August 23, 2007 -- On August 5, Beijing-based AsiaInfo Holdings Inc signed a contract with Jiangxi Mobile, a subsidiary of China Mobile, to provide an Over-the-Air (OTA) payment system, which will enable mobile subscribers to top up their prepaid accounts remotely.

"OTA payment system is to complement and expand the existing mobile payment in Jiangxi, the mobile customers can top up their prepaid account via text message, the Internet or via a call center," Xiaoqian Zhang, a spokeswoman for AsiaInfo, told Emerging China.

The OTA payment system will be set up with Jiangxi Mobile's existing operational system such as billing, customer relationship management and call center systems, and will incorporate sales, accounts and payment management functions.

AsiaInfo is a provider of telecoms software solutions and IT security products and services, enabling Chinese telecommunications operators to respond to market changes, and reduce operation cost.

Besides the deal with Jiangxi Mobile to provide OTA payment, AsiaInfo has also played a role in the construction of the provincial access networks for all of China's major national telecom carriers, including China Telecom, China Mobile, China Unicom and China Netcom.

"AsiaInfo has provided OTA payment services in Zhengjiang, Gansu and Tibet already. OTA helps China Mobile operate businesses in rural and remote areas. China Mobile customers do not need to go to faraway places to buy prepaid cards in rural areas," said Zhang.

OTA reduces the business outlets costs for prepaid cards. "It provides a more convenient manner of payment for local people. Therefore, it can also be seen as China Mobile's new marketing initiative," says Zhang.

With the development of the communications industry and widening of its customer base, Jiangxi Mobile has expanded cooperation with partners to provide more value added customer services. "Jiangxi Mobile is going to innovate its services to extend into the rural market; and as a partner, AsiaInfo [will] provide a flexible and reliable payment system," said Zhang.

"OTA has much space to develop into, but currently it does not have the right business conditions to do so," Yan Ping, an analyst at Haitong Securities, told Emerging China. He is also uncertain about how much benefit operators will benefit from it.