Chinese media reports that China Telecom is working on the development and research of the IM software and having China Telecom Information Development Co., Ltd, a holding company of its affiliate Beijing Telecom, to be responsible for the development and operation planning of the new service.

China Telecom might further improve and promote Kuan Le Tong Xin, an IM product which is being tested in Guangdong, but Xu Wenyan, general manager of Guangdong Telecom’s Internet and Value-added Service Department, has denied that the fixed telecom company will promote the IM in such a widespread way as mobile operators like China Mobile and China Unicom have done.

In November 2003, China Telecom commissioned Guangdong Telecom to develop VIM communications system to connect users to fixed phones, Little Smart and even allow mobile phones users to transmit documents and hold telephone meetings.

China Mobile’s IM service is called Fetion, China Unicom’s is named UMS and China Netcom uses MAXIM.

Source : Chinatechnews

Online advertising business contributes most to the growth of total revenues. Income from online advertising reached 114.6 million RMB, an increase of 54.7% sequentially, up 82% year over year. One of the main reasons for the rapid growth is price hike, while the increasing of single advertiser¡¯s investment amount also has great influence on total revenue.

According to the latest data from iAdTracker, in the second quarter of 2007, the number of QQ.com’s advertisers has a marked increase over the first quarter. In June, the number of advertisers reached 181, an increase of 12.4% over May.

According to the latest data from iUserTracker, during Q2 2007, monthly visits of QQ.com grows rapidly, reached 5.11 billion in July.

