Telecom Data Fees Too High In China?

June 5, 2010 | Filed Under Telecommunications | No Comments

The average plane landing at Beijing Airport tells the tale: there is bound to be a phone beeping about around 15 seconds after the plane leaves the runway. (On some airliners, you’ll have to wait until you’re at the terminal building, but most of us break the rules anyway.) It’s no secret that the China of today is a truly mobile society — with mobile phones, of course.

Once upon a time, a mobile phone just got your word from A to B by voice only. In 2000, SMS came in (it’s now a nightmare, with all those real estate developers spamtexting everyone). Now, most phones are Web-savvy, and it’s not easy these days to get a phone which does not have Internet access. (We need not even mention the iPhone or the iPad 3G!)

Thing is, getting access to the Interwebs on the go (with the Great Firewall still intact, unless you “reroute”) is possible, but to the average non-capitalist consumer, is more costly than you think. The official People’s Daily ran a whole page on the mobile Internet (not mentioning censorship at all, by the way), and the official point of view is this: the mobile Web remains too expensive in China.

Unless you’re on a subscription and on a data plan, charges can get sky high. Bandwidth goes for CNY 0.1 per megabyte, which means that if you’re downloading about a gigabyte of stuff, that’s easily CNY 100 down the sewer. China Mobile’s subscriptions is one of the few that will actually top out at CNY 500 a month — regardless if you’re tweeting on the go or not. (That’s a high price to pay for unlimited data access!) Others have data plans that will include the first 5 GB or so of data access at CNY 300, but if you’re over it, it’s CNY 0.1 a megabyte. Download a 12 GB movie, and that’s an astronomical bill waiting for you.

What the paper doesn’t touch upon are those charges you get when overseas. Despite the PRC’s adamant stance that “Hong Kong, Macao and Taiwan were, are and will always be part of China”, if you’re tweeting about from there, international data charges apply. Your tech blogger was “penalized” to the tune of a CNY 1,200+ bill in February 2010 — because of excess use of Posterous, flickr and Twitter on the “renegade province” of Taiwan.

And this just as AT&T is giving that unlimited data plan a second thought…

China Blocks Foursquare; Too Many People Checking Into Tian’anmen

June 4, 2010 | Filed Under GFW, foursquare | 33 Comments

The Chinese censors are a sight to behold. As in how fast they react. It’s an open secret that while Twitter is probably chock-full of “the wrong people” (to the censors), the censors themselves are there, too.

Given that, well, are we surprised? China has blocked foursquare — apparently because we’ve seen too much of this

…and because foursquare speaks to both Twitter and Facebook, some of us posted that onto — right… especially Twitter. The censors probably went, “Ah…” and boom — blocked the site outright.

Jeepers. This is the stuff that must have the censors soiling in their pants. Virtually hundreds of people checked into Tian’anmen Square, the place where “something baaad happened” 21 years ago. Of course, the square itself is “safe” (in the real world) today, with cops even in helmets, as well as SWAT forces, all reported in the vicinity of the world’s largest square.

In place of student demonstrators and their banners, we have people basically filing into foursquare and leaving “sensitive comments” as “tips”. Those checking in included folks outside Beijing; @isaac (Isaac Mao), @rejon (Jon Philips) and the rest just flocked to the square, even if they were based elsewhere. (You can do this, by the way, by going to the Foursquare mobile site or even the main site and change your location — although if you’re not actually there, that could be seen as cheating…)

Can we call this politicized cheating — or a way to remind ourselves that something baaad happened on this day?

Foursquare. Dead to China beginning in the afternoon hours of June 4, 2010. (Confirmed here in Beijing.) You’ll have to reroute to get in…

Late night update: We have updates that this is indeed a nationwide block. Here’s a list of other cities in which foursquare is invisible: Fuzhou, Guangzhou, Hangzhou (thanks, @APE_kIng @EnjoyCHH @Marvinlou @warrenLOL for the updates).

