China Telecom announced on August 27 that the company will not increase capital spending for 3G services in the future and will not increase the investment in 3G base stations, the Sina Tech News reported on August 27. China Telecom stated that in the second half of 2010, the capital spending will mainly focus on broadband development. Meanwhile, China Telecom also announced that the company's mobile phone subsidies will remain unchanged. In the first half of 2010, China Telecom's subsidies on mobile phones totaled 6.098 billion RMB (US$896.8 million; US$1 = 6.8 RMB), up 26% compared to the first half of 2009, with ARPU (Average Revenue Per User) for its 3G mobile services reaching 110 RMB (US$16.2), according to the same source.