China Mobile announced on October 5 it has signed a non-binding agreement with China Resources Peoples Telephone to acquire a majority stake of 66.5% in the Hong Kong operator for about US$3.4 billion. Peoples does not have a 3G license in Hong Kong, making its ARPU (Average Revenue Per User) somewhat lower than other Hong Kong operators. However, if the acquisition would go through, China Mobile would be able to significantly increase its roaming revenues between the Chinese mainland and Hong Kong. Furthermore, the deal would be China Mobile's first acquisition outside the Chinese Mainland.