"China added 40.8 million phone users during the January-May period, bringing the nationwide total to more than 1.1 billion in a country with a 1.3 billion population," the Chinese Ministry of Industry and Information Technology (MIIT) said.
"During the period, fixed-line telephone users dropped about 7.8 million to 306 million while mobile phone users jumped 48.5 million to 796 million, Xinhua news agency reported.
The number of Chinese broad-band Internet users however jumped nearly 9.8 million to 113 million by the end of May.
The telecommunications industry recorded about 1.23 trillion yuan ($181 billion) of business in the five-month period which was, up by 21.6 per cent year on year, it said.