China Mobile to catch up in chat sector

Mobile chat application Yixin, which was launched by China Telecom Corp Ltd and NetEase Inc, is pushing China Mobile Ltd, the nation's biggest telecom operator, into an awkward corner, analysts said.

On Aug 19, China Telecom and Internet company NetEase Inc jointly launched Yixin, a smartphone app similar to Tencent Holdings Ltd's WeChat.

Yixin, which has created to challenge WeChat, has several features that set it apart from the competition. For instance, the app is capable of sending free text and voice messages to any mobile phone user, whether the receiver has installed Yixin or not.

To show the companies' determination to fight against WeChat, which has attracted more than 300 million users in two years, China Telecom's Chairman Wang Xiaochu and NetEase's Chief Executive Officer William Ding both appeared on stage at the launch ceremony. Other celebrities, including Sohu Inc's chairman Charles Zhang and Lan Ye, vice-president of Chinese e-commerce giant JD.com, were also present.

Before that, China United Network Communications Co Ltd (China Unicom) - China's second-largest mobile carrier - had joined hands with Tencent in July to launch the nation's first SIM card customized for WeChat.

After these moves, China Mobile is now expected to come up with its own strategy for the mobile instant-messaging sector, said Tian Siyu, an analyst with research firm Zero2IPO.

"People cannot help but wonder what kind of move will China Mobile take next? Will the world's biggest telecom carrier endure the situation and be left behind?" Tian asked.

There's no indication yet that China Mobile will react to the market changes or release any strategy for the sector soon.

The company declined to comment for this story.