Yet another update: Good news (if there’s any) for those who did check in: you automatically got the Swarm badge and the Player Please! badge. As they say, to every cloud there’s always a silver lining…

Why Turnips Are Sensitive in China

June 4, 2010 | Filed Under GFW, Twitter | No Comments

Go ahead, look up the Chinese word for turnip, 胡萝卜 (hu luo bo).

Chances are, unless you’ve ways around the Great Firewall, you can’t find it.

It’s not just because it has that sensitive word — Hu (as in Chinese President Hu Jintao) — in it, but because of… well, let’s take a look at this tweet by Chinese language tweep @geniusyrp:

Aha. Looks like carrots, or turnips, rather, aren’t just in the biz of being something to be fed to you. They have more “harmonious” tasks to do — stuff like to turn IPs. (That’s right: turnip = turn IP.) That would cause the censors to lose track of you.

Would the censors even think of approving this? (No way.)

PS: with today being the day it is, there are more polit tweets in Chinese than deemed healthy. Somehow, folks just have to let it vent…

When You Can’t Talk, Dodge

June 3, 2010 | Filed Under techblog86 spin | 2 Comments

And pretend it didn’t happen.

Just look at the timestamp of this post to see what period of time we’re in. Propaganda briefings have dispensed with what happened decades ago and just made reference to the fact that “the sensitive time and period is nigh”. Of course, Twitter and Facebook continue to be invisible to the nation of 1.3 billion and counting unless you “reroute”, but even local equivalents like, say, Douban, are feeling the heat.

“Be sure to handle the situation correctly,” goes the superior directive. Instead of letting folks “remember”, they’ve decided to basically make sure tomorrow’s as silent as it goes. Every year around this time, folks are on edge. The “counter-revolutionary riots” 21 years ago, as the officialspeak describe it, is both invisible and visible. Visibility is extremely high on Twitter and sites outside China, where people won’t just let the day go by without muttering something about it. And yet, if you’re local, chances are your fellow locals are either too scared or too misinformed to know or talk anything about it.

When you can’t talk, dodge. Lest any kind of “e-uprising” or “e-remembrance” take place, sites in China are already in the business of silently limiting what you can do with your signature, avatar, or anything like it. Interestingly enough, they’re already shooting themselves in the foot. The misinformed (to whom what happened tomorrow years ago is supposedly unknown to them) will find out that using certain numbers, or even wearing certain colors, might land them in hot soup. And then they might know for once and for all what happened. The attempt at silencing things actually gives the game away: by being more silent, you’re making what you don’t want known all that more known.

Most likely than not, tomorrow will go by silently. Interactive sites will choose to do their yearly maintenance this time of year, which in itself is an euphemism of sorts.

Thing is, folks likely won’t forget. (At least those in the know.)

Real IDs Needed For Online Shops in China As Of July 1, 2010

June 2, 2010 | Filed Under Net Regulation | No Comments

Yet another case of the online world meeting offline red tape.

With effect from July 1, 2010, the Chinese State Administration for Industry and Commerce has decided that its Temporary Management Regulations on Internet Product Trade and Related Service Guidelines (《网络商品交易及有关服务行为管理暂行办法》) will kick into effect.

The incredibly long worded temporary bill will, in effect, link every online seller in China with an ID in the “real world”. This means that behind every seller will be an actual, living human being.

The new bill is seen as somewhat annoying but less of having a chilling impact (unless your scope of sales is illegal, whereupon the authorities will be more than pleased to “harmonize” you), but is seen as yet another case of red tape touching digital territory. If you sell things without a license, you’re in for a fine to the tune of CNY 10,000 — 30,000.

Still, here’s another thing to keep in mind: the new bill does not make business licenses mandatory. Nevertheless, that’s the only good news. The rest are more bureaucratese: you’ll need to keep sales records for at least two years, and in three years’ time, a full, national, interlinked commerce management system will be in place.

