The State Council, or Cabinet, agreed at an executive meeting on Wednesday to start issuing licenses to mobile phone operators for third-generation (3G) high-speed networks.

3G networks handle faster data downloads, allowing cell phone users to make video calls and watch TV programs.

The 3G networks will use three technological standards, including the domestically developed TD-SCDMA (Time Division Synchronous Code Division Multiple Access), Europe's WCDMA and North America's CDMA 2000.

The TD-SCDMA standard is a landmark of Chinese innovation and the country will continue supporting its development, industrialization and implementation, according to the meeting.

China will invest 280 billion yuan (US$41 billion) in 3G networks over the next two years, Li Yizhong, head of the Ministry of Industry and Information Technology, said in Beijing on December 19.

"Issuing licenses to mobile operators to develop 3G networks plays an important role in boosting domestic demand and optimizing the telecommunications market competition pattern," said the meeting, presided over by Premier Wen Jiabao.

The top three telecom giants are expected to receive 3G licenses at the beginning of 2009. China Mobile will use TD-SCDMA, while China Unicom and China Telecom will use WCDMA and CDMA 2000, respectively.

(Xinhua News Agency January 1, 2009)