China United Network Communications Co Ltd, known as China Unicom, said on Thursday that it has started testing a TD-LTE 4G network, which it will use if the government doesn't allow it to use its favored FDD-LTE technology in the upcoming 4G licensing process.

China's second-biggest mobile operator by subscribers is said to have taken the preemptive action because it expects the government to follow a similar strategy as in its 3G auction, when it first awarded licenses for TD-LTE networks, a technology which is mostly backed by its arch-rival China Mobile Ltd, which has the most subscribers in the country.

The government is widely expected to award 4G licenses before the end of the year. And if it licenses TD-LTE networks first, it will give China Mobile a big edge in the 4G market over its competitors.