China Unicom says 3G ARPU more than double GSM

HONG KONG Nov 18 (Reuters) - China Unicom (0762.HK), the country's No.2 mobile carrier, said average revenue per user (APRU) for its 3G services is rising, passing the 100 yuan ($14.65) mark and more than double that of its GSM service.

"Competition and the selling points of 3G have seen a move to value-added data business from voice services," Unicom chairman Chang Xiaobing told reporters.

The company's GSM ARPU had declined to around 41.6 yuan in the first nine months of 2009, he said.

"We recognise clearly that it is difficult or even impossible to boost per-unit spending in the voice market," Chang said, adding that the voice services market was already mature in many countries.

But he noted that there was still growth potential for voice services in China's rural areas.

Unicom's 3G network covered 285 cities in China at the end of October, and would expand to 335 cities by the end of 2009, Chang said, adding that in the first half of 2010, the network would cover all cities and major towns in the country.

Unicom and rivals China Mobile (0941.HK), the world's No.1 mobile carrier, and China Telecom (0728.HK) are launching 3G services this year, which analysts say will increase competitive pressure to attract subscribers to the more lucrative service.

Rising competition and expenses associated with the 3G rollout was a prime reason that all three carriers reported disappointing quarterly earnings last month. ($1=6.827 Yuan) (Reporting by Doug Young and Joanne Chiu; Editing by Chris Lewis)