China Telecom Corporation Limited has invested 1 billion yuan (US$121 million)  to build another core network in the country, making a bid for a Third Generation (3G) license. The new network will begin commercial operation in 21 southern provinces as well as 10 northern provinces where China Netcom's headquarters are located upon its successful completion and trial operation.

Based on abundant new technologies, the network will cover 199 cities throughout the country. Insiders estimate that investment in further expansion and construction of sub-networks would at least double the initial investment. However, there is no specific schedule for those provincial branches to construct local networks.

Upon its completion, the new network will not only prepare China Telecom for 3G operation, but also improve its business in the north by a large margin. Due to a lack of available networks in the 10 northern provinces serviced by China Netcom, China Telecom has found it difficult to take of piece of that regional pie. Lured by great opportunities of 3G technologies and the Beijing Olympic Games, domestic communications operators will try their best to seize the future 3G and Internet markets early.

(Chinanews April 21, 2005)