This excerpt taken from the SOHU 8-K filed Feb 9, 2005.
Fourthly, our Wireless Revenues
By now, SOHUs short messaging services have been switched onto China Mobiles 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