 10. Linktone

VALUE ADDED SERVICE FOR MOBILE

This month I searched the value added service for mobile in China.

All the service pay by your mobile, the payment bill will show on your monthly mobile bill.

First in SOHU, there services are the following:

1. NEWS. It includes social news, entertainment news and stars news etc.. You can order the news through message, you can ask SOHU send you the news when you make the order, you also can ask them send you the news when big news coming. 0.1 Yuan/ per news.

2. Relax or Entertainment. This include joke, weather forecasting, love test, logic story, and your constellation’s destiny forecasting. Joke just they can send you a small joke by message, love test just some like IQ test, but just they send you a question about love, and you choose the answer, and follow your answer, they will give you a evaluation. Logic story also like this way, follow the story, you choose your answer. 0.1 Yuan/per message.

3. Sport. Include sport news, JiaA, NBA, World cup, and Europe league etc..

4. Lottery. Because the Lottery in China is very hot. Because the cash prize is very high, so many people buy lottery. This service include lottery analysis etc..

5. English studying. This studying include TOFEL, GRE, GMAT, IELTS and English grammar and English joke. This studying just by message, and you also can order a monthly studying, so SOHU will send you the studying file by message day by day, and from low level to high level.

6. Economic. Include economic news, and other like stock analysis.

7. Game. Include forecasting your destiny, fighting game, intelligent game, and also include more players’ games.

8. Short message. This means, there are many nice message list on line, you just choose the code of the message, and send it to your friend mobile. 0.2 Yuan/ per message.

9. Greeting Card. You can send your friend Greeting Card to their Mobile. This card is a three in one card, it includes a nice picture, nice music and nice words message. For Nokia 2.80 yuan/per, for Siemens 3.30yuan/per.

10. Magic love letter. You can order magic love letter to your lover. So SOHU will send her mobile a nice love letter every day. And every Friday will send her a greeting card by mobile and Saturday send her mobile a picture. 20yuan/per month.

11. There is a another service similar as the short message, you also choose a message from the list, and send it to your friend mobile, but when your friend receive your message, it can direct show on his mobile, not like before just a alert to him and tell him there is new message, this way means, even he doesn’t want to read your message, but he has to. 0.5yuan/per

12. Mobile Email. This need you have a email address of SOHU email. This include Mobile alert when you get a new email; Read your email by mobile, when you get a new email, you can give a command to SOHU, so they will send your mobile the email by message; Write Email by your mobile, and send the message to SOHU, than SOHU will make your message as a email. 0.1 Yuan / per message.

13. SOHU picture. Include logo and screen saver picture.

14. SOHU date. You can send your profile to SOHU, and you also can see other people profile there, and you can find your lover there. And SOHU will help you to make a date.

15. SOHU community. It is similar as a chart room. You can chat by your mobile in a community.

16. Alumni record. Actually for most teen ages, we like this very much. We can create our class in Internet, so that will easy for every classmate to contact with each other. Like me now in Philippines, how can I contact with my classmates before, I just go to our alumni record, find our class, and leave my word on our BBS. Now you can use your mobile send message to your BBS, so if you haven’t time, you need not go to internet, just use mobile send message is ok.

IN Sina, just similar as SOHU, but they have a SMS baby, it is means you can have a baby in your mobile, but first you should find another mobile user from SINA be the baby MAMA, and you should make the baby growth up, just like a game. And in the game, there are more games, include World cup game, joke game, and IQ game.

IN NETEASE, just plus a service you can have a pet on your mobile, and you make it growth up and you can teach your pet play game s, some like Sina SMS baby.

STUDYING OF CDMA

(Code Division Multiple Access)

CDMA is a "spread spectrum" technology, which means that it spreads the information contained in a particular signal of interest over a much greater bandwidth than the original signal.

When implemented in a cellular telephone system, CDMA technology offers numerous benefits to the cellular operators and their subscribers. The following is an overview of the benefits of CDMA.

1.	Capacity increases of 8 to 10 times that of an AMPS analog system
2.	Improved call quality, with better and more consistent sound as compared to AMPS system
3.	Simplified system planning through the use of the same frequency in every sector of every cell
4.	Enhanced privacy
5.	Improved coverage characteristics, allowing for the possibility of fewer cell sites
6.	Increased talk time for portables
7.	Bandwidth on demand

There are now different variations, but the original CDMA is now known as cdmaOne.

As of September 2002, there were 127 million CDMA users worldwide, with 55 million of these in the USA

By the end of September, there are 4 million CDMA users in China. And in China, China mobile manage the GPRS, and China Unicom manage the CDMA. CDMA and GPRS will be the next emphasis of their competition. CDMA and GPRS both belong the 2.5G. From GSM develop to GPRS is easy, just need small investment to change some equipment and develop some equipment. But from GPRS develop to 3G, need big investment to change so different equipments. From GSM develop to CDMA, need a big investment to change the different equipment, but from CDMA develop to 3G, just need small investment to develop the equipments and change some.

Just last week, China Unicom gave a big order to 6 companies especially US companies to buy the equipment of CDMA 1x. And plan when they finish CDMA 1x, they can support 30 million CDMA users in China.

(For more information see training site studying page)

BIG NEWS

1. October 9,2002, China Mobile Communications Corp., the world's largest mobile carrier, has launched a new service allowing its subscribers to use their mobile phones to exchange pictures and music files.

"China Mobile believes that, on the basis of successful SMS applications, MMS will realize flourishing development," the company said in a statement posted on its Web site. It said MMS began commercial operation on Oct. 1, but wasn't formally announced until Wednesday.

