There's good news for China's cell phone users.

The country's largest cellular operator China Mobile will cut its 135, 136, 137, 138 and 139 subscribers' cell phone call fee by one half across China. Shanghai is to put the cuts into effect within two weeks.

The wide use of the Xiaolingtong, or "Little Smart" phones has effectively taken away part of the company's customers because of its cheap rate of 20 cents for 3 minutes. But up to now China Mobile has been keeping its local call fee at 40 cents per minute.

Han Kaili, professor from China Post and Telecommunications University says with a fiercer price war the cuts were inevitable.

"No mobile operator will be willing to cut prices. But as competition heats up, it's also natural that they should seek this strategy." Han said.

Currently, China Mobile subscribers have to pay 50 yuan in monthly fees and 50 yuan frequency usage fee per year. After the price cuts, subscribers of China Mobile customers will be charged by 0.20 yuan per minute for local calls. If subscribers want to dial China Unicom's cell phones or fixed phones, the price will remain as it is.

(CRI.com July 12, 2005)