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Network upgrade planned

ZTE

China Telecommunications (China Telecom), the country's dominant fixed-line operator, plans to upgrade three key provincial operations with a 10 gigabit per second (gbps) capacity optical network through Canada-based Nortel Networks. The contract, worth US$44 million, includes the installation of an fibre-optic network in Hebei province linking 11 cities and increasing the company's network capacity in the province 50-fold. Nortel will also install similar systems in China Telecom's networks in Jiangsu and Jiangxi provinces. With previous agreements, China Telecom has signed US$145 million in optical backbone contracts with Nortel. Analysts said foreign telecommunications equipment providers would be the biggest winner under the continued opening up of telecoms sectors due to the growing demand for telecoms equipment. China Telecom plans to complete the network in three to five years, to replace its narrowband telecoms network.

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