China Unicom expects its soon-to-be-launched code division multiple access (CDMA) services to generate average revenue per user (Arpu) of more than 92 yuan (about HK$86.20), helping it stop the trend of falling average revenue.
'Our CDMA network will generate a higher Arpu than our GSM network, which was 92.5 yuan in June,' chief financial officer Shi Cuiming said.
China Unicom saw its blended Arpu for mobile services drop 25.5 per cent in the first six months, from 124.3 yuan at the end of last year to 92.5 yuan at June 30.
China Unicom will pay 74.6 yuan per subscriber per quarter to lease CDMA network capacity from its parent China Unicom Group, which has budgeted 24 billion yuan to build the first phase of the network.
Mr Shi said due to the low leasing price, the Hong Kong-listed arm would be profitable once it started the CDMA services.
China Unicom said better services, and not price discounting, was its main strategy to attract subscribers to its CDMA network.