Han Han: You’ve Got To Be Careful When Blogging in China

June 1, 2010 | Filed Under Blogosphere | No Comments

Taiwan’s Central News Agency just has a report in today which mentions arguably China’s more popular Chinese-language bloggers, Han Han. Presently aged 27, the writer-turned-blogger-and-race-car-driver has been equated somewhat with the author of “Charter 08″ Liu Xiaobo in the sense that both are in sensitive territory. (Liu is now in prison on charges of subverting authority.) Han, this time, is quoted as saying that he’s walking a very thin wire and could probably end up arrested one day.

The article quotes a CNN interview with Han where Han is quoted as saying that blogging in China is like walking a tight rope. “You’ve got to be very careful, because there are no associated laws in telling you how you can write a ’safe’ or ‘dangerous’ article,” says Han. He’s also not for imprisonment due to what one writes, but admit he’s powerless if he’s captured.

Han has had clashes not only with other so-called public intellectuals, but more of note, with the censors. Quite a number of Han’s articles, published on Sina Blogs, have been either heavily modded down or altogether taken down. Han is Sina Blogs’ most popular blogger, but at a price: being hosted in the PRC, Sina Blogs benefits by not being “harmonized” by the Great Firewall, but also offers less First Amendment territory. In essence, publish anything taking those in power to task, and step a bit outside what’s acceptable — and you could be in trouble.

Taking blogs outside major portals and going overseas is one way out, but if there’s a number of articles that gets the censors’ goats, that’s it — you’re invisible in China. There’s a quote from this on the Chinese Wikipedia: “It goes without saying that if you’re blogging about democracy or politics and if it gets popular, that site is going to get hit by the Great Firewall.”

The Day That Twitter Was Supposed To Die

June 1, 2010 | Filed Under Twitter | No Comments

This post is a day ahead of what might have been an on-and-off, full year of Twitter becoming “invisible” or being “harmonized” in mainland China. By that, of course, we mean Twitter being blocked in China. The twentieth anniversary of what’s known as “some sensitive anniversary” got the authorities more than a bit upset — thereby granting it a license to basically shut down all major SNS sites outside China. For those of us still on SNS sites inside China, numerous limits were also placed. Censorship increased and appeared to go on and on.

That was June 2, 2009. @mranti (Michael Anti) warned tweeps that everyone’s favourite tweeting machine will “go under” — “soon” or “one of these days”. A year ago, that date finally “became true”. Along with Twitter, Facebook and flickr also died, and the then-new Bing also “went under”.

The funny thing is that although Twitter was supposed to be completely “dead” (the API block coming an hour or so after the initial twitter.com block), it wasn’t the case. We switched to other tools, such as iTweet, which were blocked months after the “sensitive anniversary”. We set up our own Twitter sites, such as Twitese, which also got blocked. For those of us with the tools, we did VPNs. There was always a way for us to tweet. When @thomascrampton came to town in August 2009, he was positively amazed that everyone heard of the tweetup — via Twitter, of all things. Before Twitter got blocked, we had only a couple hundred tweeps around early 2008. The 2010 stats now speak of over 150,000 tweeps, 100,000+ of these China-based.

The censors had wanted to stop Twitter. Instead, they did what’s known as a bang dao mang (帮倒忙); instead of nixing Twitter, they helped it spread like wildfire. It’s a fact of life that active Twitter users are tracked by the cyberpolice, who are also present on Twitter and have been known to follow “sensitive people” and harmonize, or censor, any third-party Twitter site being promoted like wildfire. There have been cases of people tweeting much-too-sensitive content and being called into the police office for interrogation, and to be ordered to stop blogging “all this negativity”.

Yet despite official disapproval, Twitter is not gone from China. Radio broadcasts make reference to Twitter and nobody gets fired. The printed media also makes the rare reference to Twitter at times — apparently without serious consequences. While much of the Chinese Web (”official” Web rather) may have gone onto Sina Microblogs, Twitter has managed to thrive. People know that because Twitter does not censor (once you can get into the service), Twitter comes closer “to the truth” than “eunuch-ized” local microblogs.

