November 2 -- The negotiations between China Mobile (0941.HK) and Apple Inc. regarding the introduction of iPhones were terminated, and Apple will not be producing phones that run on the former's TD-SCDMA network, reports yicai.com, citing an unnamed source.

China Mobile will instead ramp up plans to extend its Wi-Fi coverage in order to lure iPhone users.

According to the source, Apple will incur additional research and production costs to produce iPhones that are compatible with the TD-SCDMA standard, which does not work outside China.

However, China Mobile’s TD-LTE is one of the international standards for 4G, and company chairman Wang Jianzhou said the company will then introduce the iPhone.

The source added that China Mobile will add 100 million Wi-Fi hot spots over the next three years.