Key questions and answers from the first quarter fiscal 2007 earnings call conducted by AsiaInfo Holdings, Inc. (ASIA: chart) on April 25, 2007.

Regarding your providing the bidding on the CRM through the TD-SCDMA trial, do you expect them to introduce second and potentially third sources there, or do you think for a little while they might be safe to just have one source?

Right now, the company is the only provider in the provincial trials. It’s the company’s intention to do a good delivery job, and hopefully when China Mobile wants to push for full-scale deployment this will be a competitive advantage for AsiaInfo in winning the entire contract.

What functionality have you built into the Mobile Device Management that would be interesting?

Device Management main purpose is to support China Mobile’s initiative for their own handset introduction in the future. The handset is becoming more and more sophisticated, and all the smart phones plus China Mobile’s own branded handset want to have over-the-air support and upgrade capability. AsiaInfo is building this Device Management platform for China Mobile to enable them to do that upgrade, the plans that parameters gather, and all over the air, and this will enhance their wholesale support, but they also want to be able to identify what kind of terminals, what kind of plans that the regular consumer is using and based on the plans and parameters, they can push tailored state applications onto the handset.

Will there also be specifications, either within the current product or within future iteration of the product that would serve the security interest of a user or the service provider?

The company has just signed first phase of the contract. Right now AsiaInfo is in the delivery process for the first phase contract. The company already has a team working with the clients, working in the specifications for the second phase to go out. Security may not be in the second phase, but definitely will be in the future phase of that contract.

What’s your estimate of the market size of China’s Telecom Enterprise Software market in the first quarter 2007?

The management believes that the entire Telecom BSS market size for the entire year is roughly $400 million.

What are your estimates of the growth rate for that market in 2007?

There is a lot of uncertainty still related to the 3G license issue and if this uncertainty is resolved, the company believes the market should grow 15% to 20%.

How do you charge China Mobile on the device, handset device, and management? Is that a one-time R&D effort or do you actually charge them per handset received?

It’s not a per-handset received charge model. It’s based on time and material. But this kind of project is similar to the existing dealing in the CRM project and in the future there will be maintenance revenue, there will be upgrade revenue.

And for this phase of the development, does that cover certain provinces?

No, it’s only a headquarter centralized trial system. If it goes very well, it will go out to provinces because, as you know in China, China Mobile has a huge subscription number and one centralized system won’t be able to scale to support 350 million subscribers. In the company’s current design, China Mobile is going to be on two levels, the Centralized level and the Provincial level. In the first phase, AsiaInfo is helping them to build and trial the headquarter system.

Is it fair to assume that that could turn into a major contribution to your revenue in the future?

If this system floats out across the provincial subsidiaries, there will be a major market opportunity for AsiaInfo and the management has expectations for this new solution.

Regarding the Push email with China Unicom, do you expect that China Mobile will launch a similar product and you will be helping them to do that?

China Mobile is already working with Research In Motion to deliver the Blackberry service in China. So AsiaInfo is not involved in providing Blackberry type of Push email services with China Mobile.

It is said that China Mobile may have a lower cost version of the email system. What is your comment?