Local media report rumors that the two major fixed telecom service providers in China, China Telecom (CHA) and China Netcom (CN), may choose to cooperate on developing 3G services.

A representative from China Telecom Beijing Research Institute, a policy making body of China Telecom, has disclosed that China Telecom and China Netcom are discussing how to make the 3G network work smoothly throughout the country and they might set up a third-party company to coordinate the management and operation of 3G networks.

Since May 2002 when a North-South Division Plan was established, China Telecom and China Netcom have been running independently and each has to rent the other's network to realize national connections. This new strategy is expected to help the parties dissolve the conflicts caused by the anti-monopoly barriers.

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