China Telecom Corp., the nation's largest fixed-line telephone company by subscribers, is considering selling a stake to foreign investors ahead of its 3G roll out.

Potential suitors include Japan's NTT DoCoMo Inc.The operator is seeking a partner who can not only provide synergies, but also help China Telecom to develop 3G technology.

Beijing is expected to issue 3G licenses this year, in time to allow the technology to be refined ahead of the 2008 Beijing Olympics. 3G networks enable simultaneous transfer of voice and non-voice data, making high-speed data services such as video telephony possible on handheld devices.

China Telecom is considering issuing new shares. Another plan is for the parent group to issue non-tradable shares to a strategic partner.

Talks are believed to be in the preliminary stages. No estimates were cited as to the potential size of the deal.

China Telecom is expected to be one of three recipients of 3G licenses, along with China Mobile and China Netcom.

Source:佚名