Tencent Denies Rumor of Charging Fees for WeChat
CNR, 3/14/13
A source inside Tencent (0700.HK) revealed that China's Ministry of Industry and Information Technology (MIIT) convened meetings between the Shenzhen-based internet company and China's three major telecom operators on February 27 and March 11 to discuss the topic of Tencent's WeChat (Weixin) mobile messaging application and its use of operator network resources. The telecom operators are rumored to have discussed WeChat OTT services, as well as the possibility of monitoring or charging for the services in the future.
BiaNews quoted a Tencent spokesperson as saying that "outside reports of WeChat charging fees are pure rumor."
WeChat released version 4.2 of its client in July 2012, adding video chat functionality to the service. The new feature was seen as a challenge to telecom operators' voice services. Senior China Mobile (NYSE: CHL; 0941.HK) executives have since said on several occasions that WeChat has had an impact on the operator's services.
Tencent and Hong Kong-based operator PCCW Mobile previously introduced a discounted WeChat data plan priced at HKD 8 per month.
Editor's Note: For more background on this topic, please see "China Mobile Chairman: Skype, WeChat Pose Threat to Telcos" MD 2/28/13 issue, "Rumor: China Mobile, Tencent Discuss Traffic Usage, Revenue Share" MD 12/28/12 issue, and "PCCW Mobile, Tencent Partner on WeChat Data Package" MD 2/04/13 issue.
Keywords: business model China Mobile wireless Tencent MIIT CHL voice services 0700.HK 0941.HK WeChat mobile IM
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