With 80pc of China's online instant traffic, small players battle to survive
Tencent, the largest internet company in China by market capitalisation, will have to decide this year whether it allows other instant messaging providers to connect to its hugely popular QQ platform.
QQ accounted for 81.67 per cent of the total active instant messaging service accounts in China last year, according to Beijing-based market research firm Analysys.
This means eight out of every 10 internet users in China are using QQ to communicate with their friends, classmates, colleagues and families online on a regular basis.
Without interoperability, it is difficult for new and smaller instant messaging operators to expand their business, as few users care to go through the nuisance of setting up new software on their machines, as well as asking each of their friends or colleagues to join the new service. A QQ user commonly has 100 people on their contact list.
For Tencent, led by chairman and chief executive Pony Ma Huateng, there is little to gain from connecting with a smaller player. At risk is the huge revenue it is getting from the platform.