Question-and-Answer Session
Operator
Alright. Ask the first question.
Unidentified Analyst
First question is related to the CapEx and why the level of CapEx in the first half was quite low compared to your budget for the year, is there a reason why... do you think that you're revised down or is it... what is the reason for the slow spending relative to that? My second question is regarding the overall handset subsidies for GSM, looks like the overall sales and marketing went down, if you could discuss on the CDMA side, what the subsidies look like?
Unidentified Company Representative
[Foreign Language]
All right. Regarding the first question, the total CapEx budget for 2007 is RMB21.6 billion and in the first half of 2007, the actual CapEx was RMB9.26 billion, accounting for 75.6% of the budget. And I think here the lower completion rate is due to... mainly due to the time delay of the construction. And I would say that we are going to beat the schedule by year-end.
Of the CapEx, the GSM was RMB4.84 billion in the first half 2007 and with that investment we added around 12 million new capacity in GSM network. And company... our total capacity of GSM is around 120 million and that compares with our subscriber base of about 113 million, so you can see it's close to kind of 100% utilization rate.
Looking into the second half of 2007, the company plan to increase the GSM network CapEx by adding more capacities in regions where the level of capacity is not sufficient to meet market potential, and so that probably is the one reason why we've had to add GSM CapEx. Another reason is that the implementation of calling party pay, which should result in a higher usage and also cause some impact on our network capacity. So that's another reason which we had to add more capacity to our GSM network. And the last effect [ph] is that we plan to upgrade more, just in more cities GPRS. We plan to invest probably around let's say RMB250 million to upgrade GPRS in around probably 100 sort of cities. So that's the first question about the CapEx.
Regarding second question that the CDMA handset subsidy, in 2007, first half 2007, the company continued to put some of the effective development necessary [ph] on business and strictly linked the handset subsidy to CDMA subscriber ARPU contribution. So in first half 2007, the newly added CDMA handset amortization is around RMB220 million. And amortization as a part [ph] of the CDMA handset cost was RMB182 million... sorry, RMB1.82 billion in the first half of 2007, and we add probably around, let's say, 428,000 CDMA subscribers per month, and that translate into around RMB225 per subscriber in terms of handset subsidy.
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