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July 19, 2011

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Telco eyes cheaper 3G phones for users

CHINA Unicom, the sole partner of Apple for the iPhone in the domestic market, aims to launch more entry-level 3G phones to woo low-end users and boost its third generation business, the country's No. 2 telco said yesterday.

Handset makers have unveiled new models that operate on the telco's 3G WCDMA network, including a smartphone equipped with Alibaba's cloud computing services and a Motorola model, XT316, costing 1,000 yuan.

The telco will also launch two new self-branded Wo 3G models and a self-developed operating system for mobile phones and tablet computers today.

"China Unicom now operates the world's biggest WCDMA network and a richer variety of WCDMA models will help us boost our user base and revenue," Chang Xiaobing, China Unicom's chairman, said during the telco's WCDMA forum and exhibition.

By the end of June, China Unicom had 23.9 million 3G users, the Shanghai-listed firm carrier said in a recent statement. It added 1.85 million during the month, higher than the 1.74 million 3G users gained in May.

China Unicom will launch more Android platform phones that cost about or less than 1,000 yuan (US$153), which may attract more users in China, the world's biggest mobile phone market, said Lu Yimin, the telco's general manager.

"The low 3G penetration rate in China represents a huge potential to grow 3G in the country, especially in WCDMA," said Zhao Xinyu, general manager of GFK China, a Germany-based research firm.

China's 3G user base is about 70 million now and it may hit 100 million by the end of this year.

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