CHL » Topics » Our ARPU Has Declined and May Further Decline in the Future

This excerpt taken from the CHL 20-F filed Jun 23, 2009.

Our ARPU Has Declined and May Further Decline in the Future

Our ARPU decreased from RMB90 in 2006 to RMB83 in 2008 and to RMB73 in the first quarter of 2009, primarily due to the fact that nearly half of our new subscribers are from less affluent rural areas and most of them are relatively low-end users. This decline was also due to the gradual implementation of the tariff adjustments. As we continue our “lower ARPU, lower MOU, lower cost” strategy in the rural areas, and with the continued implementation of the tariff adjustments, we expect that our ARPU will further decline.

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