China is all set to issue 3G licenses. The move has been seen as a proactive measure by the Chinese Government to make the Beijing Olympics a success story in every possible way

Top telecom officials of China informed industry executives that Beijing isn't planning to restructure its telecom industry, but added that China may issue 3G mobile licenses shortly.

Many market analysts have anticipated remodeling of China telecom sector to prepare the ground before mainland biggies bid for 3G licenses. China Mobile Ltd has multiplied in size and reach, taking away the customers of smaller player China Unicom and gaining from the rising trend 'mobile cannibalization'. Market watchers contemplated that such a remodeling would witness the coalition of two of the five state-owned phone companies.

The Head of the Ministry of Information Industry (MII), Wang Xudong, stated that the Chinese telecom industry would expend one trillion Yuan over the period 2006-2011, marking the government may issue much-awaited 3G mobile licenses very soon.

Commenting on the implementation of 3G services, Wang said "China will do it according to the development of the domestic telecom industry and the maturity of the three international standards recognized by the ITU". He was referring to China's homegrown W-CDMA (popular in Europe), TD-SCDMA, and CDMA 2000 that dominates in US and Japan.

According to a Research Analyst at RNCOS, who has recently researched a report on "China Telecom Sector Analysis (2006-2007)", 3G constructions were started in 2006 by the government to make 3G services available by 2008 Beijing Olympics. Actually, 3G services are gainful for manufacturers, carriers and users and also, the cost spent on 3G is just 50% of that of 2G.

Related Market Research Reports:
China Telecom Analysis (2008-2012)
European Mobile Market Scenario to 2012
Indian Telecom Analysis (2008-2012)