Analysts say AsiaInfo (NasdaqGM:ASIA), a Beijing company, which sells key back-office support to wireless carriers, is set for explosive growth after China announced a massive wireless industry restructuring in May. The announcement spurred investor interest in the company driving up its share priсe more than 15% in the weeks following the news. AsiaInfo is the leader in its market. It provides software that helps China Mobile and Unicom with billing, setting up customer accounts, customer management and data analytics.

Chinese telco restructuring will create two strong carriers to compete against market behemoth China Mobile (NYSE:CHL). China Mobile has been the clear market dominator with more than 65% of wireless cell phone users and having little threat from China Unicom. China Unicom (NYSE:CHU) the country’s No. 2 mobile phone company, will buy China Netcom Group (NYSE:CN) for $23.8 billion in stock. China Unicom also will sell part of its wireless business to fixed-line carrier China Telecom (NYSE:CHA) for $15.9 billion, creating the third wireless provider.

“Mobile data services market in China.

China has 516 million mobile subscribers (China has a population of 1.3 billion people), more than any other country in the world.

There are anywhere between 40-60 million active mobile data users per month. Despite 3G licenses being continuously delayed, EDGE network is being deployed across the country.

The growth of mobile services in China is driven by a number of factors beyond its large population, including the country’s open mobile web access for software developers, cheap data rates, rapid handset replacement cycle (as short as 9 months), more idle time spent on mass transit as opposed to driving, low Internet penetration — 210 million. About 50% of mobile data users in China do not use the Internet.”

(Compare with Russia: population 145 million with 29.4 million Internet users, 125 million mobile phone users or 85%)

“China currently has the most open mobile internet environment. The operator’s wireless application protocol (WAP) gateways are open for users to visit off-deck WAP sites [this means that a mobile carrier in China won’t try to direct users to its own start page when they access a mobile browser, the opposite of what many US carriers practice.]. Recently China Mobile has implemented an interstitial warning page about data traffic charges when a user visits a WAP site for the first time, but this has not impacted WAP usage too much.

Since data traffic fees are low in China (recently the largest province GuangDong offered a package of 5 RMB=$0.60 USD for 100Mb per month) users visit a lot of WAP sites.

The top WAP site in China, www.3g.cn, gets anywhere between 400-500 million daily pageviews — that’s DAILY — far outstripping any other country. Note that since a mobile phone has a very small screen, a desktop pageview is equivalent in amount of content to about 7-10 mobile pageviews.

China’s mobile market is quite a bit more advanced than US in terms of usage and variety of services available. There are already 30+ mobile client applications out here in the Chinese market, including mobile RSS readers, mobile community applications, full-page mobile magazine readers, and mobile instant messaging clients. Many of these have been around for more than two years, with more than 1 million registered users.”