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Shanghai Mobile Launches Services Using Contec's Hornett

Vancouver, BC - Contec Innovations, a provider of mobile infrastructure software, recently announced that Shanghai Mobile, a subsidiary of China Mobile, has activated Contec’s Hornet platform to deliver certain third party mobile services over its 10-million subscriber network. This launch, the Company’s third operator deployment in China, is the first to deliver third party services. Contec earns a share of the gross revenue for services delivered via its infrastructure solution.

“The rapid growth of the mobile value-added service marketplace in China has led to deteriorating service quality and increased consumer complaints to the operators,” commented Don Lay, Contec’s CEO. “And for mobile operators that also want to deploy new services faster and more cost effectively, Hornet represents a flexible solution that addresses these issues, ties into the existing infrastructure and helps generate fresh revenues,” Lay added.

Shanghai Mobile is initially launching a variety of third party text messaging based services through Hornet to their mobile subscribers. The first service offerings include chat room-based mobile instant messaging, “joke of the day” and travel and new movie information.

Shanghai Mobile is a provincial operator and wholly owned subsidiary of China Mobile Limited, a mobile operator with over 275 million subscribers. Shanghai Mobile, with over 10 million mobile phone subscribers, earned data service revenue of approximately US$275 million in 2005 representing 18.5% of total revenue.

Contec is focused on selling mobile data infrastructure to China, belived to be the world’s largest and fastest growing mobile market with over 450 million subscribers – and adding approximately 5 million new subscribers every month. The two operators, China Mobile and China Unicom are expected to generate approximately US$10 billion in data and other value-added service revenues in 2006, a 30 percent increase over 2005, which now represents over 20 percent of gross operator revenues. Both operators have recently stated that increasing value-added service revenue is a strategic priority and have allocated significant budgets to build out supporting infrastructure.

SOURCE: Contec Innovations Inc.

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