China's 3G mobile communication subscribers will exceed 10 million in 2006, before exploding to 100 million in the following five years, industry experts have predicted.

The latest report from Analysys International indicates that the development of 3G services this year will drive the increase in 3G subscribers.

The analyst firm estimates that 3G subscribers will account for 2.2 per cent of the total mobile communication subscribers in China this year, rising to 13 per cent within five years.

With the development of the 3G mobile communication market, the "value-added " services market in China will enter what Analysys describes as the " innovation stage".

The firm expects China's 3G mobile value-added services market to reach a value of RMB 20bn in the coming three or four years, accounting for 18.5 per cent of the total mobile value-added services market in China.

"In 2006, after 3G licences are issued in China, domestic 3G equipment investments are expected to reach RMB 30.6bn," said Zhou Yi, an analyst for Analysys International.

"In addition, overseas owners of 3G intellectual property rights will compromise on the 3G patent fees."