No.1 - GW1001March 2, 2010

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Gport WeeklyFollowing us, following global mobile internet trends

China 3 Knockoff Cell Phone Manufacturers to Set Up

Factories in India Taobao Launched Its App Store Annual Review-China Mobile vs. China

Unicom in Emerging 3G MarketJapan 6

iPhone, Japan’s Best-selling Smartphone 30min: Japan Local Navigator Adds Check-in

Feature Mobile Payment System for iPhone Launched

South Korea 9 60% South Koreans Choose Nexus One Samsung Announced Its First Bada Phone, the

Wave at MWC

United States 11 Square – Twitter Co-founder Launched New

Mobile Payment System 10 Technologies That Will Rock 2010

Europe 13 Layar –Mobile Augmented Reality Browser

Dear Readers,GWC experienced remarkable growth

last year, with membership increasing from 8 to 70. By no means could this be possible without your support. It is our objective to set up a platform for effective communication within the industry. In the last 6 months, we have organized trips to 10 countries and regions, offering our members the opportunity to see, learn and grow. This publication is our effort to offer our readers a global perspective. Initially we will mostly cover China, South Korea and Japan’s mobile internet markets, with less content on western markets . Later we will improve our coverage . If you have any thoughts or ideas, write to us. Your support is always appreciated.

- Chief Editor, Bo Yiqun

To the First Readers of the Gport Weekly

Sina Tech, Feb 21st : Shenzhen’s Mobile Communications Association is planning a business trip to India to negotiate cooperation with local companies. Head of the association, Tang Ruijin said that their goal is to establish production lines or assembly lines with production capacity at 10 million units. Tang said,"China's cell phones had 40% of India’s market share last year, but now we are losing our edge. We have to rely on Shenzhen’s manufacturing advantage to win back our share."

Wang JianzhouCEO of China Mobile

2009 World Economic Forum

“Despite the fact that knockoff cell phones are hard to regulate and not to be encouraged, they do have advantages, especially in cost control.”

GWC Comment

Knockoff cell phones are known to be programmed with invalid IMEI codes. Last year, Pakistan and India cracked down on imported cell phones with invalid IMEI. 25 million knockoff cell phones were banned in India.It would be wrong to ignore the positive effects of knockoff cell phones

such as their contribution to the popularity of cell phones and their advantage in cost control.According to BDA’s report, the number of knockoff cell phones produced

in China last year reached 235 million units, which is about 20% of the world’s total cell phone production.India is the world’s second largest cell phone market with 430 million users.

Yet, the percentage of cell phone users in India is less than 40%, which is significantly lower than that of China.The development of cell phones far outpaced that of landlines in China

and India. Both countries are seen as the world’s largest cellular phone markets.GWC predicts India, Russia and Brazil to be the world’s most important

emerging cell phone markets. Stay tuned for GWC’s upcoming trip to India.

Knockoff Cell Phone Manufacturers to Set Up Factories in India

On Jan 15, Taobao.com officially launched its app store (app.taobao.com) and announced an annual award of 10 million Yuan to reward ISVs and outstanding app developers. Taobao also promised to share operating revenues with independent software vendors.

Software developers will be able to generate revenue from their applications through subscription fees, commissions or advertising, depending on the type of service offered and popularity of the product.

There are currently 54 applications available at Taobao app store, including seller tools, buyer tools, mobile applications and other useful applications.

Taobao launched its Open Platform (TOP) in June, 2009. In September, its application development contest "Win at Taobao" attracted more than 3,600 developers. As of December 31, 2009, more than 25,000 independent software developers have registered at TOP and more than 4,000 applications have been created using the application programming interface (API) provided on TOP.

Taobao App Storehttp://app.taobao.com

GWC CommentFrom selling real commodities to selling virtual goods and services, then to

applications, Taobao really has the knack for B2C success.Thanks to Apple and Facebook, app stores are now extremely popular

worldwide. With a 150 million user base and tremendous advantages in communication, community service and online transactions, Taobao is going to make a difference.

