Shanghai is expected to receive a total investment of 17 billion yuan (US$2.5 billion) this year from the three domestic telecommunications operators, a jump of 30 percent from last year's level.

The three firms said in a statement yesterday that most of the funds will be poured into the next-generation mobile communications network and also to prepare for the World Expo 2010, which the city will host.

The local branches of China Mobile, China Unicom and China Telecom have signed agreements with the Shanghai Economic and Information Technology Development Commission to invest in the city to stimulate the local economy and prepare for Expo events.

Out of the total budget, the three telcos will invest 2 billion yuan in the Expo by setting up 3G and 4G networks in the area around the event, construction of the broadband network and security systems.

In 2008, they invested 13 billion yuan in Shanghai. The telcos generated a combined revenue of 40.5 billion yuan, a 13-percent growth year on year.

The telcos will also help small and medium-size enterprises to set up their Web pages and improve information technology infrastructure, which will create 10,000 new jobs directly or indirectly, they said.

Nationally, the three telcos invested a total amount of 120 billion yuan on 3G in the first quarter, the Ministry of Industry and Information Technology said. The three telcos will directly invest 400 billion yuan in the construction of 3G projects in the next three years under the ministry's plan.

China issued 3G licenses in January to the three carriers.

(Shanghai Daily April 28, 2009)