Ericsson will upgrade China Telecom''s packet data serving node (PDSN), expand its CDMA packet core network and provide related services for a period of two years.

The deal will improve end-user experience, help China Telecom find new sources of revenue and lay the groundwork for a smooth evolution to LTE in the future. This is the first time Ericsson will supply a complete CDMA packet core network solution to China Telecom.

In addition, Ericsson will also deploy the world's first smart pipe solution customized for CDMA networks. It will be deployed in Zhejiang and Anhui provinces.

Ericsson's solution will play a key role in the development of China Telecom's packet core network and the operator plans to eventually incorporate it into its CDMA networks across the country. By deploying the solution, China Telecom will be able to optimize the utilization of network resources, target different subscriber segments, and create new sources of revenue.

"Ericsson is pleased to cooperate with China Telecom, the world's largest CDMA operator, in this groundbreaking project. With our rich experience and leading expertise in mobile networks, we're committed to supporting China Telecom to create a better mobile broadband experience for tens of millions of CDMA subscribers inChina” said Mats H. Olsson, President of Ericsson Region China & North East Asia.

Ericsson's high-performance, end-to-end CDMA solution will enable China Telecom to cost-efficiently provide a full range of services to its 129.25 million CDMA users, including 38.7 million 3G subscribers.