Mobile operators China Mobile and China Unicom said they've made recent heavy investments to upgrade their networks in advance of the coming third-generation telecommunications era.
The first licenses for 3G technology - which speeds up data, photo and voice transmissions over mobile systems - are expected to be granted by the middle of next year.
Among the investments, Sweden-based Ericsson Inc announced yesterday that it has received a US$90 million contract from China Unicom to help upgrade code division multiple access, or CDMA, networks in Jiangsu, Yunnan, Heilongjiang and Liaoning provinces.
Nanjing ericsson Panda Communications Company Ltd, the largest Ericsson joint venture in China, is delivering the equipment.
"That expansion is not directly related to the future 3G network but it did increase China Unicom's network capacity," said Tina Tan, spokesperson for Ericsson China.
Germany-based Siemens AG announced recently that it signed deals worth US$100 million with China Mobile and China Unicom to provide telecom equipment and services for network upgrades.
Industry insiders said fixed-line phone operators, such as China Telecom and China Netcom, will be allowed to enter the mobile phone business before the 3G licenses are issued. Their expected entry prompted the two present domestic mobile operators to strengthen their technologies and service to attract more subscribers.