Chinese telecom value-added services company Yangtze Telecom has entered into a share exchange agreement with China Poly Group to acquire a 95% equity stake in Hunchun VAS Company.
Hunchun VAS (HCVAS) commercializes technologies in mobile value-added services (VAS). It owns patents in China for push-to-talk (PTT) technology over cellular (PoC) and a biometric technology in security system using a mobile phone.
We are very excited to reach agreement to acquire HCVAS, a company with these two unique patents in the mobile VAS space. With our experience of working with China Mobile and China Unicom in major provinces and cities, we are confident that with the technology from HCVAS, Yangtze will become the first operator of PoC business in China, said Kevin He, chief executive at Yangtze Telecom.
In May 2007, China Mobile selected Nokia Siemens Networks to provide the PoC solution to its customers for the Beijing Olympics in 2008.
Recently, a US start-up VAS company Berggi entered into a strategic partnership for three years with Sina Corporation, an online media company in China to develop and deploy ad-supported mobile services. According to Sinoreach, the mobile VAS revenue in China in 2007 is expected to reach $9 billion and will constitute 23.9% of total mobile operator revenue.
Source: ComputerWire daily updates