CHINA PRESS: China 3G Licenses Release Delayed

BEIJING -(Dow Jones)- The restructuring plan of China's telecom industry won't be released before the end of the summer, delaying the sale of third-generation mobile services licenses, the weekly China Business Post reported.

The weekly didn't give a date for the launch of 3G licenses.

China is expected to issue 3G licenses between the end of 2005 and the beginning of 2006 but no timetable has yet been set.

The plan for a restructuring of China's telecommunication industry has been finalized but not submitted to the State Council, the report said, citing unnamed senior officials in the telecom industry.

Beijing intends to streamline the telecom industry before launching the much-awaited third-generation license.

Unlike in Europe, where 3G licenses are sold for cripplingly large fees in an auction to the highest-paying bidder, China is likely to split responsibility for the competing 3G standards among the carriers and keep the prices relatively low.

China will release no less than four third generation licenses with a price tag of between 100 million and 200 million yuan, the report said.

Web site: http//www.chinabusinesspost.net

-By China Bureau, Dow Jones Newswires; 8610 6588-5848; djnews.beijing@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 3rd July 2005