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Third-generation cell-phone technology is the big draw at China's most important telecommunication exhibition of the year, which opened yesterday in Beijing.

More than 60 percent of the 400-plus exhibitors from both home and abroad are displaying their latest third-generation, or 3G, handsets and network equipment at PT/Wireless & Network Communication China 2003.

Posters reading "3Ging" greet visitors everywhere at the China International Exhibition Center, where the show will run through Sunday.

Overseas and domestic companies said the arrival of the 3G era in China is imminent and they have strong confidence that China's future 3G market will be worth billions of US dollars.

"Foreign giants will focus on China's 3G market because we have 244 million handset users, the largest market in the world," said Xi Guohua, deputy minister of Information Industry.

Third-generation mobile technology will allow users to exchange voice and video data more quickly than possible with current mobile phones, allowing users to watch short movies or hold a video conference on their handsets, among other uses.

The number of mobile-phone users in China is expected to reach 500 million by 2007, which will create a 520 billion yuan (US$62.65 billion) telecommunication-related market, according to industry sources.

By that time, about 30 percent of cell-phone users in the country will own 3G handsets.

"We must prepare for the next telecommunication wave in China," said Colin Giles, China general manager of Nokia Oyj.

The world's largest mobile phone maker is displaying several 3G handsets and network base stations at the event. One of the handsets supports both 3G and current technology, allowing consumers to buy and use it today without risk of it going obsolete as technology improves over the next several years.

Zhuang Jing, a senior official with Motorola China, said he expects the Chinese government will release 3G licenses in the second half of next year.

"Compared with last year's show, this year's show is filled with 3G devices. To me, it's like a 3G feast," said Song Liang, a 21-year-old university student.

NTT DoCoMo Inc, a leading Japanese telecommunication company, said it will establish a 3G-related research and development center in Beijing.

"We hope to cooperate with domestic mobile operators in the 3G business as that is the best method for us to join the Chinese market," said Kensei Ka, the Chinese spokesman for DoCoMo.

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