• Apple's app store works like an application supermarket. Though with so many applications to sift through, it has become difficult for developers to get traction.

• Until recently Facebook did not have a built in payment platform. This situation changed on February 18th, when Facebook and Paypal announced a strategic relationship.

Taobao Launched Its App Store

China’s three major telecom operators have announced their subscriber totals for January 2010. China Telecom has the smallest market share, with about 59.1 million subscribers. The table below only

includes China Mobile and China Unicom since China Telecom’s 3G subscriber total was not available.

Subscribers (Millions) China Mobile China Unicom

Total Subscribers 527.4 149.2

Market Share (%) 72% 20%

3G Subscribers 3.9 3.6

3G Subscriber Monthly Increase 0.5 0.85

Source: China Mobile ,China Unicom, January 2010

GWC Comment

It has been one year since the government issued 3G licenses in January 2009. China Mobile has the largest mobile user base, but China Unicom is more competitive in the

3G market.• Starting from 2008, China Mobile began to build 3G networks and develop 3G

subscribers in many cities. However, it seems that TD-SCDMA still has a long way to go. There is speculation that China Mobile does not intend to throw its full weight behind TD-SCDMA.

• China Unicom was allowed to build 3G networks based on WCDMA, the most mature 3G standard. It also clinched a deal with Apple. Moreover, China Unicom offers competitive rate plans.

Annual Review- China Mobile vs. China Unicom in Emerging 3G Market

A report issued by Impress R&D said that iPhone 3G and 3GS have combined to take 46% of the smartphone market in Japan.

iPhone 3G - 24.6%

iPhone 3GS - 21.5%

3 million iPhones are sold in Japan.

Willcom phones held No 3- 5 positions. HTC’s HT-03A(Japan’s first Android phone) ranked No.10 (2.3%), Docomo’s Blackberry Bold ranked 11(1.2%).

32 coolest iPhone apps according to Techcrunch，(Link)

GWC Comment

Japan’s cell phone market used to de dominated by local mobile device makers. What iPhone has achieved in Japan is nothing short of amazing.According to Techcrunch, the success of

iPhone in Japan can be attributed to Softbank’s aggressive marketing strategy which included a massive ad campaign and

extremely competitive rate plans.

iPhone, Japan’s Best-selling Smartphone

Japan-base 30min Inc. is a local navigator that offers restaurant listings, reviews, and photographs, as well as local services and businesses, attractions and events. Unlike other social recommendation systems, 30min offers information that is within 30 minutes of your current location, hence the name.

30min Inc. has just updated their local navigation app with foursquare check-in features and twitter integration. This new update adds a check-in function similar to foursquare and twitter interaction so your followers can track your mealtime check-ins. You will be able to look back at your previous activities log and track check-ins of other users by location.

30min now provides services to more than 20 Japanese cities.

GWC Comment

30min tells you what you can do within 30 minutes of your current location, making it Japan’s best-known LBS app. Particularly in dense cities like Tokyo, these social

based recommendation systems are gaining popularity as real-time information can outpace more traditional forms of advertisement. Check-in, first released by Foursquare, is a social real-

time service. Foursquare is an innovative mobile SNS platform that combines Twitter-like features, LBS and social recommendation system, etc. Many predict this popular location-based social networking service to be the next Twitter.

30min: Japan Local Navigator Adds Check-in Feature

Mobile payment systems are catching on in Japan, with Docomo’s Osaifu Keitai being the most successful.

At the beginning of 2010, Mophie, in collaboration with Focal Point Computer Inc, launched FeliCa card payment system for iPhones in Japan, allowing users to instantly read and write electronic money card information using only the iPhone device and marketplace FeliCa App.

GWC Comment

FeliCa is a contactless IC card technology developed by Sony Corporation that is prevalent in Asian countries, used in approximately 100 million mobile phones and more than 120 million transportation and electronic money cards in Japan alone. Mophie’s marketplace FeliCa capitalizes on the widespread use of FeliCa technology and delivers solutions for consumers, general business and retail business users who want to process any type of electronic payment in a mobile environment. Osaifu Keitai, literally meaning "Wallet Mobile", is developed

by Docomo in 2004. In Japan, more and more RFID chips are integrated into cell phones, making FeliCa a hit.

