Do you see? Those messages were sent from one user to another, without the help of a WVAS company. That means WVAS companies earned nothing, unless users wanted to use their services. China Mobile and China Unicom are the big brothers who earn all the money in China's WVAS space. If a half-smart investor wants to place their bets on mobile services in China, they should not invest in one of the thousands of fledgling WVAS companies in China. Instead they should buy shares in China Mobile or China Unicom.

     And do users currently want to use those wireless value-added services? No. If you look at the financial statements from Internet portals like China.com, Sohu.com, Tom.com, Netease.com, you'll see they have all had sliding revenue on their wireless value-added services. Sina's MVAS revenue for the first quarter of 2007 was US$18.2 million, declining 20% from the same period last year and declining 5% from the previous quarter.

     Tom.com's wireless Internet service revenue for the first quarter ended March 31, 2007 was US$31.82 million, representing a 28.4% decrease from the same period last year. Wireless Internet service revenues for Tom.com made up 90.6% of total quarterly revenues compared to 88.0% in the fourth quarter of last year. Yikes! They're really putting all their eggs in one clumsy basket!

     And when you look at Chinese companies like Linktone, KongZhong, or Hurray!, which are all purely focused on the Chinese wireless value-added services market, they too have sinking revenue.

     For the first quarter of 2007, Linktone recorded revenues of US$14.2 million, compared with US$14.0 million in the fourth quarter of 2006, but a drop from US$23.0 million in the first quarter of 2006. It also had GAAP net loss of US$3.4 million, compared with net income of US$0.4 million in the fourth quarter of 2006 and US$2.3 million in the first quarter of 2006.