Shares of Datasea (NASDAQ: DTSS) are rocketing on Thursday after the technology company said it has established a new subsidiary named Shuhai Zhangxun Information Technology Co., Ltd to explore opportunities in 5G.
Datasea said the move was part of its initiative to leverage its technology capabilities to expand its business coverage and create new revenue streams.
Shuhai Zhangxun will be dedicated to exploring 5G value-added services opportunities which came about as part of the combination and extension of the Company's smart security platform, big data platform and other technical capabilities.
Zhixin Liu, CEO of Datasea said: “We firmly believe in the future of 5G and have been exploring opportunities in this field. Our technology shares a particular connection with 5G messaging known as Rich Communication Services (“RCS”), which enables us to develop services related to 5G messaging.”
“According to Global System for Mobile Communications Association, as of September 2020, 90 mobile network operators worldwide have launched RCS with 473 million global monthly active users, with the RCS market estimated at approximately USD $74 billion by the end of 2021. We believe that 5G messaging can improve both retail and business user experiences,” continued Liu.
Datasea shares have exploded higher, currently up 133% at $5.57.