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Meanwhile, the company has developed a new generation wireless broadband access standard McWiLL, which is competing with Intel's WiMax to become China's national standard.

"The IPO may allow Xinwei Telecom to promote its McWiLL," said Guo Fei, an analyst with Analysys International, a Beijing-based telecom consultancy.

The Chinese government has been testing different systems for the potential successor to WiFi, which allows wireless access to the Internet. WiMax, promoted by Intel, is facing competition from McWiLL in China since the nation voiced its intention to cultivate home-grown standards.

It was previously reported that China Netcom, a major fixed-line operator, had adopted the McWiLL standard for the 2008 Olympic Games. Moreover, China Mobile began a McWiLL network in Chongqing Municipality for commercial trial use, while China Netcom did the same in Guangdong Province.

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