Chinese mobile users hit 426m

Growth slowing as market waits for 3G

Simon Burns in Taipei, vnunet.com 23 Aug 2006

China had more than 431 million mobile phone users by the end of July, according to government statistics published today.

The Ministry of Information Industry (MII) data indicated that some 38 million new mobile phone users have picked up their first handset during the past 12 months.

With roughly one third of the population equipped, China has more mobile phone subscribers than any other nation.

The MII has predicted that the country will have 441 million mobile phone users by the end of the year, indicating that the rate of growth is slowing slightly.

Local research firm Analysys International put the total number of mobile subscribers slightly lower at the end of June at 426 million, representing a 4.08 per cent increase over the year's first quarter.

The growing subscriber base is good news for service providers. China's wireless value-added service market grew 5.76 per cent quarter-on-quarter to reach $827m, Analysys reported.

This market includes mobile data services offered on top of basic voice communications, such as instant messaging.

China's government currently limits foreign shareholding in mobile service providers, but will double the limit to 49 per cent at the end of the year.

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