Shenzhen-based Internet giant Tencent Holdings Ltd on Tuesday fired a fresh salvo againstleading telecom operators with its Internet calling app for mobile gadgets.
The app, WeChat phone book, allows users to make free calls using wireless networks ortelecom operators' networks, send voice mails, use its phone book and even make high-definition quality voice calls. The so-called free calls can be made as long as the user links hisphone number to his WeChat account.
Although Tencent tried to maintain a low profile and hardly gave the new app any publicity, itsploy of releasing it on Singles' Day, when most people are obsessed with online shopping,seems to have paid off. Due to the large number of users of the new app, the service remainedunavailable on Wednesday morning and it was forced to update users frequently on whenservices would be restored.
Such a customer frenzy, however, is not a new experience for Tencent as the number of activeusers of its services on a monthly basis surged to 438 million by the end of the second quarter ofthis year. But the new app's performance on the second day shows that it is still quite unstableand provides less-than-satisfactory user experiences, said Wang Ningyuan, informationtechnology industry researcher at the Shenzhen-based CIC Industry Research Center.
Zhang Yunqian, an administrative director at a multinational manufacturing company based inShanghai, said the first impression about the app was not that good as Tencent was notprepared for the load and the large number of bugs that emerged. But she said she was notaverse to trying the app as it would be a good choice for free conference calls.
Even though Tencent said that the WeChat phone book will allow users to make free calls, therewill still be charges for wireless network or the use of telecom operators' networks. The chargewill be between 0.03 yuan (0.0049 cents) to 0.15 yuan.
Industry experts also expressed concerns that Tencent's free app would affect China Mobile Ltd,China United Telecommunications Corp Ltd and China Telecommunications Corp, the top threetelecom operators.
"In terms of convenience, charges and number of users, the new app is still nothing comparedwith the facilities offered by the three telecom operators. But it has upped the ante for operatorsto improve their services and lower charges," said Wang from CIC Industry Research Center.
Jiang Jianlin, a senior market analyst at the global market intelligence firm IDC China, said thatthe new app is a Tencent ploy to defend its turf in instant messaging and social apps. But thereare also two factors that companies need to be aware of.
"The first is whether the service is legal and has got the necessary approvals. The industryregulator had refused permission for such services some time back and it is still not clearwhether the same has been permitted now. The other question that comes to the mind is whetherChinese users, or the market, are willing to use such services instead of normal calls. What themarket needs is not clear," said Jiang.