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Short message services by "Little Smart'' wireless phone provider become interoperable between two Goliath phone networks operated by China Telecom and China Netcom yesterday.

Officials with China Telecom said the interoperability of the short message service is likely to be an impetus to further boost the development of "Little Smart''.

"It is a step forward for further popularization of Little Smart or "Xiaolingtong'' said Si Furong, managing director of China Telecom Corp Ltd, a listing arm of China Telecom Corp.

"Little Smart,'' is built onto the existing fixed-line network and lures users with low per minute rates, one-way charges and cheap monthly fees.

Xiaolingtong is designed to counter China Mobile and China Unicom, since both China Telecom and China Unicom have no mobile licences.

Both companies have spent hundreds of millions of dollars this year on Xiaolingtong.

Figures from China Telecom indicate that there were more than 15 million Xiaolingtong users by the end of last month.

The figure for China Netcom stood at 10 million.

On Tuesday, China Netcom announced that short message service of Xiaolingtong in the 10 provinces in northern China had become interoperable.

"All Xiaolingtong subscribers of China Telecom can also enjoy the same kind of service,'' said Si from China Telecom Corp Ltd.

"We are currently in contact with China Mobile and China Unicom to enable the service to connect with mobile phone subscribers next year,'' he said.

Si believes there is still market potential for the development of Xiaolingtong as it meet the demand of lower-end customers.

However, that Xiaolingtong is a transitional product as it is a complement to the company's fixed line telephone.

Both China Telecom and China Unicom are to secure mobile licences while the Chinese Government starts to issue a third generation of mobile communications licences. That is expected to take place late next year or early 2005.

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