China will announce a revamp of the telecoms sector by early March, which when completed will leave the country with three industry giants able to provide a full range of services, state radio reported late on Thursday.

The long-awaited shake-up, seen as a precursor to the issuance of licenses to operate third-generation services, will be unveiled before the March 5 opening of China's National People's Congress, the report said without citing sources.

The plan will create companies able to compete in both fixed-line and mobile services, and could also bring changes in top industry positions.

The parent company of Hong Kong-listed China Mobile, the world's biggest mobile telephone operator, would merge with the national railway's fixed-line unit, China Tietong, the report said.

China Unicom's GSM mobile business would join with China Netcom Group while China Telecom Corp, the country's top fixed-line operator, would acquire Unicom's CDMA mobile telephone business.

China Satcom will be merged into China Aerospace Science and Technology Corp, which will quit the civil telecoms market, the report added.