China may issue its first licenses for high-speed mobile services next year, to boost competition for current operators China Mobile and China Unicom before the 2008 Beijing Olympics.

The country may add licenses using so-called third-generation, or 3G systems to squeeze more calls on existing channels and avoid reallocating government or military airwaves, CRIENGLISH.com reported Monday.

The operators will spend about 60 billion yuan, or over 7 billion US dollars to set up networks in China by 2008.

They will also pay about 1 billion yuan between them next year to begin trial operations.

Earlier adopters of 3G such as Japan, South Korea and Hong Kong used the technology to offer more services, such as faster e-mail, video, games and music.

Source: Xinhua