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Finance
Business> Finance
UPDATED: September 30, 2007 NO.41 OCT.11, 2007
Dreaming One Dream
3G.CN founders Deng Yuqiang and Zhang Xiangdong found a way to turn their cooperation into a story of success
By GAO YULEI
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Deng was sentimental about the two rounds of financing. He said financing is a necessary step for Internet enterprises in China. Unlike traditional sectors, profitability on the Internet is not immediate. It needs to be integrated with investment. After reaching a certain stage, seeking investment is beneficial to the development of the company. The process of financing is repetitive. You have to tell the same story to investors over and over again, telling them what the company is and will be doing.

Preparing for the 3G

"In the WAP domain, the company I admire most is the WAP service run by Kong.net," Deng said. "I think their overall design and grasp of content are superior. Kong.net is the best among all service providers."

Zhang believed the omnipresent advertisements of Kong.net have popularized the wireless web, which is good for the industry.

Since last year, China Mobile has tightened its supervision on service providers, causing a large number to go bankrupt or switch their mode of operation. At the same time, China Mobile has started to acquire content providers in an effort to integrate content providers and service providers.

"Everyone in this business will be affected by the policies of China Mobile; after all it controls the channel," said a telecom expert. Naturally, 3G.CN is also under monitoring.

Deng was not concerned. "On the industrial chain, the network operator plays the role of basic operations," he said. "But we, the service provider, always consider ourselves a partner of the operator. Both China Mobile and China Unicom need good content and service providers, and 3G.CN is a good one. At present, all we need to do is to nurture our user community and explore new modes of business and new directions."

In 2006, the Ministry of Information Industry clearly indicated that the 3G network will be operational before 2008. 3G is being tested in many cities across China. In this case, what will the 3G network bring to the website 3G.CN?

"I think the concept of value-added services will be greatly expanded when 3G arrives," said Deng.

Regarding specific value-added services, Deng believed the initial offering of 3G services could include brand new applications such as video calls, streaming media and video; and after this phase, there will be more applications servicing the daily needs of users. Initially, entertainment will be the main theme, said Deng.

"All you need is to install the software on your phone that runs Windows CE," said Zhang. "Linux will also be supported at a later date. These phones will sell for about 1,500 yuan, an acceptable price for all young people who wish to make the change. In the 3G age, all mobile phones will be smart phones."

Philosophy of cooperation

Deng maintains the constraint and prudence of a Guangdong native and the meticulous and precise attributes of a technician. Zhang, his Shaanxi-born partner, presents the image of a modern "martial-arts hero." Many people pose the question: How do two persons of completely different appearance and temperament work so well together?

"Actually we don't have a great desire for power individually and are not keen on controlling another person or a company," said Deng. "We are down-to-earth people with different personalities. We work very closely together. The things he's not good at, I usually am, and vice versa."

Zhang said they had some arguments at the beginning and admitted that he is not as good as Deng in technology and business. He admires Deng's business instincts. "Sometimes I think wildly about the macro levels, but my ideas are usually quickly dismissed by him," said Zhang. "Later events usually prove that he was right most of the time. I let him deal with the technology stuff. He suggests something and I do it. I usually do the coordination work so that no efforts will be wasted."

"We definitely have [differences], but we also have a basis for cooperation," he said. "Our values are almost the same and our judgments of the matter itself are consistent. This way, we can put all the issues on the table for discussion."

Finally, the two summarized the success of their business. First, satisfy the requirements of the users. Second, lead in technology and prevent others from copying. Third, charge without hesitation the things to which you have the copyright.

"You'll be successful if you can satisfy anyone of these three points," they concluded.

(Xinhua Finance)

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