The expansion of Xiaolingtong services across China has forced the country's mobile-phone operators to cut their charges in some cities, according to a report by investment bank Bear Stearns. For example, China Unicom is waiving fees for calls that its subscribers in Suzhou receive if they spend at least Yn60 a month with the local operator. China Mobile is offering corporate clients free calls from their colleagues if the company has at least 50 staff.
Bear Stearns said that Xiaolingtong had caused 'significant declines in CDMA market share and post-paid GSM pricing' and the impact would become more pronounced over time. Xiaolingtong charges are just one eighth of the normal mobile-phone tariffs, and only the calling party pays. China Mobile heads subscriber league China Unicom posted a 62 per cent increase in subscriber numbers in 2002, according to a report published by EMC, compared with a 32 per cent growth by its rival China Mobile. Unicom's strong performance was due to the launch of its CDMA network. However, China Mobile again topped the world league in terms of signing up the greatest number of subscribers in 2002.