MSN preparing to tap Internet service business in China

Microsoft so far has no immediate plans to tap the Internet service market in China, due to concerns over the market situation, and not speculation about policy restrictions, the China Daily reported.

"Our very focus in China is still offering free products... to help our consumers achieve a user experience with MSN, as we are doing in other emerging markets," said Sharon Baylay, general manager of Microsoft MSN ICAN section, responsible for MSN business in emerging markets including Asia, South America and Australia. Microsoft (China) Co Ltd last Friday unveiled its latest MSN product MSN Messenger 7.0 Chinese language test version, at the same time as the global launching of its 7.0 English language version.

The 7.0 Chinese language test version supports both simplified and traditional Chinese characters, with much improved features compared with the most commonly used 6.2 version in China. The new product is free of charge, and users can download it from websites.

"We try to provide the best breed of services to our consumers," Luo Chuan, director of Microsoft MSN's Greater China region was quoted as saying.

In addition to MSN Messenger, Microsoft is in the process of launching a search service in simplified Chinese language, Luo said.

Answering a question whether MSN is prepared to provide profitable Internet services, Baylay said "we are very committed to the China market, but we will not rush into the business."

Several domestic newspapers including the 21st Century Economic Herald reported that MSN is clin-ching deals with six Chinese websites on partnership in MSN's six service channels attached to MSN Messenger this month, according to the newspaper.

The Chinese companies are said to be paying US$3 million each for a channel, the newspaper said. Some of these partners are top Chinese language websites such as taobao.com, well-known for online auctions; mop.com for its virtual community; and ourgame.com for online games, the media reported. Both Luo and Baylay declined to comment on the report.

It is speculated that partnership with local companies is a way out because foreign ISPs (Internet service providers) are not allowed to enter China for profit, and MSN will take this approachto comply with policy restrictions, the newspaper said.

Baylay refused to comment on the speculation.

MSN basically is a distribution network, and partnership is its business model in many countries, she said, adding: "We are not in the market, not because of policy restrictions." Despite the rapidly increasing user numbers, "we have to consider whether it is the time for us to do something more," said Baylay.

Tencent.com, well-known for its "QQ," commanded 71 per cent of the country's instant messaging market last year, and MSN took 17 per cent, ranking second, according to a report released by domestic leading research firm iResearch.

Source: Xinhua