China Telecom completes $13.3 billion CDMA acquisition
China Telecom has completed its acquisition of CDMA network assets from its parent China Telecom Corporation for $13.3 billion.
The deal is designed to reduce the company’s costs over time as mobile subscriber numbers increase, giving it direct control over future network investment decisions and allowing improved integration of mobile network and service operations.
It will also be crucial as the company looks to gain market share through users migrating from 2G to 3G services in the country.
“The board is pleased to announce that the acquisition agreement has become effective pursuant to its terms, and all conditions precedent to completion have been fulfilled,” the company said in a statement.
Chairman Wang Xiaochu said at the time the deal was announced that 900 million 2G users nationwide in the country were potential 3G customers for the company.
China Telecom previously leased the assets, which include 2G and 3G infrastructure covering 30 provinces, municipalities and autonomous regions, from its parent.
The company will continue to lease CDMA network facilities that were not included in the deal.