China Telecom says no plan to acquire MediaTek

China Telecom Corp Ltd<728>, the country's largest fixed-line telecommunication service provider, denied earlier media reports that it planned to purchase MediaTek, a Taiwan-based fables semiconductor firm, sources reported.

China Telecom said the speculation was untrue after an internal consultation and coordination.

China Telecom has just purchased CDMA from China Unicom<600050><762> for about RMB110 billion and plans to upgrade the network for RMB 80 billion, and it may not have enough financing for this MediaTek acquisition, according to analysts.