When China launched the restructuring of its telecommunications sector in May this year, it was one of the biggest events in the global industry for years. In a market with 600m mobile users and an internet population of 250m, the government ordered a series of mergers, which it pledged would create "healthy competition" and lead to the start of thirdgeneration services.

"Both from absolute numbers and the growth rate, China is the biggest telecom market in the world now," says Jonathan Dharmapalan, partner at Ernst & Young and head of the firm's telecoms practice in Beijing. "So most future innovations in the industry are going to be played out here, and most of the groundbreaking thinking is going to happen here." Six months on, the industry has indeed seen big changes. China Mobile, the market leader, has absorbed the small player China Tietong.