<P>Section 1: Investment case <BR>Section 2: Underlying trends <BR>— 1) Turning the sector into a FX earner <BR>— 2) Independent regulation<BR>— 3) New emphasis on basic services &amp; West China<BR>— 4) Adopting to global norms in regulations<BR>— 5) Less relative support for the mobile sector<BR>— 6) Support for CDMA<BR>Section 3: Results <BR>— 1) Recent increase in spectrum fee <BR>— 2) Possible four new 3G licenses<BR>— 3) Establishment of a USO fund<BR>— 4) Potential for more a stringent radiation standard<BR>— 5) Potential imposition of CPP <BR>— 6) Increasing support for China Telecom’s PAS<BR>— 7) Less mobile tariff regulations <BR>— 8) Promoting import substitution </P>
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