Chinese firm Haier Mobile has been shortlisted by state-run BSNL to provide CDMA handsets under the PSU's bundled scheme which will be launched by the end of this year.
The company's handset will be bundled with BSNL's CDMA service for the East Zone, Haier India Mobile President Sudhir Agarwal said.
In July, BSNL had invited bids from various handset firms for launching the bundling scheme.
For its CDMA network, the operator plans to set up 10,000 wireless towers within a year. BSNL already provides fixed wireless and limited mobility service on CDMA platform under the name 'Tarang' in some of the existing circles.
The PSU telcom major, which is investing about Rs 2,000 crore on a CDMA network roll-out, has already invited expression of interest from tower companies and other interested parties for infrastructure sharing.
After government allowed dual technology use by telecom companies, the two PSUs, BSNL and MTNL were among the existing GSM operators seeking to offer CDMA service in the country.
BSNL's move to offer full-fledged CDMA services comes at a time when existing players in this segment such as Reliance Communications and the Tatas are moving to the GSM turf.
In the initial stage, BSNL will limit its CDMA offerings to the top 500 towns and cities across India.