Page4 I. Background of 4th iResearch Online Consumption Survey
Page6 II. Research Methods
Page7 III. Background of the Industry Research
Page7 IV. Definitions
Page9 V. Findings
Page13 VI. The report details
Page13 Part 1 Market Analysis
Page13 1. Overview of Instant Messaging Market
Page13 1.1 Analysis on Industry Value Chain of Instant Messaging Market
Page15 1.2 Market Participants of China¡¯s Instant Messaging Industry
Page17 2. Analysis on Global Instant Messaging Market
Page17 2.1 Number of Global IM Accounts will reach 1.6 billion by 2010
Page18 2.2 Number of Global IM Users exceed 400 million in 2006
Page19 2.3 Market Sectors of Global Instant Messaging Industry
Page22 2.4 Market Share of There Global Instant Messaging Providers
Page24 3. Overview of China Instant Messaging Market
Page24 3.1 Number of Instant Messenger Users Reached 114 million in 2006.
Page25 3.2 Development of Instant Messaging Products in China
Page29 3.3 Inevitability of the Development of Instant Messaging Products
Page31 3.4 Advantages and Disadvantages in the Development of China¡¯s Instant Messaging Market
Page31 3.4.1 Contributing Factors
Page32 3.4.2 Hindering Factors
Page33 4. Analysis on Competition in China¡¯s Instant Messaging Market
Page33 4.1 Market Share of IM Operators
Page35 4.2 Comparison of Monthly Use between Major IM in China
Page37 4.3 Comparison of Daily Use between Major IM in China
Page40 Part 2 Analysis of Operators
Page40 1. Market Leaders
Page40 1.1 Tencent QQ
Page40 1.1.1 Number of Tencent QQ Accounts
Page41 1.1.2 Number of Tencent QQ Peak Concurrent Users
Page43 1.1.3 Annual Revenue of Tencent
Page44 1.2 MSN Messenger (Live Messenger)
Page44 1.2.1 Number of MSN Messenger Users
Page45 1.2.2 User Comparison between Tencent QQ and MSN Messenger
Page46 2. Instant Messaging Products of Portals and Overseas Operators
Page46 2.1 Instant Messengers of Three Major Portals
Page48 2.2 3 Overseas Instant Messengers – Yahoo Messenger, Google & Skype
Page50 2.3 User Comparison between Yahoo Messenger, Google & Skype
Page52 3. New Marketers of the Instant Messaging Market
Page52 3.1 Fetion
Page54 3.2 PICA Instant Messaging Software
Page56 4. Comparison of User Characteristics between IMs
Page56 4.1 Gender
Page57 4.2 Age
Page58 4.3 Education Level
Page59 4.4 Monthly Income Level
Page60 4.5 Internet Access Location
Page61 Part 3 User Analysis
Page61 1. Use of IM by Internet Users in China
Page61 1.1 IM Penetration Reached 86% among Internet Users
Page62 1.2 Communication Demand Drives Internet User to IM
Page63 1.3 Reasons Stop Internet Users Using Instant Messaging
Page64 1.4 Non-IM Users are Likely to Join the Group of IM Users in the Future
Page65 2. Basic Attributes and Online Habits of IM Users in China
Page65 2.1 Basic Attributes of IM Users in China
Page66 2.2 IM Users¡¯ Major Activities are for Communication and Entertainment
Page67 2.3 The Group of China¡¯s IM Users is a Large Group of Online Consumers
Page68 3. Use of IM by IM Users in China
Page68 3.1 Most Frequently Used IM by IM Users
Page69 3.2 Use of IMs
Page71 3.3 Use of Functions
Page73 3.4 Privacy and Communication Cycle are major Consideration for User to Choose an IMs
Page74 4. IM Behaviors of IM Users in China
Page74 4.1 Frequency of IM Software Use in China
Page75 4.2 Spent Length of Time of IM Use per Use
Page76 4.3 Number of IMs Adopted by Users Simultaneously
Page77 5. Use Analysis of Instant Messenger Functions
Page77 5.1 Use Analysis of Contact List Function of Instant Messenger
Page77 5.1.1 An Average Number of 50 Contacts in Users¡¯ IM Contact List
Page78 5.1.2 An Average of 21 New Contacts are added to Users¡¯ IM Contact List
Page79 5.1.3 Small Capacity Contact List will not Keep Users Away
Page80 5.2 Use Analysis of Voice Function of Instant Messenger
Page80 5.2.1 Voice Function Penetration Reaches 90%
Page81 5.2.2 Major Voice Functional IMs
Page82 5.2.3 Voice Communication Quality is a Key to Attract IM Users
Page83 5.2.4 Satisfaction Level of IM Voice Function
Page84 5.3 Use Analysis of Video Function of Instant Messenger
Page84 5.3.1 Video Function Penetration Exceeds 80%
Page85 5.3.2 Major Video Functional IMs
Page86 5.3.3 Video Connection Speed is a Key to Attract IM Users
Page87 5.3.4 Satisfaction Level of IM Video Function
Page88 5.4 Use Analysis of Interactive Window of Instant Messenger
Page88 5.4.1 Interactive Window of IMs Reached Nearly 65% of IM Users
Page89 5.4.2 News, Entertainment and Life Contents is to Satisfy Users¡¯ Demand
Page90 5.4.3 Interactive Window Provides a Accuracy and Timeliness Platform
Page91 5.5 Analysis of IM Charge Value Added Services
Page91 5.5.1 IM Users Expect Spend approximate 10RMB/Mth on VAS
Page92 5.5.2 Users are willing to Pay for Mobile Messaging, Mobile Phone Connected
Page93 6. Analysis on User Loyalty and Brand Preference
Page93 6.1 Tencent QQ Enjoys the Highest Loyalty Level and Skype Has the Biggest Attraction Level
Page95 6.2 IM Users¡¯ Brand Preference
Page96 6.3 Most Recommended IMs of the 2006
Page97 Report Conclusion and Suggestions
Page99 Basic Attributes of IM Survey Samples
Page100 Attachment: iResearch Survey Method and Procedure
Page105 Disclaimers:

