One of the previously unanswered question about the entry of Windows Phone 8 into China was what level of subsidy the domestic operators would be willing to provide. Now we may have our first indication as winp.cn are reporting that the Nokia Lumia 920T is set to be available for 1 RMB (£0.10) on a 388 RMB (£38) per month 24-month contract on China Mobile. 

It's a noteworthy piece of news as the sales of smartphones in China, especially at the high end, are increasingly being dictated by the presence (or absence) of a subsidy. As in other markets subsidised handset generally sell in much greater numbers than unsubsidised handsets. In part that is driven by the reduced price (perceived or otherwise), but also because operators tend to push these handsets more both in marketing and retail channels.

The subsidy being offered on the Nokia Lumia 920T is particularly attractive, and will significantly increase sales of Nokia's flagship Lumia. It also contrasts with a number of other high end smartphones, including HTC's Windows Phone devices and Apple's iPhone, which are not currently widely available on a subsidy on China Mobile.

winp.cn says that a number of other pricing options will also be available on China Mobile:

• 800 RMB (£80) up fron, plus 288 RMB (£28.50) monthly contract
• 1200 RMB (£120) up front, plus 228 RMB (£22.50) monthly contract
• 2000 RMB (£200) up front, plus 188 RMB (£18.50) monthly contract

China Mobile is China's biggest operator, by some distance, with more than 700 million customers. That's why Nokia partnership with the operator in seen as so important, especially when you consider that China is also the largest single country market for Windows Phone. It's a stretch to say that the partnership will make of break the device as a whole, but it's quite clearly critical to Nokia's Windows Phone ambitions in China, and must surely rank as one of the most important operator relationships on a global level.