Question-and-Answer Session
Unidentified Company Representative
Okay, now, we are open for Q&A. Also, to enable more people to have a chance to ask more questions now, again, I would like ask everyone to limit your question to number of two questions.
Unidentified Analyst
[Foreign Language]
(Inaudible) have two questions. The first one is about 3G coverage. How is the coverage of 3G services right now? Given that with this release that we only spent about one-third of the CapEx in the first half and also comments about that although the [priority] of cost of 3G WCDMA, we have savings, so is that means that we'll have savings for the CapEx this year? Also, given that if the subscribers increase very quickly whether our network can efficiently support our services?
The second question is about iPhone. What about the pricing and how we are going to sell? Whether it's going through the direct channels or indirect channels, whether there is volume commitment to Apple and whether the agreement is exclusive?
Unidentified Company Representative
[Foreign Language]
About iPhone, we already singed a agreement with Apple and we will launch iPhone handset in the first quarter. Given that we have some [conflict] IT agreement with Apple and also with the details sales and marketing strategy, the company is also still under detailed study internally. So until we finalize on those detailed study internally. So, until we finalize on those detailed plan, we'll further disclose at that time.
On the first question about the 3G coverage, in the year earlier we had planned 284 cities coverage, and so far the is all the equipment, the quality and the pricing is very good.The price than the 2G equipments. Given that also in the market, the 3G, we're not sure the terminal, the penetration, how quickly that will at penetrate the market. How quickly that we will penetrate the market, but however the sign in the market, they show that a majority of the handset in the market being sold also supporting the 3G and the WCDMA, a lot of them already supporting WCDMA services.
So in sign of that in the second half we will increase the deployment of 284 cities to 335 cities and we will basically cover all of the provincial-level cities and also those very advanced developed county-level cities. So, with that we will cover around 50% of the population by the year end.
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