China Netcom has posted an unexpected increase in full-year profit after signing up more broadband subscribers than expected. Net income for the twelve months ended 31 December 2007 rose to RMB10.58 billion (USD1.5 billion), from RMB10.55 billion a year earlier. Sales rose to RMB84 billion from a restated RMB84.1 billion in 2006. During the year Netcom’s broadband subscriber base rose 37% to 19.77 million, while its local access customers fell by 2.8% to 110.82 million, of which 84.6 million were fixed line (down 2.3% year-on-year) and 26.2 million PHS (down 4.1%). Broadband ARPU climbed 3.9% to RMB67.4 while the corresponding figure for local access slipped by 9.6% to RMB36.6.