China GrenTech Corporation Limited has announced that it has won a bid to supply CDMA Wireless Coverage Products to China Telecom (News - Alert). According to the terms of the contract, China GrenTech will provide CDMA indoor coverage equipments and accessories, and repeaters for China Telecom's CDMA network construction projects in China.

Company sources said that this was China Telecom's first centralized bid for CDMA wireless coverage products. The evaluation criteria for each bidder's tender included its comprehensive strength, technology and pricing.

China Telecom's provincial operators' specific construction plan and scope of work will decide the actual market share allocation and contract amount for each bidder. The specifics will be available after China Telecom completes the integration of its newly acquired CDMA network, company officials added.

An expansion of the CDMA network was expected after China Telecom took over China Unicom's (News - Alert) CDMA network in July 2008. Analysts said that China Telecom would aim to increase the investment in the CDMA network significantly so that it can compete with the GSM network.

The parent company of China Telecom has announced it will invest RMB 27.9 billion in Phase I of the CDMA network construction to enlarge network capacity as well as improve coverage quality in major cities and in rural areas that are high in population density.

Company sources said that China GrenTech believes that the bid it won with China Telecom would potentially boost its wireless coverage revenue in the coming quarters.

China GrenTech designs and manufactures wireless coverage products, which enable telecommunication operators to expand the reach of their wireless communication networks to indoor and outdoor areas. The company also provides wireless coverage solutions providers for China Mobile (News - Alert), China Unicom, China Telecom and China Netcom.

China GrenTech has well-established business relationships with all 21 of China Telecom's provincial operators and has provided approximately 20 percent of the existing CDMA network coverage products in China Unicom.

China GrenTech is confident that it can leverage its experience in CDMA network construction projects to maintain a leading position in China Telecom's upcoming CDMA wireless coverage construction projects.
China Telecom Corporation Limited is the world’s largest wireline telecommunications and broadband services provider, providing telecommunications and information services including voice, data, image and multimedia in China. It has about 220 million fixed line subscribers and over 35 million broadband subscribers.

source:tmcnet