China's BREW Service Market Size Dropped in Q1 2006

China's Analysys International has reported that China's CRBT service market continues to decrease, the total market size had dropped 5% quarterly to reach US$6.1 million in the first quarter of 2006. The continuously sluggish condition has formed a sharp contrast to China Mobile's Baibaoxiang (Jewel Box) service.

The landscape of BREW service in this quarter remained same as before with SP's ranking and revenue similar to those of last quarter, which clearly showed that SPs have no interest in this service. And SPs put more resources into the rapidly developing Baibaoxiang service of China Mobile in this quarter also resulted in the vicious circle of BREW service.

According to Analysys International's research, China Unicom's negative influence on its 2.5G services when it increased the communication tariff standard in Q3 2005 for CDMA users continued. ''And this influence cannot be eliminated in short time. Meanwhile, as the user base of BREW service, China Unicom's CDMA business development was not desirable. And some irregular and unreasonable behaviors in management of BREW services also frustrated SP's proactivity.'' Says Mr. Jin Hui, an analyst from Analysys International.

Since China Unicom did not carry out any practical measurements to deal with the situation of BREW services in this quarter, Analysys International thinks that the prospect of BREW service remains in doubt."

Posted to the site on 2nd June 2006