Little Smart has launched a new PHS phone in Zhejiang province that separates the SIM card from the phone.

Previous Little Smart phones had the SIM and phone bundled together, but this new service will allow consumers to mix and match phones with their SIM cards. This type of Little Smart service will retail for CNY400-CNY800.

Little Smart phones offer a cheaper alternative to GSM and CDMA services. Though the roaming areas and call quality for Little Smart is not as good as GSM or CDMA phones, the lower costs appeal to many Chinese users on tighter budgets.