Mobile Payment System for iPhone Launched

According to South Korea’s SmartphoneNow, the most anticipated smartphone of 2010 is Nexus One. 60% of South Koreans chose Nexus One over 13 other Android phones.

South Korean Carrier Strategy for 2010 KT, which is iPhone’s

exclusive carrier in South Korea, plans to sell the Nexus One in 2010.

SK Telecom plans to release 13 Android phones in 2010.

Nexus One 66%Motorola 12%LG 10%Samsung 4%

Smartphone Anticipation Ranking

Source：SmartphoneNow, January, 2010

GWC Comment

The South Korean market and the Japanese market are similar in that both are dominated by carrier-branded cell phones.IPhones and Android phones are

gaining popularity in South Korea. ROA Group predicts the sale of smartphones in South Korea to reach 1.8 million in 2010.

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60% South Koreans Choose Nexus One

Samsung unveiled Wave, its first Bada-based smartphone at MWC. Bada OS supports sensor-based, context-aware applications, and provides things like

motion sensing, web control, flash control, fine-tuned vibration control and face detection. It is an open platform that enables developers to create interesting applications.

Samsung Bada will support lots of features, including: location-based services, social networking, content management, commerce services and device synchronization. Several companies have announced their support for Samsung Bada, including Twitter, Blockbuster, EA Mobile, CAPCOM and Gameloft. Samsung will have a Bada app store, which would allow even non-registered users to buy Bada applications.

Samsung will officially release Wave in late March. Its 2010 cell phone sales is expected to reach 270 million, which will be a 19% increase over last year.

GWC Comment

Phone manufacturers such as Apple, Nokia, Samsung and LG are diverting their attention from hardware to software and services. Smartphones’ popularity is still increasing,

with all manufacturers and carriers unveiling new platforms. But, will developers be enthusiastic about all of them?

Samsung Announced Its First Bada Phone, the Wave at MWC

GWC Comment

Twitter co-founder, Jack Dorsey starts new venture in mobile payment Company Name：Square Idea: To let people quickly and easily accept physical credit card

payments from their mobile phone. Product & Service：A payment dongle that attaches to the phone + a

mobile payment app. Features

Transactions are made online, making payment an enjoyable experience.

Card holders can sign screen receipts

Receipts and map marked with transaction location are automatically sent via email to users.

CRM keeps track of repeat customers.

User ID such as photo bundled with bank info. Business Model: 2.9% transaction fee+$1 for merchant app+ Free

dongles Roadmap：Unveiled in December 2009, in to be available April, 2010. Demo: View

Payment dongle

Location of transaction

$11.5 for two cappuccinos

A track of recent transactions

Signature

iPhone interface

Square’s mobile payment system turns phones into credit card machines. It is extremely helpful for small businesses. Square is backed by Khosla Ventures and a team of angel investors. Square's

team of advisors includes Google Vice President, Marissa Mayer; Foursquare co-founder Dennis Crowley; Digg founder Kevin Rose; Twitter creative director Biz Stone; Delicious creator Joshua Schachter; Napster developer Shawn Fanning and venture capitalist Ron Conway, etc.

Square: Twitter Co-Founder Launches New Mobile Payment System

Techcrunch released a list of ten technologies that will rock 2010 (English/Chinese). Mobile devices and applications make up half the list.

1. The Tablet - Everyone seems to be working on a tablet computer, the most anticipated product of the year. Android tablets and Apple tablets are going to be very popular in 2010.

2. Geo -The combination of GPS chips in mobile phones, social networks, and increasingly innovative mobile apps means that geolocation is increasingly becoming a necessary feature for any killer app. Twitter just recently launched its own Geo API for Twitter apps and acquired Mixer Labs, which created the GeoAPI.

