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SOHU » Topics » Fourthly, our Wireless Revenues

This excerpt taken from the SOHU 8-K filed Feb 9, 2005.

Fourthly, our Wireless Revenues

 

By now, SOHU’s short messaging services have been switched onto China Mobile’s new billing platform MISC in 11 out of 13 provinces. Only the provinces Jiangxi and Jilin have not yet switched to MISC. That means that 95% of our SMS revenue is already on MISC. So from now on, we expect MISC for our SMS to have very little impact on us.

 

As has been the case every quarter, it is very difficult to give any specific outlook for our wireless business going forward. For each of the four quarters in 2004, we experienced a substantial and continued downturn of our wireless revenues, due to reasons such as tighter billing controls from operators and suspension of our MMS service. Often these new regulatory developments were difficult to foresee. We do believe we have hit the bottom of our wireless decline in the fourth quarter and are now back on the road to recovery.

 

Specific measures taken over the past few quarters, which we expect will bear fruit starting the first quarter of 2005, are

 

  •   We have now expanded our co-operation with operators to cover not only China Mobile and China Unicom, but also China Telecom and China Netcom, which gives us access to over 65 million PAS users. The bulk of these services are now in testing phase, and we plan to start charging late in the first quarter.

 

  •   We continue to develop products for both 2G and 2.5G platforms because we believe there is a viable market for niche SMS products to co-exist with the market for 2.5G products.

 

  •   We have by now fully integrated Goodfeel, the WAP company we acquired last year, and SOHU’s own WAP team. We expect this to be a positive for our WAP revenues going forward.

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