Page3¡ª¡ªI. BACKGROUND
Page4¡ª¡ªII. DEFINITIONS
Page5¡ª¡ªIII. METHODOLOGY
Page6¡ª¡ªIV. SUMMARY
Page9¡ª¡ªV. TEXT
Page9¡ª¡ª1. OVERVIEW OF INSTANT MESSAGING MARKET
Page9¡ª¡ª1.1 ANALYSIS ON INDUSTRY VALUE CHAIN OF INSTANT MESSAGING
Page11¡ª¡ª1.2 ANALYSIS ON GLOBAL INSTANT MESSAGING MARKET
Page11¡ª¡ª1.2.1 Number of Global Instant Messaging Accounts 2003-2007
Page12¡ª¡ª1.2.2 Number of Global Instant Messages Sent per Day 2003-2009
Page13¡ª¡ª1.3 ANALYSIS ON IM USE IN USA
Page13¡ª¡ª1.3.1 Major Instant Messaging Tools in USA
Page14¡ª¡ª1.3.2 Enterprise Instant Messaging in USA
Page15¡ª¡ª1.4 DEVELOPMENT OF CHINA INSTANT MESSAGING MARKET
Page15¡ª¡ª1.4.1 Development of Instant Messaging in China
Page17¡ª¡ª1.4.2 Enterprise Instant Messaging in China
Page18¡ª¡ª2. OVERVIEW OF CHINA INSTANT MESSAGING MARKET
Page18¡ª¡ª2.1 NUMBER OF INTERNET USERS IN CHINA 2001-2010
Page19¡ª¡ª2.2 NUMBER OF INSTANT MESSAGING USERS IN CHINA 2002-2010
Page20¡ª¡ª2.3 MARKET SIZE OF CHINA INSTANT MESSAGING MARKET
Page21¡ª¡ª2.4 IMPACT FACTORS OF CHINA INSTANT MESSAGING MARKET
Page24¡ª¡ª3. ANALYSIS ON COMPETITION IN CHINA INSTANT MESSAGING MARKET
Page24¡ª¡ª3.1 OVERVIEW OF COMPETITION IN CHINA INSTANT MESSAGING MARKET
Page25¡ª¡ª3.2 MARKET SHARE OF IM OPERATORS IN TERMS OF MOST FREQUENT USERS
Page27¡ª¡ª3.3 USE OF INSTANT MESSAGING TOOLS IN CHINA
Page29¡ª¡ª3.4 CONVERSION RATE OF MOST FREQUENT USERS TO ONCE USERS BY BRAND
Page30¡ª¡ª3.5 USE OF OTHER IM BRANDS BY MOST FREQUENT USERS OF A CERTAIN IM BRAND
Page31¡ª¡ª4. ANALYSIS ON CHINA INSTANT MESSAGING OPERATORS
Page31¡ª¡ª4.1 USERS’ FAVORITE IM BRAND
Page32¡ª¡ª4.2 LEADING PLAYERS
Page32¡ª¡ª4.2.1 Tencent QQ
Page35¡ª¡ª4.2.2 MSN Messenger
Page36¡ª¡ª4.3 PORTAL PLAYERS
Page36¡ª¡ª4.3.1 Netease Popo
Page37¡ª¡ª4.3.2 SinaUC
Page38¡ª¡ª4.3.3 Sohu SouQ
Page39¡ª¡ª4.3.4 TOM Skype
Page41¡ª¡ª4.4 NEW AND JOINT PLATFORM PLAYERS
Page41¡ª¡ª4.4.1 Taobao Wangwang
Page42¡ª¡ª4.4.2 Shanda Quanquan
Page43¡ª¡ª4.4.3 Google Talk
Page44¡ª¡ª5. ANALYSIS ON INSTANT MESSANGER USERS IN CHINA
Page44¡ª¡ª5.1 ATTITUDE ANALYSIS OF IM USERS IN CHINA
Page44¡ª¡ª5.1.1 Reasons for IM Use in China
Page45¡ª¡ª5.1.2 Frequency of IM Software Use in China
Page46¡ª¡ª5.1.3 Spent Length of Time of IM Use per Use
Page47¡ª¡ª5.1.4 Number of IM Tools Adopted by Users Simultaneously
Page48¡ª¡ª5.1.5 Impact Factors of Choosing Different IM Tools
Page49¡ª¡ª5.1.6 Satisfaction Level of Each IM Tool in China
Page50¡ª¡ª5.2 BEHAVIOR ANALYSIS OF IM USERS IN CHINA
Page50¡ª¡ª5.2.1 Use of Voice Chatting Feature
Page53¡ª¡ª5.2.2 Use of Video Chatting Feature
Page56¡ª¡ª5.2.3 Attitudes towards Popping Up Windows of IM Tools
Page58¡ª¡ª5.2.4 Attitudes towards Payment for IM Featured Services
Page60¡ª¡ª5.3 COMPARISON ON DEMOGRAPHIC FEATURES OF IM USERS BETWEEN MAJOR IM TOOLS
Page60¡ª¡ª5.3.1 Differences of Gender Distribution between Major IM Tools
Page61¡ª¡ª5.3.2 Differences of Age Distribution between Major IM Tools
Page62¡ª¡ª5.3.3 Differences of Level of Education between Major IM Tools
Page63¡ª¡ª5.3.4 Differences of City Level Distribution between Major IM Tools
Page64¡ª¡ª5.3.5 Differences of Level of Monthly Income between Major IM Tools
Page65¡ª¡ª6. SUGGESTIONS FROM IRESEARCH
Page66¡ª¡ªAPPENDIX: RESEARCH METHODOLOGY AND PROCEDURES
Page68¡ª¡ªDISCLAIMERS
Table of Charts in Full Version

