Falling costs spur phones rush

PUBLISHED : Friday, 23 April, 1999, 12:00am
UPDATED : Friday, 23 April, 1999, 12:00am


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A cut in telephone fees in the mainland last month pushed up demand for mobile and home telephones.

Guangdong's subscriber base grew by 630,000 in the first quarter, following cuts in tariffs and handset prices.

The New Express , said 150,000 subscribers joined last month, 55,000 from Guangzhou. The rush was spurred by a reduction in network-access charges in Guangdong to 1,200 yuan (about HK$1,116) from 1,800 yuan.

There are now 4.2 million users in the province.

The price of handsets by brand-name vendors Philips and Motorola had fallen several hundred yuan, the newspaper said.

About 15 million new mobile-phone subscribers would be added nationally this year. The mainland had more than 25 million subscribers as of last year, with demand for handsets exceeding that for household appliances.

Demand for home phones also was strong, with about 100,000 applications in Beijing since tariffs were reduced on March 1.