Question-and-Answer Session
We have three quick questions. First, going into 2009-10, you help us to understand what is a sustainable EBITDA margin for your mobile business? And then, second question is, among your existing GSM subscriber base, can you give us an idea roughly what is the percentage that are corporate customers? And finally, on the CapEx planning is?. of the revised CapEx spending, can you give us a rough idea how much is spent in urban versus how much is spent in rural? And given that the EGM for the merger will be in September, middle of September, so should we expect that or that increased CapEx spending will happen in the fourth quarter of this year? Thank you.
Tong Jilu - Executive Director and Chief Financial Officer
[Foreign Language]. [inaudible] The EBITDA margin for the first half of this year is slightly lower than the same period of last year. And that was due to the overall economic environment and also some operational reasons. Therefore, the EBITDA margin in the first half of the year was slightly lower than the same period of last year. Well, from the policy point of view, we know that we have changes from the roaming tariff which given a loss of RMB6 billion this year, in the first half of this year, the calling-party revenue increased by 4.2% year-on-year. However, the called-party revenue decreased by 20% year-on-year. And our goal is that we would try to make... maintain the EBITDA margin stable at 43.6% and that is for the 2G GSM network.
Chang Xiaobing - Chairman and Chief Executive Officer
As to the CapEx, the CapEx structure for rural and urban areas, I said that just now, we will increase the CapEx, especially for the coverage and the quality improvement in 50 cities? key cities. We have realized that we have to keep focus on the key cities for the development of 3G; however, we have to ensure that we have a good basis on the 2G network so as to prepare for the 3G.
For the 900 megahertz and 1,800 megahertz, we complained about the shortage of the 900-megahertz spectrum, but on the other hand, we haven't been determined to make the continuous coverage on the key cities on the 1,800 megahertz. And now, we have decided that we will make a continuous coverage on the 1,800-megahertz spectrum, which will not only meet the 2G demands but also preparing... but also lay a good foundation for the future 1,900 megahertz 3G business. I guess you would understand why we do so and some of the investors suggested that we can go faster and in a bigger step about we prefer a gradual way of going.
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