International branded vendors, domestic handset vendors in China, and Taiwan-based handset makers are readying to compete for CDMA handset orders to be released by China Telecom, which has been granted a license to offer CDMA 2000 services in China, according to industry sources in Taiwan.
China Telecom is expected to purchase about 55 million CDMA handsets in 2009 although the company currently only has a total of 28 million subscribers, indicating the company's determination to push forward its upcoming 3G services, the sources noted.
In preparation for the purchase of the CDMA handsets, China Telecom president Wang Xiaochu recently held a meeting with ranking executives from four candidate suppliers as well as four China-based retail channel operators.
The four potential suppliers are Nokia, Samsung Electronics, Motorola and LG Electronics, while the four channel operators are China Putian Information Industry Group, China National Postal and Telecommunications Appliances (CPTA), China Telling Communications and Sinomaster Group.
China Telecom plans to initially launch CDMA services in 324 cities in China in the first half of 2009, utilizing its current CDMA 2000 1x network, which will then be upgraded to CDMA 2000 1x EV-DO Rev A later, according to China Telecom's roadmap.
China Telecom also aims to boost the number of its 3G subscribers to 150 million in the next three years, accounting for 15% of China's mobile communications market.
Currently, Samsung is most active in the China CDMA handset market, accounting for an over 40% share in the segment, followed by Motorola with 15%, LGE with 10% and Nokia with 4%, according data from CCID Consulting.
China-based Huawei Technologies and ZTE, which currently hold 10% shares each in the CDMA segment, are expected to see their market shares improve substantially after China Telecom launches its procurement project, the sources asserted.
Taiwan-based Dopod and Inventec Appliances are expected to receive CDMA handset orders directly from China Telecom, while Compal Communications and Foxconn International Holdings (FIH) may also secure part of the orders indirectly via Motorola and Nokia, the sources noted.
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