It’s that old adage at work, once again: when there’s a will, there’s a way.

CHINICT 2010: The Investors

May 28, 2010 | Filed Under CHINICT | No Comments

This is a summary of tweets sent during the interview.

Lara Farrar (CNN.com) and Jeremy Goldkorn @goldkorn (Danwei) will be doing live interviews.

  • Masashi Kobayashi, Infinity Venture Partners
    • First onstage: Masashi Kobayashi, Infinity Venture Partners, interviewed by Lara Farrar.

    • Tokyo-based. They’ve funded GREE. USD 2.5B market cap.
    • Would like to help build global companies.
    • Interest from Japanese investor firms.
    • China — massive population. Huge users. Mix between learning from China but making money in Japan.
    • Last they they invested in 4 companies. Gaming, social gaming, mobile gaming.
    • Kobayashi’s background is in gaming.
    • Social gaming in Japan is more mobile phone-based. (It’s obvious. Keitai bunka in Japan.)
    • What’s going to be hot, especially from JP perspective, here in CN? Social game industry it’s still hot; especially hot in JP (PC-based social gaming.)
    • Local team-wise: operations in China? Exact size of fund?
    • 3 managing partners — mentions Akio Tanaka (also talking soon). Size is USD 250M. Focus on social Internet business.

    Next up: Keytone Ventures — Eric Tao

    • Eric Tao interviewed by Lara Ferrar.

    • Founded with a group of very experienced people. Strong, solid track record. 5 NASDAQ-listed companies.
    • Committed to investing in hi-tech, clean tech early-growth venture companies.
    • Never easy to start a new venture, but now it’s a realistic opportunity; they’re building up new platform.
    • Investing in China is very different from US or rest of the world. Good and bad. Anyone with an idea could start a venture: good.
    • Not-so-good: talent pool in shortage; you’ve got to worry a lot before starting off with a new idea.
    • Coming up with excellent idea in US it’s difficult. Execution the hard bit in China.
    • They need to see a proven product, or a proven business model, and they’re ready to deliver and execute. Develop one product.
    • Focus on one item first before expanding into new territories.
    • Early stage has different definitions in China, US.
    • US would like to back concept-backed businesses. Need those with solid track records.
    • Size of fund in China? Closed first funding late 2009. Now in stage of raising next fund. First fund USD 200M. Looking at same size.
    • Very early-stage focused here in China. New era of mobile comms. Including more data instead of just voice.
    • Mentions Borqs.
    • Entrepreneurs have to speak both languages — both multinationals and very traditional mindset people (eg local gov).

    Next up: Keytone Ventures — Harry Man

    • Harry Man interviewed by Lara Ferrar.

    • 30 years, headquartered in Boston, SF office too; but CN office only since 2008.
    • Companies invested in: Anjuke. (First invested by Matrix US, Matrix CN.)
      China market is a BIG market.

    • People do copy, especially in hot industries. Up to 300 copycats in China.
    • They value people with experience in China. Everyone here pays a price to learn the market; navigate it, etc.
    • Number of years in China do matter; the longer, the better.
    • Reacting quickly matters a lot. #CHINICT
      More beneficial for a Web company to go to the US.

    • What kind of company is good for what kind of stock exchange — need to take a GOOD look…

    William Bao Bean — SOFTBANK CHINA & INDIA HOLDINGS

    • Focuses on early stage, USD 1-5M, tech, telecom, media, consumer.

