China Telecom Group has invited telecommunications equipment makers to submit bids for the expansion of its recently acquired 2G cellular network, a project that could be worth as much as 30 billion yuan (HK$34.35 billion).
The upgrade is part of China Telecom's plan to meet growing demand for mobile services as it becomes a full service operator. The network uses United States-based code division multiple access technology.
The mainland's largest fixed-line company is expected to award the first batch of CDMA network contracts to successful bidders by the end of this month. The service will be launched as early as October.
China Telecom will pay 66.2 billion yuan to China Unicom Group for its CDMA mobile network assets as part of a restructuring of the mainland telecoms industry. The acquisition will make China Telecom a full service operator, able to offer both fixed line and mobile services.
China Telecom, the Hong Kong-listed arm of China Telecom Group, will acquire China Unicom's CDMA subscriber base for 43.8 billion yuan.
The upgrade contracts, which would include providing base stations and network equipment, could be worth between 27 billion and 30 billion yuan, industry sources said. The key aim of the upgrade is to boost the geographical coverage of the network rather than lift the number of users able to connect to it.