Data from Wireless World Forum?s ?China Mobile Market 2006? statistical handbook shows that mobile ownership stands at 325 million in 2005 a penetration rate of 26% and will rise to 415 million by 2007, a penetration rate of 33%.

Chinese operators reported 374.3 million subscribers in 2005. Wireless World Forum estimates this equates to 325.2 million owners after discounting duplicate and inactive accounts.

China has a population of over 1.2 billion inhabitants and although China boasts the largest mobile market in the world penetration is low at 26%. 80% of China?s population lives in countryside and it is saturation of mobile ownership in the cities rather than reaching a 100% penetration rate that will slow or cap subscribers growth.

ARPU remained steady in 2005 remaining at $10 pcm but will fall to $9.2 pcm in 2007.