Page10¡ª¡ªIM industry value chain
Page11¡ª¡ªNumber of global IM accounts
Page12¡ª¡ªNumber of global IMs sent per day
Page13¡ª¡ªNumber of IM users in USA by brand
Page14¡ª¡ªHow many enterprises have used instant messaging in North America
Page15¡ª¡ªDevelopment of instant messaging in China
Page18¡ª¡ªNumber of Internet users in China 2001-2010
Page19¡ª¡ªNumber of instant messaging users in China 2002-2010
Page20¡ª¡ªBusiness modules of IM operators
Page22¡ª¡ªNumber of spam instant messages in the world
Page25¡ª¡ªMarket share of China IM operators in terms of most frequent users in 2005
Page26¡ª¡ªMarket share of China IM operators in terms of most frequent user 2003-2005
Page27¡ª¡ªUsers’ major IM tools in China in 2005
Page28¡ª¡ªPercentage of IM users who have used an IM tool 2003-2005
Page29¡ª¡ªConversion rate of most frequent users to once users by brand in 2005
Page30¡ª¡ªUse of other IM Brands by most frequent users of a certain IM brand in 2005
Page31¡ª¡ªUsers’ favorite IM brand in 2005
Page32¡ª¡ªNumber of Tencent QQ accounts
Page33¡ª¡ªNumber of peak concurrent users of Tencent QQ IM software
Page34¡ª¡ªAnnual revenue of Tencent 2002-2005 by business module
Page35¡ª¡ªMSN online communication products highlights
Page40¡ª¡ªNumber of global peak concurrent users of Skype
Page44¡ª¡ªWhy do users choose using instant messenger in China in 2005
Page45¡ª¡ªHow frequent do users use IM in China in 2005
Page46¡ª¡ªHow long do users log on IM per use
Page47¡ª¡ªNumber of IM tools adopted by user simultaneously
Page48¡ª¡ªFactors for consideration in choosing an instant messenger in China in 2005
Page49¡ª¡ªSatisfaction level of each IM tool in China in 2005
Page50¡ª¡ªDo IM users use function of voice chatting in China in 2005
Page51¡ª¡ªUse of voice function enabled IMs in China in 2005
Page52¡ª¡ªSatisfaction level of voice function of IMs in China in 2005
Page53¡ª¡ªDo IM users use function of video chatting in China in 2005
Page54¡ª¡ªUse of video function enabled IMs in China in 2005
Page55¡ª¡ªSatisfaction level of video function of IMs in China in 2005
Page56¡ª¡ªDo users view information from popping up windows of IMs in China
Page57¡ª¡ªWhat kind information do users want from popping up window of IMs in China
Page58¡ª¡ªWhat kind featured Charge Services do users expect in China in 2005
Page59¡ª¡ªHow much are users willing to pay monthly for IM featured service in China in 2005
Page60¡ª¡ªGender distribution of instant messenger users in China in 2005
Page61¡ª¡ªAge distribution of instant messenger users in China in 2006
Page62¡ª¡ªLevel of education of instant messenger users in China in 2007
Page63¡ª¡ªCity level distribution of instant messenger users in China in 2008
Page64¡ª¡ªLevel of monthly income of instant messenger users in China in 2009