    • 1/3 China, 1/3 India, 1/3 Southeast Asia. William’s focus: 6 companies in China; some in Vietnam.
    • William Bao Bean: some are seed, they’re very early stage. Pre-Stage A.
    • Fast execution / sprint mode. Big in Silicon Valley.
    • On R&D side: huge amount of opportunity; but early stage is what William is after.
    • Investors branching out worldwide that are based in China probably not that successful.
    • Talks about walled gardens. US: Facebook. CN: most large portals are walled gardens. Net less open in China.
    • Wiliam: How can you open a closed model?
    • Moving forward: hottest areas this year? Media players, big brands, Internet players. 3 different sub-cultures.
    • Arbitraging the three is an area of BIG opportunity. eg Media players, paper, mags, they don’t understand the Internet.
    • Analytics, tracking, lead generation is what William is into.
    • Here in China it’s more open as in to tracking. Not the case in Europe.
    • William tries to stay as far away from government controls as possible.

    Silicon Valley Bank

    • Jeremy Goldkorn @goldkorn is interviewing Michael Yahng from Silicon Valley.

    • Yahng is actually a banker. “Sure, that’s why I’m dressed this way.” :-)
    • Banking very regulated in China. Silicon Valley Bank in existance for 27 years.
    • What’s he going to do in China? Create some big opportunities for someone like us. No. 1: Innovation.
    • Innovation is truly global business in the world. Must be focused on innovation worldwide.
    • China is no. 1 manufacturer in world (MADE IN CHINA). Now they’re trying to innovate (INVENTED IN CHINA). 60%+ CN’s growth: inno: CN, 2020.
    • If we could have opportunity to have same banking opportunity in CN as we could in US, we’d make a big contribution to CN.
    • Lots of regulations in terms of banking requirements, licencing.
    • Even if you have a banking licence, you can only do forex biz for first 3 years, only then can you do CNY biz.
    • Doing offshore, guarantee, probably while the wait is on.
    • Uncertainty in application of laws. Too often when a bank falls the boss runs out of town.

    Infinity Venture Partners — Akio Tanaka

    • Tokyo-based, but Canada-educated. Had a hard start in English. But now knows the lingo well.

    • Wow. He can do ActionScript in Flash? He’s also picking up Chinese.
    • Fear in Japan: Do business with China and get cheated. Akio doesn’t buy that.
    • Do all Chinese hate things made from Japan? Post-80s: they’re better Nintendo players than Akio!
    • Social games in Japan: maximum 39 people; it’s small. CN: 200-300 people. MASSIVE development power.

    Paul Asel, Nokia Growth Partners

    • Paul is going to be interviewed by @goldkorn

    • Investments made in CN: Madhouse (1 1/2 yrs ago); Kongzhong (1 yr ago); UC Global (recently)
    • Investing 10-15 companies globally; 2, 3 per year in China; no specific allocations.
    • Will see converge of Internet and mobile.
    • In China — huge rural population: SMS-based tech appeal to greater demographic?
    • When will the average farmer in, say, Hebei, have access to smartphones?
    • Most phones purchased in next 5 years will still be 2G phones. Will see blurring of distinction between smart phones and not smart.
    • Going through favourite investment: India. One company spread out. Went to Helsinki, Finland. Hundreds of staff there. IPO next.
    • Land in Bangalore, and 150 phones click on. It’s amazing.

    David Li, Intel Capital

    • David Li is to be interviewd by @goldkorn

    • Looking into different sectors. USD 500M fund size.
    • They’re looking at semiconductors; Li is more into the Internet, online.
    • Innovation is less about tech innovation and is more about execution.
    • For the US people pay by play time. In China it’s pay along the way. Although through socialized networks.
    • Clean tech / green tech: Looking into tech closely related with Intel strategic angle.
    • Two cases invested: amongst one is a Shenzhen-based company, company doing thin film, worldwide market. Solar tech.
    • Re: tech: this is not new tech, but their development procedure it’s much more effective.

