China Telecom will spend $4 billion on CDMA expansion

As part of its restructuring, Chinese operator China Telecom will assume control of China Unicom's CDMA network and spend $4 billion to expand the network into rural areas rather than improving capacity or quality of service in existing markets.

The news is certainly promising for CDMA infrastructure vendors such as Alcatel-Lucent. The company has been struggling with economic turmoil in the market, tight credit and stiff competition from vendors such as Huawei.

China announced its telecom restructuring plans earlier this year and said that it would reduce its number of state-owned carriers to three.

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