Subsidies offered for smartphone makers

China Telecom Corp Ltd, the third-biggest mobile network operator in China, said on Thursday that it will offer 16 billion yuan ($2.56 billion) in subsidies to smartphone producers, part of an attempt to add 120 million new subscribers this year.

President and Chief Operating Officer Yang Jie told a conference in Beijing that 12.4 billion yuan will go to devices that are tailor-made for the company's networks. Up to 600 million yuan will be offered as incentives to encourage manufacturers to produce devices priced less than 700 yuan.

Yang said China Telecom aims to add 100 million fourth-generation network users this year and sell 100 million smartphones.