Qiao Xing's (XING) subsidiary will supply China Telecom's (CHA) Shenzhen branch with CDMA Wireless Cityphones.

The initial purchase order is for 20,000 units and the negotiation regarding a second order of 100,000 units has started. It is anticipated that this Cityphone business will bring in additional revenue for Qiao Xing of up to USD15 million within the next 12 months following the first shipment.

Like the PHS phone, the CDMA Wireless Cityphone is a mobile wireless communication terminal product based on the landline network mainly operated by China Telecom and China Netcom in China. It uses the CDMA technology instead of the PHS one, therefore, the former is much more advanced in terms of technology.

The advantages of the CDMA technology over its counterpart include better communication qualities and ease in transition to 3G. Based on the one-way charge system, the airtime charge for using Cityphone is the same as that for the indoor telephone.