China Telecom will reportedly begin selling devices compatible with its newly-acquired CDMA mobile network in October this year. According to a TradingMarkets.com report, citing Chinese newswires, China Telecom has contacted potential handset suppliers and is currently drafting a set of customised standards that will enable the production of low-cost devices. China Telecom’s newly established terminal customising unit will procure the devices, the report says. The unit will sit alongside three other departments: individual user division, mobile service division and wireless network optimising centre.

China Telecom acquired the CDMA business from China Unicom last month as part of the restructuring of the Chinese telecoms market. The deal marks the fixed-line operator’s first foray into the Chinese mobile market. China Telecom has reportedly set a target to expand the number of its CDMA subscribers to 100 million in 2009, up from the 43 million currently using China Unicom’s CDMA network. However, subsequent reports suggest that the network will struggle against larger GSM competitors China Unicom and China Mobile and may need a significant cash injection – possibly from a foreign investor – in order to compete effectively. China Telecom has also been linked with plans to migrate the network to Long Term Evolution (LTE) technology within the next three years.