The government upon the significance and volume of .the subscribers named separate service based and region based services to reach the end customer. The strong state holds organizations were built into a strong business network .competitive with private players. The fierce competition between the companies has opened up new challenges and avenues which are to be explored to sustain in the industry. The foreign mobile companies with more technology and business strategies provided new challenges for the state-owned companies to withstand in the industry. "No money to be made in a market with more than 1.3 billion people and a 7-8% average GDP growth rate? Doesn’t that sound oxymoronic? Even with regulated competition in the Chinese telecom market, there are abundant business opportunities,". China is the largest populated country providing unlimited opportunities in major sectors .like telecom, Aviation, IT and software solutions. China telecommunications has been separated from affiliation from Ministry of post and telecommunications in 1994. China .Telecom was the only player used to take care of various other applications for entire china. Foreign players are not allowed to venture into China as a part of the constitutional .regulations existing at that point of time. MPT with its arm China telecom has made very bad progress throughout its operations due to factors like The increase of private players absorbing the market of the state-owned .organizations. . .Loosing consumers confidence on the services. Political pressures and their ill effects. The monopoly and the negative consumer perceptions .forced the Chinese government to look for a change that can decentralize and elevate the performance of the telecom .industry. China has established one more organization called China Unicom. China Unicom a new player to start on its own performance failed to impress. The China telecom has shown its influence same as before as it was an arm of MPT (ministry of posts and telecom). China Unicom has been open to involvement by foreign parties. China telecom a serious contender used to confine itself to the native associations. China telecom used to play against China Unicom wherein telecom used to benefit from the deals. China Unicom has been met with resistance by China Telecom, which restricted interconnection with the national trunk network and, where access is granted, on terms that favored China Telecom at the expense of China Unicom and its foreign investors. By controlling the network in a healthy manner, the MPT neglected the development of China Unicom. The cold war between Unicom and telecom restricted foreign investors from making any real inroads in China’s telecom sector. Reforms were initiated for major .developments to serve the consumers more effectively.