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China Telecom to Expand CDMA Capacity to 70 Mln Users

China Business News, 10/28/08

At a China Telecom (NYSE: CHA; 0728.HK) press conference held recently, deputy director for network development, Xu Sui, revealed that construction on CDMA networks in 342 cities throughout the country will be completed by the end of this year, after which China Telecom's CDMA network capacity will reach 70 mln users. China Telecom began optimizing networks for 44 major cities on October 15, and expects to complete optimization between November and the end of the year. Under the company's plans, CDMA network quality in major cities will reach industry-leading levels by the end of the year, with network quality in other cities to reach the same standard some time thereafter. A major area of focus in China Telecom's development plans is to satisfy the wireless Internet needs of 82 'developed' cities.

Hou Chunyu, director of China Telecom's technology department, revealed that China Telecom plans to merge and connect its CDMA450 network with its newly obtained 800 MHz CDMA network. Thereafter, China Telecom will introduce dual-frequency CDMA handsets, but at the moment it is still waiting for dual-frequency mobile chips. The Ministry of Industry and Information Technology (MIIT) has stipulated that CDMA450 may only be used in rural connectivity projects in developing areas, and may not be used to build out mobile services.

Hou also revealed that China Telecom had completed CDMA2000 technical tests on its CDMA network this month.

Keywords: network construction strategy Hou Chunyu Xu Sui CDMA2000 0728.HK CDMA CDMA450 CHA China Telecom MIIT users wireless wireless networking

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