Announced by the Chinese government over the weekend, the country's phone companies will merge from six to three groups in a bid to compete with China Mobile, the company that dominates the industry. While no time frame was given for the completion of the overhaul it is understood 3G licenses will be awarded on the completion of the deals.
3G services are currently being testing in major cities in China such as Beijing and Shanghai. The services will enable Chinese mobile users to access high-speed Internet access, mobile video, and online games.
According to reports from China Daily China Mobile will be granted a 3G license based on the country's home-made technology TD-SCDMA, while China Telecom and China Netcom will get theirs based on the WCDMA and CDMA2000 standard respectively.
While foreign companies are barred from engaging as telecommunication carriers in China, 3G services are expected to present an enormous boost for companies selling 3G hardware equipment, such as phones and infrastructure, and also software applications that run on the high-speed platform.