The government has issued new licenses to manufacture mobile phones, and new approvals are also in the pipeline. But as newly approved manufacturers ramp up production, the China Economic Times looks ahead at the battle for market share, the risks of overproduction and the dominance of foreign manufacturers.

China Unicom Ltd., the smaller of the country's two wireless carriers, posted a 24 percent dive in 2006 earnings after it lost market share and swallowed a one-time hit on its books, Reuters reported.

The government is considering a strategic restructuring of the telecommunications industry to better balance resource distribution among the main players ahead of 3G licensing.