Messaging APPs VS  telecom giants

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Weixin, or WeChat, is a WhatsApp-like messaging service to contact clients and chat with friends via mobile phones.

The app combines all functions of short messaging service and also offers voice messaging and photo transfers.

It's basically free, except for some minor charges for network flow.

The service, developed by Tencent Holdings Ltd., one of China's largest IT companies, has a huge user base now.

Weixin was followed by many other IT firms that rushed to launch their own instant messaging services, including Sina Weibo, China's most popular Twitter-like platform.

As the apps have become more popular, however, telecom operators have noticed a drop in business.

According to the Ministry of Industry and Information Technology, the number of traditional text messages sent by individual users declined 10.6 percent year on year in the first two months of 2013.

And the growth of messages sent via telecom networks slowed to 0.7 percent, plummeting from 5.7 percent and 7.6 percent in the same period of 2011 and 2012.

In contrast, Tencent witnessed its income in telecom value-added services rising 13.8 percent to over 590 million U.S. dollars last year.

Industry insiders say, however, the use of messaging apps on mobile services may boost network flows, indicating potential business for telecom carriers.

To improve the lackluster performance, China's three telecom giants have launched their own mobile apps, but they only take a small market share compared with major software apps.

Recently, Tencent said it's willing to cooperate with telecom operators based on mutual benefits and win-win results.

The country's biggest telecom company China Mobile, responded that contracting profits in messaging services will be offset by booming network flows, stressing it's an inevitable trend in technological advancement.

But some insiders hold a gloomier outlook, as the conflict of interests is inevitable in the short term without interference of a third party.