China Netcom Group Corp. (Hong Kong) Ltd., the No. 2 fixed-line phone firm in the Mainland, posted a 7.7 percent fall in first-half earnings on Wednesday as more users switched to mobile phones, Reuters reported.

KongZhong Corporation, a leading provider of wireless value-added services and the operator of a leading wireless Internet portal in China, today announced its unaudited Q2 revenues had a 64 percent year-on-year jump to 30.07 million US dollars. 

Eyeing the huge potential of the Chinese telecommunications sector, foreign companies have structured well-rounded marketing strategies to get a slice of the market when the right time comes, Sohu News reported.

China is most likely to issue 3G mobile telecommunication licenses in the second half of this year and China's 3G subscriber base will reach 270 million by 2011, said Analysys International in a statement.

The upcoming Third Generation Mobile Communication (3G) will attract great investment on China’s telecom sectors, reports People’s Daily. The manufacturers of equipment-building, optical fiber and optical cable, terminal building, system integration and other related sectors will all benefit from 3G.

Sources say that China Netcom and government authorities are unlikely to object the new bid for PCCW offered by local financier, Francis Leung Pak-to, on the ground that the ownership would not fall into foreign hands, reports The Standard.

A professional with the Institute of Communication Policy Research of the Ministry of Information Industry has written an analysis estimating that the proposed regrouping of 3G service providers would end up costing at least 20 billion yuan, and the result would be even more disorganized than the sector currently is.

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