This aggressive rural expansion contributed greatly to China Mobile's 25.5 per cent year-on-year rise in net profit in the first half of 2006, beating China Unicom's 20 per cent.

Analysts do not expect China Unicom to regain its lost ground in the second half of the year.

China Mobile's full-year profit may jump 24.4 per cent to US$8.2 billion, while China Unicom is likely to post 14 per cent growth to US$693 million, according to a median of eight analysts in Hong Kong and Shenzhen surveyed by China Daily.

In comparison, China Telecom and China Netcom, the two fixed-line operators, failed to boost their rural business in the first half of the year.

"Slow progress in rural markets and competition from mobile operators squeezed the duo," said Tang.

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