Intense competition has forced China Resources Peoples Telephone to follow its mobile-phone rivals and offer handset subsidies. The company booked earnings of $63 million for the third quarter compared with $62 million a year earlier. Vice-chairman Michael Leung Kai-hung (above) said as competition stiffened, the company had to do the best to defend its customer base and entice newcomers through such offerings as handset subsidy. He dismissed the threat coming from 3G, saying that people rushed to 3G networks because of attractive packages not a technology edge. 'So far 3G has solely relied on marketing campaigns such as giving out free phones to acquire customers,' Mr Leung said.