China Unicom (Hong Kong) Ltd. (CHU) has raised its handset subsidies for Apple Inc.'s (AAPL) iPhones in a bid to boost demand for its third-generation mobile services, but reiterated the move won't hurt its revenue this year.

Executive Director Lu Yimin said Wednesday the company plans handset subsidies of CNY3 billion-CNY5 billion to boost its 3G user base this year.

Lu said the company, China's second-largest mobile operator by subscribers after China Mobile Ltd., is on track to add 10 million 3G subscribers this year.

He also reiterated the company's target of maintaining its average revenue per 3G user at more than CNY100.

To ramp up its 3G mobile business, China Unicom said earlier this month it was revamping its 3G tariff plans by including cheaper plans for 3G services and cutting upfront payments for all iPhone models by about CNY1,000.

-By Lorraine Luk, Dow Jones Newswires; 852-2802-7002; lorraine.luk@dowjones.com
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