Chinese telecom watchdogs have ordered China's phone companies to share their networks.The move is part of a Ministry of Industry and Information Technology restructuring that is to clear the way for introduction of third-generation mobile phone service.

The big idea is to hold down costs and avoid duplication as carriers roll out 3G service.The 3G roll out is expected to trigger billions of dollars in orders to foreign equipment suppliers as carriers upgrade networks.

The Ministry of Industry and Information Technology  has delayed issuing 3G licenses while they restructure state-owned carriers into three groups, each with mobile and fixed-line service, in an effort to spur competition.

The Ministry of Industry and Information Technology said that existing telecom towers and lines must be open to rivals.  In some cases operators should join together in building new base stations and transmission lines.