China telecoms eye 2007 domestic listings: Media

Beijing, Jan 7: China Mobile, China Telecom and China Netcomplan to list shares domestically this year, seeking capital to buildthe next generation of mobile phone services, media reported.

China is expected to issue 3G, or third-generation, mobile networklicences in the first quarter of 2007, a move that equipment makerssuch as Ericsson and Qualcomm hope willtrigger a billion spending spree.

China Telecom, the mainland's largest fixed-line operator, had notannounced listing plans but insiders said it was talking withinvestment banks to raise .13 billion in the second quarter, Xinhuanews agency said late on Saturday.

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

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

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

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

China Netcom planned to restructure by selling some businessesback 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 twomobile firms, is currently the only major operator that is listed onboth overseas and mainland stock markets.

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

Reuters>