On Telecom Industry Restructuring:
....Rumors of another telecom shakeup and the uncertainty surrounding the timing of the 3-G licenses continue to cause some other delays as operators continue to take a wait-and-see attitude. In spite of these uncertainties, we are encouraged by the strong 2005 spending budget announced by China Mobile and the China Unicom. In particular, China Mobile, our largest telecom customer recently revised its 2005 CapEx budget upward from $5.3 billion [ph] to $7.8 billion [ph] of which a considerable amount has been earmarked for investment in applications to improve operating efficiencies such as [indiscernible] and CRM solutions.
....The issuance of 3-G licenses is still widely expected to occur later this year. We remain confident that when 3-G networks are constructed AsiaInfo will provide a leading role in helping carriers upgrade their current supporting systems to embrace the new technology.
On Outlook for Telecom and Software Services:
....While we continued to see cautious telecom spending during the first quarter, we are encouraged by the strong outlook on market for telecom and enterprise offerings and service offerings.
(Quotes are from the CCBN StreetEvents transcript.)