China Mobile, the country's largest mobile-telephone operator, aims to sell more internet-based services such as digital music to help ease falling income from voice services, according to a company executive. The firm could expand revenue through online advertising and music downloads, vice-president Liu Aili told an industry conference in Beijing this week. Earlier this year the company launched a new instant messenger service, Fetion, which works on internet and mobile platforms. 'The emerging broadband internet in China has created new challenges to telecommunications operators, as services like instant messenger and voice over internet protocol are all based on broadband, which would threaten our traditional business,' Mr Liu said. 'We need to keep pace with the growth in the internet sector,' he added. The mainland's internet market generated 276.7 billion yuan in revenue from individual users last year, up 47 per cent from a year earlier, according to the China Internet Guide published by the China Internet Society. Despite China Mobile's fast subscriber growth, the company's average revenue per user had been falling because of pressure on voice tariffs, Mr Liu said. He estimated that mainland telecommunications operators would generate 20 per cent of total revenue by 2012 from internet services, up from only 2 per cent last year. Meanwhile, Henan Mobile, a unit of China Mobile, announced that it would spend two billion yuan to upgrade its existing GSM network to the higher-speed Edge network. Nokia Siemens Network is the sole supplier of the project.