State-owned cellular phone operator Teletalk on Monday struck a $39.2 million deal with Chinese firm Huawei for its 2G and 3G network up-gradation and expansion.

BSS news agency reports Teletalk Managing Director Gias Uddin Ahmed and Huawei Chief Technology Officer (CTO) Colin Shi put pen on the agreement paper at Posts and Telecommunications Division (PDT) in presence of State Minister Tarana Halim.

Speaking on the occasion, Tarana Halim said Huawei would install 685 2G BTSs and 559 Node-Bs (3G BTS) and upgrade core network of Teletalk in next 18 months involving $39.2 million under the agreement.

She hoped the implementation of this project would help Teletalk to expand its coverage in remote areas across the country.

Mentioning that nearly 8,000 BTSs are required for the Teletalk to expand its footprint every nook and cranny in the country, but the operator, she said, is offering services through only 3,750 BTSs.

Referring to the government's initiatives of Teletalk's network up-gradation and expansion, the state minister said another new project has been adopted for the operator's 2G and 3G network expansion in rural areas.

Posts and Telecommunications Division (PTD) Secretary Faizur Rahman Chowdhury, BTRC Chairman Dr Shahjahan Mahmood and officials concerned were present on the occasion.

Later, PTD Secretary signed Annual Performance Agreement (APA) with its affiliated organizations.