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.
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.

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The emblem for the 2008 Beijing Olympics, known as "Chinese Seal, Dancing Beijing", has been put on public display for the first time in Beijing's Capital Museum.
The original seal of the emblem has been presented to the International Olympic Committee and is permanently showcased at the IOC headquarters in Lausanne.
The one on show in Beijing is the replica of the seal, which was made of the finest jade from northwest China's Xinjiang.
In addition to the emblem, some 5,000 Olympic collectors' items are on show, including Olympic awards, commemorative coins, badges and stamps.
The exhibition runs until September 5th, and a special envelope and postcard will be unveiled on July 13th to commemorate Beijing's successful bid to host the 2008 Olympics.
The Chinese capital won the Olympic bid in Moscow on July 13th, 2001.

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A landscape painting by Chinese master Lu Yanshao has sold at an auction for almost 70 million yuan, or more than 8.3 million US dollars.
The auction sets a new record for Chinese calligraphy and paintings, beating the price of 30 million yuan, or 3.6 million US dollars fetched by Mi Fu's Yanshan Ming two years ago.