Ms. Zhao further assumes the company's service revenue will grow 7.3 percent this year.

Poor network performance increases customer dissatisfaction and leads to a decline in service revenues.

During the period, Leap had reported an operating profit of $102.2 million and $3.09 billion in service revenue.

Cable companies currently pay a local government 2 percent of basic service revenue paid by subscribers in that municipality.

But the company hopes to more than make that up through new service revenue and other sales driven by the increase in users.

It has an active community and relies on service revenue rather than membership to sustain its operations.

In the year prior to the acquisition Ensynch's service revenue was $16.2 million.

By last year, service revenue had leaped to $742 million, or 41 percent of the total.

"Its service revenues have been increasing at a nice pace."

Hewlett-Packard's 1996 service revenues were $5.3 billion, 20 percent above 1995.