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China's largest fixed telecom service operator China Telecom is accelerating Wi-Fi deployment and plans to launch a new round of bidding for procuring wireless network equipment in 21 provinces, Shanghai Securities News reported.

The large-scale deployment indicates the business focus of China Telecom is moving to the wireless network sector, which further indicates the company may abandon PHS service in 2009, said an industry insider.

Reports said China Telecom will take over the CDMA network of China Unicom in China's telecom industry reshuffle. After that, it will transfer its PHS users into CDMA users smoothly through marketing tactics, the insider predicted.

The source added that deployment of wireless network will lift the customer loyalty for China Telecom, which will sharpen the competitive edge of its mobile service.