While Chinese telecom operators are still eager to get their hands on new 3G licenses, they are still increasing investment in the Little Smart PHS network.

At the end of 2005, China had more than 85 million Little Smart users. It is predicted that the number will reach 100 million by the end of this year.

Hao Xiufang, a deputy chief engineer from Beijing Netcom, says that Beijing Netcom will continue to invest millions of renminbi this year to improve the coverage of Little Smart signal in the urban area of Beijing, making the signal available at hotels and business buildings.

In addition, Beijing Netcom plans to launch more value-added services such as "Little Smart secretary", ring tones, weather forecasts and short message magazines.

China Telecom and China Netcom also say that they will invest about CNY5 billion in 2006 to optimize the Little Smart network.

Analysts quoted in local media say that the reason that the telecom operators do not give up Little Smart service is that they hope to rely on it to maintain a consistent development in the early period of 3G development.