Subscribers will pay 0.9 yuan ($1=CNY8.28) to send one multimedia message, as compared to the CNY0.1 they now pay to send a text message. China Mobile said it would offer a "send two, get one free" promotion initially, making the effective price CNY0.6 a message.

China Mobile didn't offer any forecasts for usage of the MMS service. It had previously said it expects its SMS traffic to reach 30 billion messages this year, up from 18.9 billion in 2001.

China Mobile is also cooperating with several Internet companies, including Sina.com , Netease.com Inc. and Tom.com Ltd. . They will attempt to encourage use of the service by selling users things like electronic greeting cards and animations that can be sent via MMS.

State-owned China Mobile Communications is the parent of China Mobile (Hong Kong) Ltd. (NYSE:CHL - News) , a listing vehicle that holds 21 of the company's provincial units.

FROM YAHOO NEWS.

2. about SOHU.

SOHU.COM Achieves US GAAP Profitability In Q3, 2002

http://biz.yahoo.com/prnews/021023/hkm007b_2.html

Sohu.com posts tiny profit on ads, mobile services

BEIJING, Oct 22 (Reuters) - Chinese online portal Sohu.com (NasdaqNM:SOHU - News) posted unexpected third-quarter profits on Tuesday as revenues from advertising and fee-based mobile services pushed the firm into the black a quarter ahead of schedule.

The Beijing-based company turned a net profit of $112,000, or nil cents per share, compared with a loss of $3.1 million, or two cents per share, in the third quarter of 2001. The year-ago period was weighed down by acquisition-related writedowns.

Sohu, which literally means "search fox", said it expected to be profitable for the fourth quarter of 2002 and was on track to become profitable for the entire 2003 fiscal year.

http://biz.yahoo.com/rc/021022/tech_china_sohu_2.html

My studying on SOHU:

SOHU announce their finance report of Q3, they became profitable already, it is good news for Chinese website companies.

The points are following:

US GAAP profitability of US$112,000 achieved well ahead of schedule.

      Non-advertising and advertising revenue contribute to a balanced, diversified 51%-49% revenue mix ahead of schedule.

Advertising revenues grow by 52% year-on-year to US$3.7 million, reflecting widening domestic client base.

Non-advertising revenues soar 237% year-on-year to US$3.8 million through sustained conversion of SOHU's user base into consumers.

Domestic advertising clients provided an all-time high 84% share of advertising revenue and for the second consecutive quarter dominated SOHU's top 10 advertisers list. Advertisers included leading companies such as TCL (computers), Capitel (handsets), Taiweishi (electronics), Huanqiu (sporting products), Yangshengtang (consumer products), and the Everbright Bank of China.

Non-advertising revenues from consumer services, consisting mainly of e-subscriptions (premium services and short messaging) and e-commerce sales, contributed 51% of total revenues in Q3 2002, overtaking advertising revenues for the first time as the largest source of revenues. Through e-subscriptions, SOHU is monetizing its vast user base of over 50 million registered users and leveraging existing products such as email, alumni club and news.

And value added service for mobile is around the 60% of the total of non-advertising revenues. That mainly includes Short message, mobile picture, ringtone, and mobile game.

(More information see training site news page)

3. China Unicom.

October 9, 2002, China Unicom started their business in shanghai stock exchange, the beginning days, the stock goes is not well. , because this time china Unicom sell the stock for get the investment to develop their CDMA in the next year, that make many people haven’t the confidence. Because this year the CDMA loss benefits part, so many people don’t believe next year China Unicom can earn money from CDMA.

China Unicom's Parent Spends CNY9.8 Billion On New Network Equip

HONG KONG -(Dow Jones)- China United Telecommunications Corp., the parent company of Hong Kong-listed China Unicom Ltd. , will be spending CNY9.828 billion to buy network equipment from Motorola Inc. (NYSE:MOT - News) , Nortel Networks , L.M. Ericsson Telephone Co. and Lucent Technologies Inc. (NYSE:LU - News) .

China Unicom said late Monday the Motorola contract was worth CNY2.9 billion, the Lucent one CNY3.54 billion, the Nortel one CNY2.1 billion and Ericsson's was valued at CNY1.288 billion

China Unicom's parent is buying CDMA telecommunications equipment through joint-venture companies or cooperative companies of these international telecommunication equipment suppliers for the second phase of its CDMA project.

4. ABOUT NASDAQ CHINESE WEBSITE STOCK

This month for Chinese website stock, first both of them went down, and after SOHU announce its finance report of Q3, all went up again, and up very high. Like SINA from 1.85 at the beginning this month, now up to 2.92, also SOHU and NTES, they are up to 3.85 and 4.29.

5. International news, About Orange gets the first permission to sell the Microsoft smartphone 2002 in the world.

PATNER LETTER

For this month, another mainly task is prepare a partner letter for our partner. So did it already, and ask Suzanne check it first, then, she gave me some comments and made some change. After that, I show rose the letter, and she also gave us some comments and made some change. Then we discuss the letter, at last, we prepare one, but until now I did know if you already read it or not, and I am ready to translate it into Chinese.

ABOUT HTML AND TRAINING SITE

This month, a important thing I did is I made training site, now I already can use HTML make my simple training site, and I can update my information faster, so now I can easy share my information to our group member, especially share then to Suzanne and also easy show you what I did.

WEEKLY MEETING

This month, I feel much better in weekly meeting, first we got a new member, and then now I know how to prepare for the weekly meeting. And I have more confidence attend the weekly meeting. I like the way of our weekly meeting now.