BEIJING - Datasea Inc. (NASDAQ: DTSS), a Nevada-based company specializing in intelligent acoustics and 5G communication technologies, has announced the establishment of a joint venture with Shenzhen Yiyun Technology Co., Ltd. to enhance its presence in China's 5G multimodal communications sector. The new entity, Datasea Yiyun (Shenzhen) Digital Technology Co., Ltd., will focus on deploying artificial intelligence (AI) to advance 5G services, aiming to generate significant revenue in 2024.
The joint venture, formed on December 22, 2023, aims to integrate Datasea's technological expertise with Yiyun Technology's digital marketing and 5G operational capabilities. Datasea holds a 66% equity stake in the venture, while Yiyun Technology owns the remaining 34%. This strategic partnership is expected to leverage the world's largest 5G network and computational power to provide innovative multimodal data transmission solutions.
Datasea's CEO, Zhixin Liu, expressed optimism about the joint venture's potential to enhance the company's competitive edge and expand its customer base by offering more efficient and intelligent AI-based 5G services. The collaboration is set to play a crucial role in Datasea's growth strategy and diversification efforts.
DataSea Digital will serve as the primary platform for delivering Datasea's AI-driven 5G multimodal communication services. These services are designed to offer convenient and high-quality experiences for users, potentially benefiting a wide range of industries, including agriculture, logistics, media, and healthcare.
The establishment of this joint venture comes at a time when China's 5G market is experiencing rapid growth. According to the GSMA 'China Mobile (NYSE:CHL) Economic Development 2023' report, China had 805 million 5G mobile users in 2023, representing 46.6% of the country's mobile phone users. Projections suggest that China will be the first market to reach 1 billion 5G connections by 2025, with an estimated market scale of approximately $527.8 billion.
The press release statement indicates that Datasea and Yiyun Technology's joint venture aligns with the current market trends and capitalizes on the increasing demand for advanced 5G communication services in China.
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