China Telecom's alternative mobile service - which uses personal access system (PAS) technology - is attracting a growing number of subscribers, putting more pressure on the country's two mainstream mobile carriers.
The technology, which offers cheap but limited wireless phone services, is providing popular with low-end users.
The low-cost service offers good mobility but with fixed-line tariffs, which are much cheaper than mobile-phone rates.
UBS Warburg analyst Dylan Tinker said China Telecom signed up 800,000 users to its PAS service last month, bringing its total user base to five million.
Last month's figures were a sharp increase on September - the only other monthly figures available - when only 100,000 new subscribers were signed up.
Mr Tinker believed China Telecom would continue to focus on PAS services, rather than the more expensive rival global system for mobile communications (GSM) standard, which dominates the market.
He said PAS would be central to the company's fortunes even after it was divided next month into two new companies, which would be allowed to offer mobile services.