3. Real-time Search -After licensing real-time data streams from Twitter, Facebook, MySpace, and others, Google and Bing are quickly ramping up their real-time search.

4. Chrome OS - In November, Google gave the world a sneak peek at its Chrome operating system. Chrome OS was released later in 2009.

5. HTML5 -Already browsers such as Firefox and Google’s Chrome are HTML5-friendly. Once HTML5 becomes more widespread across the Web, it will reduce the need for Flash or Silverlight plug-ins to view videos, animations, or other rich applications.

6. Mobile Video -With video cameras integrated into most cell phones, live video streaming apps are becoming more commonplace—both streaming from phones and to them.

7. Augmented Reality -It is going to be one of the coolest ways to use the camera lens on a mobile phone .

8. Mobile Transactions -Any mobile phone can become a point of sale, and those mobile transactions can tie into back-end accounting, CRM, and other enterprise systems.

9. Android -There were already more than 10,000 apps on Android in 2009. The number of Android apps and phones are both expected to grow tremendously in 2010.

10. Social CRM -Salesforce.com (CRM) is set to launch Chatter, its real-time stream of enterprise data which interfaces with Twitter and Facebook and turn them into business tools.

Source：Techcrunch.com, pcpop.com

10 Technologies That Will Rock 2010

Layar, a Dutch augmented reality browser, is the only winner of two prizes at the Mobile Premier Awards of MWC.

Layar shows how augmented reality applications can change the way we view the world. By holding the phone in front of you like a camera, information is displayed on top of the camera

display view. Via Layar, you can get information about bus stations, parks, historic events, new museums, real estate prices, etc.

Layar is officially opening for producers and publishers of AR content, which can offer their work for sale.

Layar’s edge：1 million users+2,000 developers +compatibility with Android, iPhone and Symbian + 3.4 million capital from 2 European investors.（Source: Layar.com）

Abbey Road in London has become famous for housing the studio where the Beatles recorded most of their albums. Now it is possible to see Beatles, simply by pointing your phone at the zebra crossing.

Abbey Road and Beatles in Layar 3.0

GWC Comment Layar combines GPS, camera, and compass abilities to identify your surroundings and overlay

information on your screen, in real time. Techcrunch listed AR as No. 7 technology that will rock 2010 (English/Chinese) . Japan always leads the world in mobile innovation. At 2009 Global Mobile Internet Conference,

Japanese company Tonchidot unveiled its AR-based Sekai Camera. In June, 2009,KDDI launchedseveral AR-based services.

Other AR-based Applications （Source: shtion.com）• Yelp Monocle takes Yelp information and overlays it into the real world. • iPhone ARider gives riders a real-time map that uses the iPhone's compass to adjust the

map to your current orientation. • TwittARound uses cell phone’s compass and GPS to flash up nearby tweets as they’re

sent. • Wikitude World Browser is another cool augmented iPhone application that helps you

explore your surroundings effectively on your phone. • Acrossair Nearest Subway overlays nearest subway stops on the live image in front of

you. • TAT Augmented ID (Coming Soon) utilizes facial recognition software (supplied by Polar

Rose) to visualize the digital identities of those around you.

Layar, Augmented Reality Browser

2010 Global Mobile Internet ConferenceMobile Internet Opportunities in Asia

Beijing, May 27-28th, 2010

GWC holds the annual Global Mobile Internet Conference (GMIC), one of the industry’s most influential conferences. This year, approximately 1,000 mobile internet professionals will attend the conference.

• Keynote speeches from the world’s industry leaders.• Country Forums: China, Japan, South Korea, Europe

and the United States• Mobile Internet Innovation Exhibition• East & West Dialogue• GWC Member Meeting

2010 GMIC calls for visionary speakers,

partners and sponsors!

Gold Sponsors

Silver Sponsors

If you want to sponsor our conference, please write to lijuan@thegreatwallclub.com

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If you want to attend the conference, register online at http://www.gmic2010.com/

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