    Tina Ju, KPCB Founding Partner

    • Tina, once again, will be interviewed by @goldkorn

    • Engineer by training; engineering degree from Berkeley. Next was Wall Street banking, 1980s
    • Exited investment banking after seeing companies growing up through IPO stage in 1999.
    • Wanted to bridge gap and went the other side. Investment.
    • Area of investment focus: clean tech, consumer, T&T, life sciences.
    • Macho world? She has experience.
  • CHINICT 2010: iPinYou

    May 28, 2010 | Filed Under CHINICT | No Comments

    In brief: Grace Huang, iPinYou Founder and CEO, talked about the largest behavioral ad network in China, and was interviewed by David Wolf.

    (Image coming soon… we know, sorry to keep you all waiting…)

    This is a summary of tweets sent during the interview.

    • Grace Huang, iPinYou founder and CEO, now interviewed by @wolfgroupasia

    • Came out of Peking University. Did McKinsey, Proctor & Gamble, Baby Depot. Online advertising.
    • IPINYOU — The largest behavioral ad network in China
    • She was educated first as an advertiser (starting out from P&G).
    • Literally for a year she was in front of the computer and started doing everything on the Internet. Stunned by power of this medium.
    • Looked back at how ads were done in China then. Knew there was an opportunity. Did it 2007.
    • Advertising is a message — a very important message — to consumers. When not matched it’s a disturbance.
    • Analyze everyone’s interests, then deliver relevant ads.
    • Profiling individuals. What does he / she want? Come out with ads.
    • Coming in from the US, she started being cautions re: privacy.
    • Ad is tech-heavy business. iPinYou is a hi-tech company in the eyes of the government. Very tech-driven.
    • Will you be plucked up by a larger ad conglomerate? Grace: It’s always possible.
    • Last question: Plans for the future? Biggest challenge you face growing this business?
    • What’s the biggest thing that’s keeping your business from exploding out of control?
    • This is a typical scale business. Mentions capital. Also market.
    • Many tiers of advertising this day in China. Very sophisticated.
    • Thank you. Lunch!

    CHINICT 2010: Niurenku

    May 28, 2010 | Filed Under CHINICT | No Comments

    In brief: Siok Siok Tan, Niurenku Founder & CEO, talked about a dramatic new market for online branding & advertising, and was interviewed by David Wolf.

    (Image coming soon… we know, sorry to keep you all waiting…)

    This is a summary of tweets sent during the interview.

  • Welcome to Subway Line @sioksiok.. The next station is Niurenku. Please get ready for your arrival.
  • David Wolf introducing Beijing’s Subway goddess, Siok Siok Tan. Of Twittamentary, Boomtown Beijing fame.
  • Siok: Asia’s next generation of educators, filmmakers. Now doing branded content.
  • “Siok, you’re finally commercial!” Siok: “I was always born in the ocean.”
  • Siok started in 2007 with Boomtown Beijing. Started out as “independent filmmaker” (note quotes): IS NOT ONE.
  • Does things for Discovery Channel.
  • Siok has done travel shows, cooking shows; more a creative director.
  • What’s Niurenku? That’s a consumer-facing brand: lots of videos about action sports, hip stuff.
  • Those videos are being viewed on Tudou, via social media. Logo is not big.
  • Subtlety of branding rare in China. BUT: therein lies the opportunity. But gap must be crossed. (Mind the gap!)
  • If you’re reaching folks under 30, they’re going to watch something that they think is “content”; subtle.
  • Siok watches TV only twice but she’s a TV producer.
  • Siok has always watched videos online. Only 2 TV encounters: May 12 earthquake, Beijing Olympics.
  • Way people enjoy content has changed completely.
  • You’ve to tell a great story and create an atmosphere of “us”.
  • A lot of people watch videos online but they’ve hard time proving to their bosses that the money is being well-spent.
  • Last Q: Seems like a biz anyone can get into with video camera, Mac. How do you prevent being copied out of business?
  • Execution is difficult. All about creating very high level content. Web of strategic partnerships.
  • It’s very labour intensive, it’s very hard work; especially if you’re doing this professionally.
  • Thanks Siok! :-)
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