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China Mobile users can now spread holiday cheer by downloading ring-back tones like "Auld Lang Syne," or a selection of other music, allowing people calling to hear the song instead of the usual "ring ring", a trend the company is counting on to bring in profits.
"When I pick up my phone calls these days, people calling me usually talk first about the music and then move on to our business," said Li Meng, a 25-year-old Beijing resident who just subscribed to the tone service.
"I guess the music makes them relax and it allows for a nicer telephone chatting atmosphere," he said.
China Mobile began the trial service first in Beijing, Shanghai, Guangdong and Zhejiang in April last year.
Officially launched in May last year, the ring-back tone service immediately became popular among the younger generation and was put into commercial use in September.
According to Beijing Mobile, its subscribers can have access to the tone service by calling "1860", its customer service number.
For its "GoTone" and "Mobile Zone" users - two brands of China Mobile phone services - the fee for ring-back tone service is 5 yuan (60 US cent) per month.
Subscribers can also dial "1259070" or log onto www.bfcc.com.cn to download new music, which will cost between zero to 5 yuan (60 US cents) per song.
Currently, the service is not available to its "Shenzhouxing" subscribers.
Analysts believe that the tone service will make a great contribution to the operator's declining voice business, though many believe that wireless data business as well as the value-added telecom service will be the major way out for its slowing average revenue per user (ARPU).
Though there is no specific figure to show how fast it's developed in Beijing, the service already has a firm foothold in the market, according to Gao Songge, an official from the China Mobile Group.
Figures from Shanghai Mobile indicate the service attracted about 5,000 users on a daily basis.
The same phenomena can also be found in other provinces such as Guangdong and Zhejiang.
"I firmly believe that the tone service has a very promising future," Gao said.
China is now the world's largest telecommunications market. By the end of last year, China had recruited more than 269 million mobile phone subscribers and 263 million fixed-line users.
Analysts predict that the monthly revenue from the ring-back tone service will likely surpass 100 million yuan (US$12 million) next year.
And by 2007, about 80 percent of mobile phone subscribers are likely to apply for the tone service.
"Demand for personalized services will see a huge surge," Gao expected.
Users can now select from pop, classical, jazz and other music.
A recent survey indicates that nearly 35 percent of users select pop music downloads, while nearly 30 percent prefer to record their own voices.
South Korea's SK Telecom was the first to launch the service in March 2002.
By the end of 2003, the company had recruited more than 10 million subscribers. Users are mainly between the ages of 15 to 25.
In Taiwan, the service has also witnessed dramatic development with its user base reaching 10 million so far.
The popularity of the tone service has also generated business for content providers as well as equipment suppliers, analysts say.
According to China Mobile, it has signed deals with six service providers, including Sina.com, Kongzhong.com and Tom.com, for the tone service.
Eighty-five percent of the revenue from the service will be allocated to service providers while the remaining 15 percent will go to China Mobile.
"It will be a win-win deal for the telecom operator and service providers," said Chen Jinqiao, director of the China Academy of Telecommunications Research under the Ministry of Information Industry.
However, he believes that a major concern for service providers is the issue of music copyright.
Analysts say the service could potentially boom since only a handful of phone subscribers are using it at this point and as other domestic telecom operators look to develop it.
(China Daily January 20, 2004)
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