China unveiled two mega telecom deals on Monday, as the government boosts competition in the industry. Mobile operator China Unicom will unload its underperforming CDMA network to China Telecom, and take over fixed line giant China Netcom.

China Telecom announced the deals on Monday. The Hong Kong-listed company will pay 60 percent of the total 110 billion yuan to purchase China Unicom's CDMA network. While its parent company will pay the remainder to acquire the CDMA business. The deals will be done in three cash installments.

In the meantime, China Unicom, the smaller of the country's two wireless operators said it will issue new shares and swap 1.5 per shares for every share in Netcom, the smaller of China's two fixed-line carriers. The deal is estimated at over 400 billion yuan.

China disclosed details last month of a long-awaited revamp of the telecom sector, which called for the country's six telecommunication companies to merge into three groups.

The government says the moves aim to create a more competitive telecom industry and prevent a dominant operator from monopolizing the market.

Analysts say Monday's announcements mark the first steps in a sweeping restructuring that is expected to roll out high-speed third-generation mobile services and change customers' lifestyles in a few years' time.

After four years of waiting, other analysts remain skeptical that 3G will be rolled out anytime soon. But they admit the revamp will open up the doors to foreign investment and billions of dollars in purchases from telecom gear makers.