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SMARTPHONE RIVALS READY TO ENGAGE

When China Unicom launches third-generation telecommunications next month, it hopes to celebrate with a deal to sell Apple's iPhone exclusively in the country for three years.

China's second-largest operator by subscribers and revenue is nearing a deal with the US group and, given the cult status of the device, China Mobile, the former monopolist, has reason to worry.

Following the government-ordered restructuring of the industry last year and the award of 3G licences in January, China Mobile's share of monthly net new subscribers had already fallen to 60 per cent in June from more than 95 per cent last December.

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