China's telecom operators could do with a lift after record investments in 3G networks and cut-throat competition for customers took a big bite out of their profits last year.

But although capital expenditure at China Mobile, China Unicom and China Telecom is set to drop from highs this year, the country's three big operators are preparing for the next challenge. This time it is not from each other but from outside.

Barely a year after handing out 3G licences – a move that kick-started competition in the sector – in January the Chinese government announced a push for convergence between telecoms, broadcasting and the internet. Beijing said it would aim to break down regulatory barriers between the three industries and allow broadcasters to start offering telecom services, and vice versa.