Ericsson has inked a contract with China Telecom, wherein it would upgrade the operators’ packet data serving node (PDSN), expand its CDMA packet core network and provide related services for a period of two years.

The deal is expected to 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.

In addition, Ericsson will also deploy a smart pipe solution customised for CDMA networks. It will be deployed in the 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 optimise the utilisation of network resources, target different subscriber segments, and create new sources of revenue.