Page4–I. Background
Page5–II. Definitions
Page5–1. DEFINITIONS RELATED WITH STUDY POPULATION
Page6–2. CONCEPTS & DEFINITIONS RELATED TO IM MARKET
Page7–III. Methodology
Page9–IV. Summary
Page13–V. Text
Page13–1.Concepts & Definitions Related to IM Market
Page14–2. Overview of IM Market
Page14–2.1.CURRENT USE OF IM SOFTWARE IN THE WORLD
Page16–2.2.CURRENT USE OF IM SOFTWARE IN U.S.
Page16–2.2.1.Distribution of IM Market Share in U.S.
Page18–2.2.2.Configuration of Adult IM Users in U.S.
Page19–2.3.CURRENT USE OF IM SOFTWARE IN CHINA
Page20–2.4.CURRENT USE OF IM BY CORPORATE USERS IN CHINA
Page23–3.Overview of IM Development in China
Page23–3.1.CURRENTLY DEVELOPMENT OF POPULATION OF IM USERS
Page25–3.2.FACTORS INFLUENCING IM DEVELOPMENT
Page26–3.3.CLASSIFICATION OF IM VALUE
Page26–3.4.IM INDUSTRIAL CHAIN
Page27–4.Competitive study on IM market
Page27–4.1.POPULATION OF MONTHLY ACTIVE IM USERS IN CHINA IN 2004(INCLUDING REPETITIVE USERS)
Page29–4.2.RATE OF MARKET PENETRATION OF MAJOR IMS IN TERMS OF MONTHLY ACTIVE USERS IN 2004
Page31–4.3.RATE OF MARKET PENETRATION OF MAJOR IMS IN TERMS OF MONTHLY ACTIVE USERS IN 2004 (EXCLUDING REPETITIVE USERS)
Page33–4.4.POPULATION OF CHINA’S MONTHLY ACTIVE IM USERS OVER YEARS
Page34–4.5.USE OF IM SOFTWARE IN 2004
Page34–4.5.1.Overview of Use of IM Software in 2004
Page37–4.5.2.Ratio of Users who most Frequently Used an IM Software to those who ever Used it in 2004
Page38–4.5.3.Comparison of Use of Major IM Software Between 2003 and 2004
Page39–4.5.4.Use of other IM Software by most Frequent Users of a Certain IM Software
Page39–Use of other IM Software by most Frequent Users
Page39–of a Certain IM software in 2004
Page40–5.Analysis on IM Operators
Page40–5.1.COMPETITION AMONG IM OPERATORS
Page40–5.2.LEADING OPERATORS
Page41–5.2.LEADING OPERATORS
Page47–5.3.PORTAL OPERATORS
Page51–5.4.SPECIALIZED OPERATORS
Page55–5.5.EVALUATION ON MAJOR IM SOFTWARE
Page56–6. Development of IM Users in China
Page56–6.1.ANALYSIS ON USE HABIT OF IM USERS
Page58–6.1.1.Use of Various Functions by IM Users
Page59–6.1.2. Numbers of IM Software Used by Users Simultaneously
Page60–6.1.3.Opinion of Users on Platforms Compatible with Various IM Software
Page61–6.1.4.Frequency of Users to Use an IM Software
Page62–6.1.5.Time Spent on IM Software per Day
Page63–6.1.6.Reasons for Users to Use IM Software
Page65–6.1.7.Ways for Users to Add Friends
Page66–6.1.8.Numbers of Friends of Users on Their Most Frequently Used IM Software
Page67–6.1.9.Solutions for IM Users to the problem of “List Is Full”
Page68–6.1.10.Internet Restriction on Using IM Software
Page69–6.1.11.Whether or Not Affected by IM Virus
Page70–6.2.DEGREE OF SATISFACTION OF USERS ON EACH FUNCTION OF IM SOFTWARE
Page72–6.3.USE OF VOICE IM SOFTWARE
Page72–6.3.1.Use of Various Types of Voice IM Software
Page74–6.3.2.Use of Comprehensive IM
Page75–6.3.3.Use of Professional Voice Chatting IM
Page76–6.3.4.Use of Mobile Phone Based Voice IM Software
Page77–6.3.5.Degree of Satisfaction on Voice IM Software
Page80–6.4.OPINIONS OF USERS ON IM ADVERTISING
Page80–6.4.1.Acceptance of Users on IM Advertising
Page81–6.4.2.Effect of IM Ad & Website Ad on IM Users
Page82–6.5. OPINION OF USERS ON IM FEE CHARGE
Page82–6.5.1.Monthly Expenditure Willing to Pay for IM Software
Page83–6.5.2.Ratio of Monthly Expenditure for IM to That for All Internet Applications
Page84–6.5.3.Functions of IM Software that Users are Willing to Pay for
Page86–6.6.COMPARISON OF USERS OF VARIOUS IM SOFTWARE
Page86–6.6.1.Gender Ratio of Users of Major IM Software
Page87–6.6.2. Distribution of Users of Major IM Software in terms of Types of Cities
Page88–6.6.3.Distribution of Users of Major IM Software in terms of Age
Page89–6.6.4.Distribution of Users of Major IM Software in terms of Level of Education
Page90–6.6.5.Monthly Income of Users of Major IM Software
Page91–6.6.6.Locations for IM Users to Access Internet
Page92–7.Recommendations on Future Development of IM
Page93–Law Statement