Motorola to Supply China Telecom: Report

Updated from 9:54 a.m. EST

China Telecom (CHA) has picked Motorola (MOT) as a key supplier of its next-generation wireless infrastructure, according to a report.

Motorola will help China Telecom upgrade its CDMA network infrastructure to include broadband data capability and advanced multi-media services, according to ChinaTechNews.com. The new equipment should facilitate advanced data transfers allowing for video streaming and music downloads to wireless subscribers in China.

The equipment will be installed in early 2009 and is part of a larger project to upgrade China Telecom's entire nationwide CDMA network to next-generation capability, according to the report. Additionally, the installation of this new equipment will expand China Telecom's coverage footprint and replace older equipment in markets where Motorola network gear has been operating for many years.

In May, Chinese officials announced a plan to merge six state-owned phone providers into three in a move designed to offer more competition for China Mobile (CHL), which has the largest subscriber count in the world with nearly 400 million.

Three 3G spectrum licenses have been pinned to the merged companies once the restructuring is completed: wideband code division multiple access (WCDMA), time division synchronous code division multiple access (TD-SCDMA), and standard CDMA.

Since the reshuffling was originally announced, China Telecom has acquired CDMA licenses from China Unicom (CHU). Following that transaction, China Unicom merged with China Netcom (CN) in a deal worth $24 billion, with the combined company set to build out a 3G network based on WCDMA technology. China Mobile, meanwhile, is committed to operating a TD-SCDMA network.