China's telecommunications operators should increase investment abroad, including joint ventures, ahead of the country's start of high-speed mobile phone service, said a Ministry of Information Industry official.

"We're encouraging telecom companies to invest globally,'' said deputy telecommunications director Lu Yang.

China is preparing to set guidelines for its high-speed mobile networks. It will hand out licenses for third-generation service in the coming 12 months.

Lu said companies should consider investing in 3G technology with foreign-based operators. He also called for more private investment in the domestic telecommunications market by both Chinese and overseas investors.

"We encourage competition and will ensure fair competition in the sector,'' he said.

Siemens said last month it had opened a laboratory in Hangzhou, capital of eastern China's Zhejiang Province, for research into software for high-speed mobile networks. The laboratory aims to "work closely with Chinese mobile operators'' and the local university to develop data applications for future 3G networks like WCDMA and TD-SCDMA. TD-SCDMA is China's homegrown high-speed mobile format.

(Shenzhen Daily July 11, 2005)