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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?


To: hui zhou who wrote (5913)5/23/2006 1:21:13 PM
From: RealMuLan  Read Replies (1) | Respond to of 6370
 
Have you paid attention to the reverse relationship bet. the ever increasing number of cell phones in China and ever decreasing profit for the wireless service providers? I have.

My conclusion is that the previous high margin of those wireless SP(service providers) was obtained from ripping off regular Chinese (#1 consumer complain in China for the last 5+ years are about cell phone service providers forcing and charging them for the service they do NOT want). And now, Chinese gov. has tightened the leash and made and actually enforced some new regulations, and also fined heavily to those SP companies, so that those SP companies cannot rip off regular cell phone users in China as much as they want.

Another reason for their profit decline is about the potential liability of digital property. As Chinese gov. takes serious about protecting IP right, those SP companies are getting sued and fined quite frequently now. Although few of them make those lost law suit public in English world<g>