Baidu and Tencent Develop Handset middleware

Tencent, Baidu,the two Internet giants have both signed cooperation agreements with MTK. Tencent's MTK mobile Chinese character input method, mobile Internet browser, and mobile instant messaging software QQ are ready to hit the market. Besides that, Tencent has also launched input method, mobile QQ and browser for Android mobile phones.

In the face of potentially huge 3G market in China, Chinese Internet search engine Baidu Inc. and comprehensive Internet service provider Tencent Holdings Limited (SEHK: 0700) are developing middleware for MediaTek Inc. (MTK)-based mobile phones.

Tencent is said to have got the support from the local government in Shenzhen to push forward its middleware businesses. The city has been known as the hub for Shanzhai handsets.

The latest numbers released by the Ministry of Industry and Information Technology (MIIT) show that by end of this June, China's 3G mobile subscribers totaled 25.2 million, in contrast to 800 million mobile phone users, representing a huge 3G market.

Tencent and Baidu's applications are expected to be widely used by Shanzhai handsets that are equipped with MTK's chips at the end of this year.