Foreign equipment makers are expected to cash in after the Chinese government announced a huge restructuring of its telecommunications market.

Over the weekend the Chinese government announced that it was increasing competition by bringing together mobile and fixed-line operators under three super companies.

When the merges are done, the government will provide licences for next-generation services.

The plan involves the creation of three groups based around China Mobile and fixed-line carriers China Telecom and China Netcom.

The move will create stronger competitors to China Mobile, which dominates China's market and is the world's biggest carrier by number of subscribers.

China's fixed line businesses are being eclipsed by the mobile companies and the government feels if they are better included until mobile phone businesses.

Foreign carriers are still forbidden to enter the market, but technology companies expect the deal to provide them with large orders for new gear, particularly when the 3G licences are announced. X