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China Telecom to Spend Big on New CDMA Prize
(28 Jul 2008, BWCS Staff)State-owned telco giant China Telecom is to pour Yuan 80 billion (US$12 billion) into CDMA technology over the next three years. The new money is to be spent on expanding and upgrading the CDMA network that it purchased recently.
Last month China Telecom agreed to pay Yuan 66.2 billion for the Unicom group's CDMA network which has long been seen as the cheaper, less attractive alternative to China Mobile's GSM service. As part of the deal, the Hong Kong-listed company said it would also pay Yuan 43.8 billion to take control of Unicom's CDMA customers and business.
Last month, China Mobile signed a US$1 billion contract with Alcatel Lucent to upgrade and expand its GSM infrastructure. At the time Swedish supplier Ericsson was said to have been pipped to the deal by the French American giant. However, Ericsson CEO, Carl-Henric Svanberg, was quick to point out that his company was not even competing for the chance to provide mobile communication equipment and services.
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