MIIT has made a formal announcement on 3G license
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We believe 3G is a catalyst for more competition – China
Telecom and China Unicom will try to use 3G to lure highend
customers away from China Mobile, while China Mobile
may be forced to cut tariffs or offer more handset subsidy to
defend its market share
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 We remain cautious on the sector and expect pressure on
telecom operators’ share prices after 3G announcement