"China Mobile will enlarge the advantage gap in future unless the industry is restructured," Tebon said. "Even it happened, China Mobile would lead the market for a long period."
The restructure, which means merging China Unicom's code division multiple assess (CDMA) with China Telecom and China Unicom's global system for mobile communications (GSM) business with China Netcom, is expected to be announced soon, analysts said.
Olympics in 3G
After the restructure, fixed-line phone carriers will have a mobile license on 3G and be able to directly compete with China Mobile.
China Mobile also started trial commercial 3G services based on home-grown technology last month in 10 cities nationwide in preparation for the Beijing Olympic Games.
"China Mobile can get 3G operation experiences and occupy a major stake of the Olympic communications market through the services," said Fu Liang, an analyst for Wanfang Consulting.
"Other carriers have to wait for a mobile license or 3G license," Fu added.
China Unicom, the country's smaller carrier, can't compete with China Mobile. The top band of China Mobile users have attributes of high consumption ability and are regarded as the high-end users. China Unicom, as a newcomer, can't touch them as they are not willing to change their phone numbers, according to China Unicom.
"China Mobile has a solid high-end user group and we can compete with them through price campaign. That helps us get low-end users but they won't bring us profit," said a China Unicom official who declined to be identified.
Other regulations to be launched
Online video Websites
The country has required new private video sharing Websites cooperate with state-owned Websites. The Websites, including Tudou.com, have to get licenses from government to continue operation.
Key industries
