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China could "very soon" award domestic telecom operators licences to build 3G (third generation) mobile phone networks, the country's top telecom official said yesterday.

"I cannot provide a specific timetable, but it could happen very soon," Wang Xudong, minister of information industry, told reporters at the ITU Telecom World 2006 being held in Hong Kong.

Wang reiterated a commitment to enable operators to offer 3G services during the 2008 Olympic Games in Beijing, saying it is "well-founded and feasible."

3G services enable video calls, faster data downloading speed and mobile Internet access.
Wang said operators would be given enough time to deploy 3G networks. "The build-out of networks and the following trial operations could take some time."

Industry observers estimate that setting up networks and trial operations could take at least one year before operators can formally roll out services to consumers.

As a result, some believe licences could be handed out in the first quarter next year; and China Netcom (Hong Kong) CEO Zuo Xunsheng said at the expo that it could be as early as February.

The acceleration of the 3G licensing process could be a shot in the arm for major telecoms companies, especially equipment and handset makers, which have invested heavily in 3G-related research and development.

The building of the 3G networks could unleash purchase orders worth tens of billions of dollars but Wang suggested the windfall might be smaller than many expect.

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