It is said that details of the cooperation between Beijing Xiaomi Technology Co., Ltd. and China Unicom (Hong Kong) Ltd. (NYSE: CHU, SEHK: 0762, and SHSE: 600050) will be made public on December 20.

The details will include how much call charge-subsidy China Unicom will provide to Xiaomi Technology, the specific volume of customized mobile phones, related service package, etc.

It seems that CNY 1,999 is the lowest price among all the dual-core 1.5GHz mobile phones having been launched by Xiaomi Technology, according to a prevailing view from insiders. And this is considered to be China Unicom's new business expansion in medium- and low-end market, after the company announced the selling of iPhone4S before the Spring Festival.

There is competition between IM software MiTalk and Wo You (transliteration). Inserted in Xiaomi Technology's mobile phones, MiTalk is also developed by the company, which is led by the CEO Lei Jun. Wo You is developed by China Unicom, a person familiar with the matter says. On one hand, the free-charge MiTalk will cause a fatal impact to operators such as China Unicom in terms of point-to-point revenue from short message and multimedia message service, on the other, when VoIP (voice over Internet protocol) is launched, Xiaomi Technology will also erode voice service revenue from operators, according to the person.