The call telecom equipment suppliers had long waited for has come through. China said last week it would issue third generation licences by early next year. This will spark a $44bn spending bonanza as operators in the world’s largest mobile market tool up with new technology.

China has been saying it would introduce 3G since the beginning of the decade but faced huge obstacles. Chief among these was its lopsided telecoms industry, dominated by China Mobile, in which Vodafone has a small stake. Restructuring has since carved up the market into three players. The 3G licences will further redress the balance: licences will be apportioned to give its competitors a technological advantage. Thus China Mobile, which has 450m subscribers, will be stuck with China’s homegrown TD-SCDMA technology. Its smaller peers will, meanwhile, adopt proved international standards, like WCDMA.