China telecoms eye 2007 domestic listings - media

BEIJING, Jan 7 (Reuters) China Mobile, China Telecom and China Netcom plan to list shares domestically this year, seeking capital to build the next generation of mobile phone services, media reported.

China is expected to issue 3G, or third-generation, mobile network licences in the first quarter of 2007, a move that equipment makers such as Ericsson and Qualcomm hope will trigger a billion spending spree.

China Telecom, the mainland's largest fixed-line operator, had not announced listing plans but insiders said it was talking with investment banks to raise .13 billion in the second quarter, Xinhua news agency said late on Saturday.

China Mobile, the world's largest cellular carrier, was likely to be first to list A shares, with China Telecom and China Netcom following close behind, Xinhua quoted analysts as saying.

Listings by some of China's biggest firms, along with structural and regulatory reform, have revived investor interest in Chinese stock markets after a four-year slump.

The country's bellwether index, the Shanghai Composite Index <.ssec>, soared 130 percent in 2006, making it the world's best-performing major market.

China Mobile, the world's largest cellular carrier, is likely to be first to list domestic shares, known in China as A shares, analysts say. China Telecom and China Netcom are expected to follow close behind.

China Netcom planned to restructure by selling some businesses back to its parent, the South China Morning Post reported on Saturday, a move that could set the stage for a domestic listing.

China Mobile has announced plans to raise funds on the mainland market, but has not given a timetable.

China Unicom Ltd. , the smaller of China's two mobile firms, is currently the only major operator that is listed on both overseas and mainland stock markets.

Third-generation mobile phone service will provide multimedia services including voice, data, video and wireless Internet access.

REUTERS PKS ND1332