China’s mobile subscribers are expected to hit 402 million by the end of 2005, Xinhua news agency reported, citing government researchers.

Yang Qing, deputy director of the research institute under the Ministry of Information Industry (MII), said mobile users have increased rapidly in recent years with mobile services now accounting for 42 percent of the telecom sector’s revenue this year, compared with 37 percent in 1999.

Yang also expects fixed-line subscribers to increase to 360 million at the end of 2005.

He said China’s telecom market is still in a rapid period of growth with room for further expansion. He expects the telephone penetration rate to continue under 40 percent in the coming three years.

Growth in fixed-line users will slow down from the current stable growth rate, Yang said.

China signed up 59.97 million new mobile subscribers in the first 11 months, bringing the total to 329.92 million. The country had 50.41 million new fixed-line subscribers to bring the total up to 313.16 million at the end of November.

Xiaolingtong, which offers limited-range mobile phone service, is a major driver behind fixed-line subscriber growth. Xiaolingtong is offered by the leading fixed-line companies China Telecom and China Netcom, according to official statistics.

(Shenzhen Daily December 30, 2004)