Following on its U.S. $16 billion agreement to acquire the CDMA wireless assets of China Unicom, the parent of fixed line phone carrier China Telecom (CT) unveiled plans Monday to spend $11.7 billion to upgrade and expand its newly acquired mobile network over the next three years. CT’s purchase of CDMA facilities owned by China Unicom—China’s second largest wireless carrier—is part of a larger restructuring of state-owned assets within China’s burgeoning telecom sector that is intended to boost competition against China Mobile, the nation’s dominant wireless service carrier and the world’s largest mobile phone operator in terms of subscribers. CT, which is acquiring 43 million wireless subscribers through the transaction announced on Saturday, aims to boost that number to 100 million customers within the next three years. While CT’s parent would spend $11.7 billion on upgraded wireless infrastructure and base stations, CT would lease CDMA network facilities from its parent for an amount equal to 28% of its revenues derived from the new wireless business. Sources anticipate that the sale of China Unicom’s CDMA business to CT will be completed by year’s end.