Mobile instant messaging (IM) is a hotter growth market in China than traditional instant messaging, reaching 50 million users and earning roughly $196 million in 2007, according to consultants at CCID in Beijing.

China Mobile’s Fetion controls 72% of that market, and Microsoft’s MSN has 3%.

“Meanwhile, as the integration between Internet and mobile network further deepens, the Chinese mobile IM market has shown a trend of diversification… China Telecom has launched its own mobile IM product, and has targeted the corporate users,” CCID stated.  Also, “The mobile IM will definitely reach the socializing segment,” they found.

Obstacles to the market’s success include customer awareness, a lack of premium services and a lack of 3G connections, according to the CCID.

The report does not address issues related to government censorship of instant messages.