Investment in the telecom sector slowed in China in October, after rapid growth in the first nine months, according to newly released statistics from the Ministry of Information Industry (MII).

Chinese telecom operators invested 159 billion yuan (20 billion U.S. dollars) in the telecom sector in October, up 13.9 percent over the same month of last year.

Fixed assets investment reached 16.15 billion yuan, sharply down from September's 23.61 billion yuan and less than the 17.2 billion yuan investment in October last year.

According to MII statistics, fixed assets investment in the telecom sector rose 17.7 percent year-on-year to 142.48 billion yuan in the first nine months of the year, as against a 12.3 percent drop for the same period last year.

This year is the first in recent years in which telecom investments has grown.

Industrial observers said the government's rural projects, and incentives given to telecom operators to expand the rural market, spurred heavy investment in the first nine months.

The MII said earlier that 98.8 percent of Chinese villages are now equipped with telephones.

MII statistics show that the Chinese telecom sector earned 536.09 billion yuan in the first ten months, up 11.4 percent over the same period of last year.

There are now 450 million mobile phone users in China and 50 million people with access to broadband Internet.

Editor: Donald