CHINA has issued licenses to operate 4G wireless networks to China Telecom and China Unicom, two of the country’s three carriers, the Ministry of Industry and Information Technology said Friday.

    The development is likely to greatly boost revenue at the two rivals of No.1 carrier China Mobile, and win back Chinese smartphone users who demand cutting-edge Internet speeds.

    China Mobile has enjoyed explosive growth in 4G subscribers since its own license was approved in late 2013, with close to 107 million users at the end of January. 4G subscribers pay far more on average than other customers.

    Hamstrung without 4G licenses, the two smaller carriers have been lagging behind China Mobile over the past year, sparking speculation of a possible merger that the government has flatly rejected.

    China Telecom said in a statement the license would benefit its business and “simultaneously intensify market competition.”

    At the end of January, China Telecom and China Unicom reported 187 million and 299 million mobile subscribers respectively, figures dwarfed by China Mobile’s 806 million.

    (SD-Agencies)