The new measures are in addition to those measures that the Company
announced in its press release of
Over the course of the next few weeks and under the guidance of China Mobile, wireless value added services (WVAS) that are embedded in handsets will be required to introduce additional notices and confirmations to end-consumers during the purchase of such services.
Similarly, over the course of the next few weeks, services related to SMS short codes will be required to be more tailored to the specific service offering or service partner. Previously, a single SMS code could be used for multiple service offerings or partners.
As these measures are implemented, the Company expects its first quarter
2010 WVAS revenues (which do not include mobile games, WIS or online game
revenues) to decline by approximately 20% to 25% from third quarter 2009
levels, or to be between
These new revenue projections for the Company's WVAS business already
include the impact from the suspension of WAP billing, previously announced in
its press release of
However, the Company does not expect its mobile game operations to be significantly impacted, and expects no impact on its online game operations as a result of these new policies.
The Company is actively reviewing its business operations to adjust to the new policy changes in the WVAS market. These new policy changes are expected to potentially significantly reduce the number of service providers in the market in the coming months, which may benefit more established service providers, such as the Company, over the longer term. Moreover, the Company expects these new measures to create a foundation for a healthier market environment as the Company and its mobile operator partners seek to develop and the expand the WVAS market for 3G services.
About KongZhong
KongZhong Corporation is a leading mobile Internet company in
Safe Harbor Statement
This press release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Such forward-looking
statements include, without limitation, statements regarding trends in the
wireless value-added services, wireless media and mobile games industries and
our future business, financial conditions, results of operations and prospects.
Although such statements are based on our own information and information from
other sources we believe to be reliable, you should not place undue reliance
on them. These statements involve risks and uncertainties, and actual market
trends and our results may differ materially from those expressed or implied
in these forward-looking statements for a variety of reasons. Potential risks
and uncertainties include, but are not limited to, our failure to fully
realize the anticipated synergies or benefits from our mergers and
acquisitions; continued competitive pressures in
SOURCE KongZhong Corporation