Chinese Mass Transit WIFI Services from VisionChina


Premier Chinese advertising services provider VisionChina Media Inc. (VISN) recently forged a strategic partnership with China United Network Communications Group Co. Ltd., the second largest mobile communications operator in the country, to extend its national WIFI service networks on the public transit platform in China

The deal facilitates a seamless collaboration across mobile communications and mobile broadband and aims to launch WIFI service networks on public transit across China. The contract entails the mobile communications operator to devote its advanced 3G and 4G networks nationwide to support the development of VisionChina's designated national WIFI networks. These WIFI networks will be indigenously built by VisionChina on its existing nationwide mobile television media networks. The advertising firm expects to fully leverage its unique content creation expertise to provide commuters with enhanced interactive experiences along with high-speed mobile Internet access and other value-added mobile communication services.

The tactical move to rope in the services of the leading telecommunications operator is largely driven by demographic data that reveal an average daily commuting time of 50 minutes on public transit system such as buses and subways by millions of Chinese passengers. The partnership will enable VisionChina to successfully implement its mobile Internet strategy and extend its national footprint by allowing passengers an opportunity to enjoy a wide range of interactive activities via their mobile devices.

As one of the largest out-of-home advertising networks, VisionChina provides digital mobile television broadcasts to deliver content and advertising to display on mass transportation systems such as buses and subway networks. It also offers services to networks that deliver real-time programming including news briefs, stock market updates, weather and traffic information, sports highlights and entertainment shows mixed with TV advertisements.

VisionChina currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth considering now include Marin Software Inc. (MRIN), MDC Partners Inc. (MDCA) and Lamar Advertising Co. (LAMR), each carrying a Zacks Rank #2 (Buy).

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