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China Telecom to Procure 40 Mln CDMA Terminals

Sina Tech, 6/17/11

At the 2011 E-Surfing 3G Internet Handset Fair and CDMA Industry Forum in Guangzhou today, China Telecom (NYSE: CHA; 0728.HK) signed agreements to procure 40 mln CDMA terminals from four major domestic handset distributors and also directly from domestic and overseas handset vendors. Under the deal, China Telecom will purchase approximately 70% of the handsets from distributors China Postel Mobile Communications Equipment, Beijing Putian Taili Telecommunication Technology, Telling (000829.SZ), and Coowin Communication Technology. Non-operator distributors are also expected to sign CDMA terminal procurement agreements with terminal makers during the industry forum.

China Telecom said it aims for China's CDMA terminal market to grow to 60 mln units in 2011.

A spokesperson for the operator said that 3G handsets currently account for 50% of China Telecom mobile phones, and that nearly 50% of 3G handsets were smartphones - 60% to 70% of which were 3G smartphones in the RMB 1,000 price range.

Keywords: market size China Telecom handset procurement wireless 000829.SZ China Postel Telling 3G CDMA E-Surfing 0728.HK CHA Putian Taili Coowin smartphone pricing

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