BEIJING, Dec. 21 -- The time is ripe for China to decide how it will issue third-generation (3G) mobile licenses, a top regulator was quoted as saying Monday, in a move that could spark billions of U.S. dollars in spending.

    Industry watchers and China's four major phone companies have watched anxiously over the last two years for signs of when the nation's regulator, the Ministry of Information Industry (MII), will issue 3G licenses.

    Some had expected the licenses to come out as early as last year, while many believed they would be issued this year, only to see their hopes pushed back amid talk of a major industry restructuring in the offing.

    Expectation now centers on the first half of next year, with many saying that work on new networks must begin work soon to be ready in time for the 2008 Beijing Olympics. But government officials and regulators have made little or no comment on timing.

    "The opportune moment has come for a strategic decision on the awarding of 3G mobile licenses," MII vice minister Xi Guohua was quoted as saying by Xinhua.

    "The technologies and business issues involved in awarding licenses have reached maturity and the structure of competition is favorable."

    Industry watchers expect the MII to award 3G licenses to some or all of China's four major telephone companies, consisting of mobile carriers China Mobile (Hong Kong) Ltd. (HK: 0941) and China Unicom Ltd. (SHA: 600050) and fixed-line carriers China Telecom Corp. (HK: 0728) and China Netcom Group Corp. (HK: 0906).

    The move is expected to spark a round of US$10 billion to US$12 billion in spending on telecom equipment, with beneficiaries likely to include global giants Ericsson, Nokia, Siemens and Motorola.

    (Source: Shenzhen Daily/Agencies)