Will 3G phase out fixed-line operators in China?

Fixed-line operators are seeking to enter the faster-growing mobile market by gaining licenses from the government for third- generation wireless services.China Netcom says that the licenses are likely to be awarded by October, according to company's Chief Executive Officer Zuo Xunsheng. The high-speed wireless licenses may be issued before thegovernment finishes building test networks based on a domestic 3G technology, known as time division-synchronous code division multiple access.

Apart from plans to start 3G services, which allow faster downloads of music and video on mobile phones, China Telecom and China Netcom are looking to sign up more broadband subscribers tooffset declining fixed-line growth. The first time China Telecom provides monthly additions for broadband users showed an increase of 760,000 broadband users in January, bringing its total to 29.1 million.

What does the phenomenal subscription increase in China's wireless market spell for fixed-operators? Is this temporary or will it eventually mean a purely wireless nation?