China Telecom has also awarded the Alcatel-Lucent subsidiary Alcatel Shanghai Bell a $230 million contract for expanding its CDMA network. The vendor will provide CDMA solutions for the operator in 56 cities and deployment is already under way. The new extended network will be launched by December 2009.
However, despite the contract, there is still speculation that the vendor may exit the mobile network equipment business and solely focus on its fixed line equipment operations. The company has reportedly been struggling in the mobile business and is thereby expected to reveal a new plan for restructuring its business in a short while.
