"It might not be feasible (for operators) to build national 3G networks immediately," he said. Some analysts expect regulators to allow operators to first build networks in select cities such as Beijing and Shanghai.

Wang would not specify how many 3G licences would be handed out. There are four major telecoms operators in the country and analysts believe four licences could result in excessive competition while fewer than three could curb competition.

"Government bodies are studying how many licences, three or four, are needed (to be awarded)," said Wang.

An industry restructuring has been looming in China's telecom sector, which might see the government consolidate the top four operators into three while awarding 3G licences.

It has been speculated that China Unicom, which runs cellular networks based on two different standards, may sell one network to China Telecom and merge the other with China Netcom.

But Wang said he "never heard such a plan and we never studied such a plan."

The minister added that the restructuring is "up to the board of directors of the four operators, which are all public companies."

The State-owned Assets Supervision and Administration Commission (SASAC) has said it is working on reforming the domestic industry but denied reports that it would split China Unicom.

"There has been much discussion on how to better realign the telecom industry," a senior executive with China Unicom told China Daily last week.

"We believe the government would make a judgment at the right time to protect the interests of the country, the industry and consumers."

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