The Ministry of Information Industry's (MII) latest statistics on PHS phone production shows that production of Little Smart PHS phones has slowed.

In February 2006, the output of the Little Smart phones in China was 1.34 million, a decline of 31.9% compared with the same period last year.

The statistics also show that in February, total Little Smart phone users reached 87.63 million, an increase of 2.3 million over the previous month.

Some local media report that China Telecom and China Netcom will invest about CNY5 billion to optimize the Little Smart network, which might bolster consumers' confidence in the network.