China Unicom (Hong Kong) has predicted that capital spending this year will soar 30 per cent to 100 billion yuan (HK$123 billion) as it upgrades its mobile and broadband networks, and subsidises handsets.
The mainland's second-largest wireless carrier last year set a target of 25 million new users of its high-speed third-generation network, and attracted 26 million, but declined to detail this year's target.
The Beijing-based company also said its loss-making 3G business would see a turnaround this year.
'The growth in users of smart handsets priced around 1,000 yuan was so good in the fourth quarter that it beat our expectations,' said chairman and chief executive Chang Xiaobing.
China Unicom was formerly the exclusive partner carrier of technology giant Apple's iPhone on the mainland, but its rival China Telecom entered the fray last March offering the iPhone 4S to customers.
'China Telecom's move has had positive effect on us,' said senior vice-president Li Gang. 'Since they joined, our sales volumes have been increasing.'