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Shanghai's wireless-phone penetration rate surpassed 100 percent for the first time at the end of June, the city telecommunications regulator said Thursday.

 

The number of wireless handsets in Shanghai surged to 17.49 million, compared with 13.60 million local residents - a huge jump from the 30 percent penetration rate in 2002 and 80 percent a year ago.

 

Among them, mobile phone subscribers totaled 15.27 million through June 30, a year-on-year increase of 11.6 percent. Customers for the Little Smart system, a cordless phone based on the fixed-line network, numbered 2.2 million users, a 73.6 percent rise.

 

"Declining call fees, budget phones and increasing features were the main reasons for the dramatic rise," said Hu Yonglong, a senior official at the Shanghai Communications Administration.

 

Last September, the Shanghai branch of China Mobile reduced call charges from 0.36 yuan (4 US cents) to 0.18 yuan a minute. In January, the telecommunication operator went even lower, to 0.1 yuan a minute for customers who sign a one-year network agreement. They were also given an option to receive unlimited incoming calls for a flat 6 yuan a month.

 

The bill for a mobile phone is now competitive with that of a fixed-line phone, which costs 0.2 yuan for the first three minutes and 0.1 yuan for each additional minute, plus a monthly fee of 25 yuan.

 

Meanwhile, entry-level phones are flooding the market. Low-cost phones such as the Nokia1112 and Motorola C118 are priced at only 400 yuan, making them affordable for students, senior citizens and other price-sensitive consumers.

 

As new phone models with more attractive functions are launched, consumers, especially young people, are lured into trading up. From camera phones to PDA-style models, the new generation of phones integrates technologies such as MP3, Bluetooth and special security features for business and entertainment.

 

Meanwhile Internet users rose 44 percent to 2.72 million in the first half, among which 60 were broadband customers. Fixed-line phone users grew 11 percent to 7.09 million.

 

(Shanghai Daily August 18, 2006)