Focus Wireless's Business Model

Implications: Simply put, Focus Wireless collects mobile subscriber numbers and private information through legal or illegal means, processes the subscriber data into categories such as business owner, car owners, bank VIPs, etc...  Focus Wireless then tries to target the mobile subscribers with targeted advertisements via spam SMSs.  The SMSs are sent out by its subsidiary companies or its partners. The problem of Focus Wireless is the scale to which they have employed this kind of questionable business practice.  They claim that they can reach 200 million subscribers.  The CCTV's investigation has created a discussions and debates on the Internet on where the boundaries lie for SMS-based targeted advertisement. 

Analysis: Could the Chinese government or the mobile operators decide to crack down on this practice? Similar to the crack down on the wireless value-add services sector in the past two years?  Since then, the wireless value-add services sector has seen many companies going under even some good ones... 

Very likely the IPO process of Focus Wireless will be put under scrutiny by the government officials.