SK Telecom has been looking to expand abroad in the face of market saturation at home and is keen to become a player in the larger Chinese market. The stake will give it a foothold before the shakeup expected to come with 3G. It has long been speculated that China Unicom, the country's smaller mobile operator behind China Mobile, will be broken up as part of a government restructuring once 3G licenses are awarded, likely becoming absorbed by China Netcom or China Telecom.

    HongKong-based Hutchison Telecommunications International Ltd. (NYSE: HTX - message board), too, is expressing interest in partnering with carriers on the mainland to develop 3G. The company, which reported first-half earnings on Tuesday, is flush with cash following the sale of its Indian operations to Vodafone Group plc (NYSE: VOD - message board) in February. HTIL's net profit soared from HK$2 million ($255,991) in the first half of last year to HK$70 billion ($8.96 billion), which includes a one-time gain of HK$69.3 billion ($8.87 billion) and gives it an extra HK$40 billion ($5.12 billion) in cash. (See HTIL Reports Q2 KPIs.)

    According to the South China Morning Post, HTIL CEO Dennis Lui Pok-man said after the earnings announcement that the company "will definitely consider" investing in China when it becomes clear who will get a license. He added that HTIL would want to be involved in management and operations rather than just plowing in cash. Hong Kong-based PCCW Ltd. (NYSE: PCW - message board; Hong Kong: 0008) has said it intends to partner with China Netcom's parent if the latter receives a license.