China Unicom Parent: To Offer IPhone 4S Free At CNY286 Monthly Plan

The state-owned parent of China Unicom (Hong Kong) Ltd. (CHU) will offer users Apple Inc.'s (AAPL) iPhone 4S smartphone for free when bundled with a three-year mobile service package priced as low as CNY286 ($45) a month, the company said.

The move comes as China Unicom, the only mobile carrier to offer the iPhone in China, promotes the device to help drive subscriber growth for its third-generation mobile services.

With the CNY286 package, users will be able to get a version of the phone with 16 gigabytes of storage by making an up-front payment of CNY5,880 toward mobile service charges, or an up-front payment of CNY6,999 for a 32-gigabyte version of the phone, China United Network Communications Group Co., also known as Unicom Group, said in a statement on its website Thursday.

Users will also be able to get a free 64-gigabyte iPhone 4S if they sign up for three years of service at CNY386 a month, or a free 8-gigabyte version of the iPhone 4 handset with three years of service at CNY186 a month.

The company will also offer versions of the phones for free with one-year and two-year service plans at higher monthly prices.

The offers take effect Jan. 13, the day Apple plans to launch the iPhone 4S in China and 21 additional countries.

-By Owen Fletcher, Dow Jones Newswires; 8610 8400 7702; [e-mail]