Guangdong Telecom recently disclosed that it plans to phase out its ADSL network over the next three years in favor of fiber optics, and will eventually offer 20-100 Mbps optical broadband. Guangdong Telecom plans to transition existing ADSL users to equivalent speed fiber optic connections over the next three years at no additional charge. Once upgraded, users can also receive China Telecom's (NYSE: CHA; 0728.HK) iTV IPTV service, normally valued at RMB 40 per month, at no extra cost.

Users can also upgrade to fiber optics by subscribing to Guangdong Telecom's 3G handset, fixed-line service, and optical broadband bundle. When subscribing to China Telecom's E-Surfing 3G service, users can add a fiber optic broadband subscription for an additional fee. For example, customers who select a RMB 189 monthly 3G service fee can receive 12 Mbps downlink (512 Kbps uplink) broadband service for an additional RMB 30 per month, or a 20 Mbps downlink (1 Mbps uplink) connection for an additional RMB 50 per month. Users who select the RMB 589 per month 3G package receive a 100 Mbps connection at no additional cost.

ADSL users who do not upgrade can continue to use their existing service at the same price until their contract expires, at which point they must upgrade to a fiber optic connection.