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China Mobile Seeks Mobile Game Content Providers

Sohu Tech, 3/09/10

China Mobile's (NYSE: CHL; 0941.HK) gaming product base announced on February 25 that it is seeking partnerships with mobile game content providers. China Mobile is seeking providers that have extensive experience in mobile gaming platforms or other platforms. China Mobile has asked that potential partners possess independent development capabilities and intellectual property, as well as a successful brand. Partners should be able to provide both single-player and multiplayer mobile games. The application period for the program ends on March 22.

For single-player games, China Mobile will provide online channels, a service-related platform, marketing and customer service, while the partners will provide content. China Mobile and the partner will split revenue from game fees 50-50.

For multiplayer games, China Mobile will provide online channels, a service-related platform and one customer service line, while the content provider will provide the gaming content, marketing and advertising, as well as a secondary line of customer service. Revenue will be split between China Mobile and the partner 30-70, with a revenue split of 15-85 in the initial stage of cooperation.

Content providers will draft game fees to be submitted to China Mobile for approval, which will have final say over payment methods and pricing plans. Content providers will be able to select from a number of fee methods (including trial with optional activation fees, pay-per-play, pay-per-month, monthly package plans and virtual items fees), with a primary focus on the trial with optional activation method (which can be done via SMS and GPRS).

Separate regulations have been drafted for both domestic and international content providers wishing to apply. International content providers must have been registered at least five years with no less than USD 500,000 in registered capital (except for publicly listed companies), have developed at least 30 single-player games and currently produce no fewer than 10 single-player games each year. Domestic mobile game developers must have been registered for at least three years, have no less than RMB 500,000 in registered capital, already developed at least ten single-player games or one multiplayer game, and have a current annual production volume of no less than five single-player games or one multiplayer game. Domestic online PC game content providers must have been registered no less than three years, have registered capital of no less than RMB 10 mln, and operate at least two online PC games, at least one of which must be self-developed.

Keywords: revenue share mobile gaming China Mobile wireless content provider CHL 0941.HK

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The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

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