Teletalk yesterday signed a deal worth $39.2 million with Chinese equipment vendor Huawei to expand its network for both 3G and 2G at all upazilas, growth centres and educational institutions.

Gias Uddin Ahmed, managing director of Teletalk, and Colin Shi, chief technology officer of Huawei, signed the agreement at a ceremony at the secretariat. Tarana Halim, state minister of telecom, was also present.

Under the agreement, the state-owned mobile operator will establish 685 new 2G base stations and 559 3G sites. The operator will also upgrade its core network in the next 18 months with its own funds.

Tarana said the new investment will help the operator become an important contender in the telecom market.

She hoped that the implementation of the project would help Teletalk expand its coverage in the remotest corners of the country.

After signing the deal, Ahmed said some other new projects will also come within a short time, including 4G, which will help it become a vibrant player in the market.

"This expansion and upgradation will improve their core network, transmission network and access network and now people in remote places will get Teletalk's network and service as well," said Ahmed.

Teletalk had floated a tender last year and Huawei won the contract being the lowest bidder, said Ahmed.

Tarana said nearly 8,000 base transceiver stations are required for Teletalk to expand its network, but the operator is offering services through only 3,750 BTSs now.

Last week, the Executive Committee of the National Economic Council approved a project worth Tk 676 crore to expand the 3G network of Teletalk at all the upazilas, growth centres and educational institutions, and 2.5G network in all the villages.

Under the project, Teletalk will build around 1,200 BTSs and set up High Speed Packet Access to improve existing 3G capacity and some 500 BTSs to improve the 2.5G network in rural areas. Telecom Secretary Md Faizur Rahman Chowdhury and Bangladesh Telecommunication Regulatory Commission Chairman Shahjahan Mahmood were present.