SmartTrans surges on China deal

Leederville-based SmartTrans Holdings is set to take advantage of China's expanding 3G network after it executed an agreement with China Mobile that sent its shares up more than seven-fold.

Both parties have executed a memorandum of understanding which paves the way for the companies to negotiate the terms of a commercial contract as soon as possible.

Should the deal go ahead, China Mobile, which has more than 508 million customers, will deliver SmartTans' software pre-installed on new mobile phones and make it available for download by existing users in the Shanxi province.

The software allows for the distribution of applications and other digital content including games, animation, music and other multimedia.

SmartTrans said the software will be constantly connected to China Mobile which will enable easy management and update of content.

"The negotiations for the formal agreement envisage that SmartTrans will receive an upfront platform licence fee, an annual maintenance fee and in addition, will receive an ongoing revenue share with China Mobile for each application downloaded via the SmartTrans application management system," SmartTrans said.

"The SmartTrans product is expected to have wide appeal to China's rapidly growing young mobile-dependant generation."

Shares in SmartTrans closed up 3.3 cents, or 660 per cent, to 3.8c today.