Mobile phones will soon surpass personal computers as the preferred device for Internet users in China over the next three years, according to a top official of mobile Internet firm UCWeb.

Yu Yongfu, chief executive of the venture-funded UCWeb, said mobile Internet users in China would jump manifold as 3G services expand in the country.

"With China aggressively pushing 3G services, I think by 2011 most users would use mobile phone, rather than personal computer, to surf the Internet," said Yu.

He reiterated that the company would look for an overseas listing of its shares, either in Hong Kong or the NASDAQ, to cash in on the burgeoning mobile Internet populace.

According to figures from China Internet Network Information Center (CNNIC), mobile Internet users in the country reached 155 million by the end of June this year, an increase of 32.1 percent over last year's figures of 117 million. The number of computer-based Internet users grew 13.4 percent to 338 million during the same period.

"Compared with computers, mobile phones have a lot of limitations like smaller display screens and keyboards. But the handsets also have unique advantages like personalization and mobility," Yu said.

He said with the boom in 3G services like mobile search, location services and mobile video, handsets would score over other devices.

Since its establishment in 2004, UCWeb has been extremely popular with Chinese mobile phone users. Company officials said its free Internet browser optimized for use on cellphones can reduce data traffic by 80 percent, thereby offering huge cost savings.

The company has 80 million registered users and nearly 50 percent of them are active users.

Yu said UCWeb's revenue comes mainly from value added services and online advertising shared by companies such as Baidu and Google. He said the company is also trying to copy the current Internet business model to mobile phones.

"Mobile Internet is an extension of the traditional Internet. So technically all the business models existing on the Internet could be transplanted to mobile phones," said Yu.

He said the company made considerable revenue last year, but refused to disclose any figures.

Venture capital firms Ceyuan Ventures and Morningside Group invested about US$10 million in UCWeb in 2007, while Alibaba Group, parent of Alibaba.com, also made an investment in May.

According to figures from domestic research firm Analysys International, independent mobile Internet browser users soared to 132 million in China during the third quarter of this year. UCWeb had a nearly 61.3 percent market share in this segment, much higher than its rival Opera Mini, which had only 25 percent market share.

Fang Li, analyst from Analysys International, said with the number of mobile Internet users growing, competition in the mobile browser market would also intensify. During the third quarter of this year, one of China's largest mobile portal website 3G.cn and Internet company Tencent entered the market by launching their own mobile browser.

Yu said UCWeb runs on most major mobile platforms like Symbian, Windows Mobile, Java, Brew, MTK and iPhone.

He said the company would soon launch an English version of its product in the overseas markets.

(China Daily November 24, 2009)