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China Unicom hopes CDMA will stop falling average revenue

BEIJING—China Unicom, which will launch commercial operations of its CDMA network early next year, hopes average revenue per user (ARPU) will be more than the 92 yuan (US$11.11) generated on its existing GSM network. ARPU dropped 25.5 percent in the first six months of the year from 124.3 yuan (US$15) to 92.5 yuan (US$11.18).

The Hong Kong-listed arm China Unicom will pay 74.6 yuan (US$9) per subscriber per quarter to lease the CDMA network from its parent company China United Telecommunications.

The company will not offer prepaid packages or the customary 10-percent discount compared with rival China Mobile that it offers on its GSM network. China Unicom is clearly targeting high-end users who are not looking for price discounts. The company expects to sign up 2 million users in the first quarter of next year.

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