Competition among China's Internet content providers is expanding from desktop PCs to hand-held terminals with the country's mobile telecom operators beginning to provide Internet datacom services.

From weather forecasts to real-time stock index checks, Internet content providers (ICPs) are rushing to offer value-added information services for handset users in an effort to occupy a portal position in the forthcoming mobile Internet market.

"It is time to think about putting the Internet in your pocket when the terminals and content services are ready," said Jun Wu, chief executive officer with Intrinsic Technology Ltd. The company recently opened a mobile Internet portacl Linktone to provide content service nationwide.

In addition to the dominant voice communications function, the new handset series, supported by the wireless application protocol (WAP), enables users to surf the Internet and use interactive services.

The world's leading mobile phone producers, including Ericsson, Nokia and Motorola, have already introduced WAP-supported handsets on the Chinese market.

The mobile Internet carves out a new market niche for China's ICPs which are fiercely competing to attract PC Internet users.

After China Mobile Telecom Corp announced it would provide datacom service late last month, many new mobile ICPs were established overnight, leaving doubts as to whether they will be able provide quality service in a short time.

"Given the current situation that Internet-enabled handset use is low and datacom transmission speeds are slow, we will initially provide simple living information services," said Wu.

Wu's Linktone currently offers on-line services ranging from news briefs and weather forecasts, to stock price checks and electronic mail services.

"After connecting with local securities companies, we can provide real-time and on-line stock transaction services for handset phone users," said Wu.

The e-commerce model of business to customer, widely applied by the country's current Internet companies, will also be transmitted to the mobile Internet platform.

ChinaDotman Corp last week joined hands with Sparkice's on-line EC123 shopping site to unveil a shopping mall on the mobile Internet. ChinaDotman opened the http://www.wapdm.

com website to provide mobile Internet services.

Banly Zhang, chief executive officer of ChinaDotman, said the application of WAP technologies enables Internet users to buy items on-line more conveniently through their handsets.

"The co-operation will expand our customer pool and develop a new market niche for us," said Edward Zeng, president of Sparkice Corp.

As with Sparkice, the country's other leading Internet companies may find it impossible to ignore an opportunity to enter the mobile Internet market. Both Sina.com and Sohu.com have signed co-operative agreements with WAP phone manufacturers to serve as special content providers.

However, difficult problems remain to be solved before the mobile Internet can become widely used in China. Experts said the top problem is how to set charges for Internet-enabled mobile communications.

"Generally, fees will be in three parts, voice fees, Internet access fees and information surfing fees," said Zhang Tai, an official with China Mobile Telecom Corp.

China Mobile is offering two-months of free datacom service use until the end of May. But the company did not specify final charges it will assess for mobile Internet services.

Experts said relatively low prices would encourage handset users to log onto the Internet with their handsets, rather than with their desktops.

Statistics indicate that the number of mobile phone subscribers is four times that of personal computer owners in China. This creates a basis for the wide application of mobile datacom services.

"The mobile Internet has more meaning in China where mobile handset users surpass the number of PC owners," said Michael Ricks, president with Ericsson China.

"The mobile Internet is about to enter daily lives in a big way, which will provide a virtual window on the world wherever we are and whenever we want," said Ricks.