China Mobile looks to foreign markets with OTT app

Details: James Barton; Category: Consumer Ecosystems; 20 November 2013; 8176 views

China Mobile is attempting to court business from mobile users overseas by relaunching an OTT app that uses data connections to offer free calls.

The app was originally trialled in June but was discontinued as demand outstripped the prototype app’s capabilities.

The app, named Jego, allows users with a China Mobile number to receive inbound calls from other countries for free. In addition, the app offers free text and picture messages, free video calling and reduced rate international calls.

OTT (Over-The-Top ) messaging apps have eaten into operator revenue over the past few years as they use Wi-Fi to offer services free of charge, removing the need for a traditional network. To make up for this lost revenue, operators are now attempting to offer competing services – although this often involves partnering with an existing OTT provider.

Various Chinese operators have begun an OTT offering, with China Telecom and China Unicom both forming partnerships with established OTT players.

Tiger Lin, CEO and chairman of China Mobile International – the overseas branch of China Mobile – has stated that the app will be offered via partnerships with other operators to target both China and international markets.

With over 740 million subscribers, China Mobile is the world’s largest operator – but it has virtually no presence outside of its home market. Its only overseas subsidiary is Pakistani operator Zong.