Under the commercial agreement, China Telecom’s new brand ‘Love Finance’ will be promoted though a variety of channels including, but not limited to, mobile phone newspapers, text messages and WAP business channels.
Subscribers to Love Finance will pay CNY5.00 (A$1.00) per month for the SmartTrans product.
SmartTrans’ Managing Director, Bryan Carr said Love Finance is a product that aims to inform and educate subscribers on the latest financial news and personal finance products.
SmartTrans will be responsible for content management for the brand, which it will source from Ta Kung Pao, China’s oldest existing and also first online newspaper, while China Telecom will be responsible for the integration and launch of the products within the China Telecom customer network, ongoing business operation, marketing, promotion and payment collection.
In its statement to the ASX, SmartTrans says it considers the agreement with China Telecom is an excellent growth and revenue opportunity, “especially with the booming interest in personal investment and share markets in China”. “This is highlighted by the fact that last month 1.6 million new trading accounts were opened in mainland China over just five days (with 6 million for the month), eclipsing all previous records”.
Under the deal, SmartTrans will receive ongoing royalty fees from monthly subscriptions to Love Finance products, meaning that, once a customer is secured, the revenue will be “passive and recurring in nature from subscription holders”. SmartTrans also has the ability to earn further royalties for the purchase of additional content and upgrades.
“This ground-breaking deal is the culmination of SmartTrans’ established and strong relationship with China Telecom and the close working partnership we have formed with China’s oldest and most esteemed newspaper group, Ta Kung Pa,” Carr said.
“With the exploding interest in share markets in China we see this as a huge opportunity, especially through the captive customer database of users focused on finance and personal investment – this demographic will be particularly attractive to third parties who wish to promote a vast range of products and services, something which SmartTrans can certainly leverage.
“We will now focus on progressively increasing the range of offerings that we can promote and sell to consumers via this channel in order to maximise the value of this opportunity.”
“We have been working with China Telecom for some months on this deal and are excited to be launching the Love Finance Mobile brand in co-operation with two such strong and highly regarded partners as Ta Kung Pao and China Telecom. We look forward to updating shareholders on this exciting initiative as it progresses.”