chinadotcom corporation Enters into Joint
Venture With CellStar, One of the Largest
Mobile Handset Distributors in China's Wireless
Market
PR Newswire - September 26, 2000 23:29
Fifth WAP Initiative to Market, Distribute and Develop Wireless Applications
Rounds Out chinadotcom's Multi-Pronged Wireless Strategy
HONG KONG, Sept. 26 /PRNewswire/ -- chinadotcom corporation
(Nasdaq: CHINA) (www.corp.china.com), the leading pan-Asian integrated
Internet company, in its continuing commitment to develop the rapidly growing
wireless market in China, announces a "clicks and mortar" joint venture with
CellStar Corporation (Nasdaq: CLST), one of the world's leading distributors
of wireless communications products and one of the largest handset distributors
in China. This latest strategic alliance is the fifth in 3 months to be announced by
chinadotcom as it rounds out its multi-pronged wireless strategy of
collaborating with, first mobile phone manufacturers (Siemens and Motorola)
and a mobile phone service operator (New World Mobility), then wireless
application developers (InfoisLive.com and Nokia Artus Developers Program)
and now, a retail mobile phone handset distributor, to effectively maximize
chinadotcom's direct relationship with the end user in the burgeoning wireless
market.
The agreement joins chinadotcom's wireless technologies with CellStar's
immense market reach consisting of over 28 wholesalers and more than 1,200
shops across more than 25 provinces to market chinadotcom's and its affiliate
companies' multiple wireless products and services directly to China's
enthusiastic 50 million plus and growing users of mobile phones and wireless
devices. The vendor-consumer interface and customer service provided by
CellStar's extensive outlets will be the bedrock of chinadotcom's strength in the
China wireless market because the face-to-face nature of the link with the
consumer is the most effective there.
In addition to the sale of chinadotcom's wireless products, the agreement also
calls for the joint venture to further develop innovative new wireless products
and services for the China market.
A further part of the joint venture agreement calls for CellStar to preprogram
the mobile phones and wireless devices that they sell with a link to
chinadotcom's wap.china.com . The agreement is expected to add to
chinadotcom's portal network user base, increase access points to
wap.china.com, and further cement chinadotcom's position as the portal of
choice in China.
Specifically designed by chinadotcom's technical team to optimize information
displayed on mobile phones, the wap.china.com site provides anywhere,
anytime access to online information and services such as news, stock quotes,
weather, sports, email, chatrooms and auctions. Mobile Internet access is
considered by industry experts to be a critical development for increased
penetration of the Internet in China. As an early player in the wireless and
Internet industries, chinadotcom is well-positioned to lead the way.
China's mobile phone user population is projected to be the largest in the world
within a few years. With easy wireless access to the Internet in general and
chinadotcom's portal network in particular, chinadotcom's other business units
Web Connection, a web strategy and solutions provider, and 24/7 Media Asia,
an online marketing network, will be major beneficiaries of chinadotcom's
multi-pronged wireless strategy as China begins to ramp up its e-commerce
facilities and traffic begins to increase on the Internet.
"The potential of the wireless market in China is enormous since the number of
mobile phone users is expected to continue to grow exponentially, but
substantial further economic, infrastructural and other developments are
necessary for it to realize its full wireless potential. chinadotcom and CellStar
are committed to playing a role in this development. By entering into this joint
venture with CellStar we secure our position as a leader and innovator. As the
fastest growing portal in China we utilize optimized display technology to offer
users with any WAP-enabled phone access to wap.china.com, providing them
with quality content and services. We have made a number of strategic wireless
moves recently and we will continue to make more in the coming months, in line
with our commitment and strategy to develop WAP content and be the portal
network of choice in China," said Jack W. Lin, Chief Investment Officer and
Senior Vice President of Strategy of chinadotcom corporation.
Acknowledging the potential of the wireless Internet, chinadotcom has made a
number of recent strategic moves in line with its multi-pronged wireless strategy
for China, which include: An agreement with Siemen's Shanghai Mobile
Communication Ltd. and Motorola Electronics Taiwan Limited to provide
users of their WAP phones with access to chinadotcom's portal network; An
agreement with New World Mobility, a leading mobile phone operator in Hong
Kong, to allow its WAP mobile phone users to link to the rich content of
chinadotcom's prize-winning subsidiary hongkong.com; Investment in and joint
venture with wireless application developer infoisLive.com (first Hong Kong
participant in the Nokia Artus Developers Program) and Beijing Digital Ark;
and the creation of a Wireless Business Unit (WBU) to develop and implement
wireless technology, applications, and initiatives which will be operational later
this year.
chinadotcom instantly leverages its operational and cost infrastructure through
engaging one of the largest and most effective handset sales organization in
China to realize synergies from the productive capacities of chinadotcom and its
affiliate companies.
"CellStar is looking forward to working with chinadotcom in this wireless joint
venture. The winning combination of one of China's largest handset distributors
and the leading portal network will go a long way toward ensuring the future of
mobile communications and wireless usage in China. The mobile phone is set to
become the most pervasive form of Internet access and with our extensive
reach and presence in China we are well positioned to enable as many people
as possible to have access to wap.china.com," said Mr. L.P. King, President of
CellStar (Asia) Corp. Ltd.
About chinadotcom corporation
chinadotcom corporation is a leading pan-Asian integrated Internet company
offering web solutions, portal and online marketing services. Through its three
business units, chinadotcom provides a full range of Internet services around the
Asia Pacific region that; 1) build e-business strategies and solutions (Web
Connection), 2) distribute content via its portal network platform (china.com,
cww.com, hongkong.com, and taiwan.com), and 3) sell services through online
marketing (24/7 Media Asia Limited).
Fuelling the growth of each of these three business units is a synergistic
investment strategy that leverages off chinadotcom's existing operational and
cost infrastructure. By partnering with global leaders in technology, internet and
media Trans Cosmos and Agence France Presse, chinadotcom is
well-positioned to create long term shareholder value through its investments.
The company has offices in more than 10 markets, including Japan, Korea,
Australia, China, Hong Kong, Taiwan, Singapore, Thailand, Malaysia, and the
USA. For more information about chinadotcom corporation, please visit
www.corp.china.com .
About Cellstar
CellStar Corporation is a leading global provider of distribution and
value-added logistics services to the wireless communications industry, with
operations in Asia-Pacific, Latin America, Europe and North America. CellStar
facilitates the effective and efficient distribution of handsets, related accessories
and other wireless products from leading manufacturers to network operators,
agents, resellers, dealers and retailers. In many of its markets, CellStar provides
activation services that generate new subscribers for its wireless carrier
customers. For the year ended November 30, 1999, the Company had sales of
$2.3 billion. Additional information about CellStar may be found on its web site
at www.cellstar.com .
Safe Harbor Statement
The statements in this news release, other than the historical financial
information, may contain forward-looking statements that involve risks and
uncertainties that could cause actual results to differ from anticipated results.
Further information on risk factors that could affect chinadotcom corporation's
results of operations is detailed in chinadotcom corporation's registration
statements and annual report, as filed with the United States Securities and
Exchange Commission.
SOURCE chinadotcom Corporation
/CONTACT: Susan Chan of chinadotcom corporation, +852-2961-2694, or
fax, +852-2571-0410, or susan.chan@hk.china.com/
/Web site: corp.china.com
cellstar.com
(CHINA CLST) |
