ZTE Unveils its FTTx Business Model for Asia-Pacific

Ranked Second in Worldwide Broadband Revenues by Ovum,
ZTE Looks to Expand into Asia with New Broadband Acceleration Solution

June 16, 2010, Singapore –ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and network solutions, unveiled at CommunicAsia2010 today its “Asia-Pacific FTTx Business Model,” developed specifically to accelerate broadband deployment in Asia Pacific.

According to a recent Point Topic report, countries in Asia-Pacific are seeing the fastest broadband growth, including China, Indonesia, Philippines, Vietnam and Pakistan. In addition, most countries in the region, including Indonesia, Philippines, Vietnam and Thailand, have a broadband penetration of less than 10%. A 2009 Ovum report presented a huge need for broadband infrastructure development in these countries.

ZTE’s Asia-Pacific FTTx Business Mode leverages the company’s extensive knowledge and experience in constructing and deploying broadband networks, both in Asia and worldwide. The plan, aimed at driving Asian-Pacific broadband development and deployment into an “accelerated fast lane,” focuses on three aspects: planning, operation, and environmental protection:

•  Planning: the model strengthens the terminal-pipe-cloud network architecture, promotes the coordinated development of fixed-line broadband and 3G networks, and extends the value of a broadband network to the two sides of service clouds and intelligent home networks.

• Operation: the primary operation model involves service cloud and management mechanisms; methods of terminating and marketing home network services; high-bandwidth, fast, flexible end-to-end configuration, offline diagnostics, end-to-end management, fast fault location, a three-dimensional terminal network, and many more.

• Green networks: The new model accommodates IPv6 evolution, next-generation PON, energy saving measures and emissions reduction.

ZTE developed its Asia-Pacific broadband acceleration plan based in part on its work with Telecom Malaysia and China Telecom and other operators in the region. Top-of-mind concerns for all operators are the development and deployment of efficient and cost-effective networks that are designed with upgradeable paths.

“An efficient broadband infrastructure is critical for any country that wants to effectively compete in today’s global economy,” said Mr. Xu Ming, ZTE Vice President“We have been working diligently to devise a broadband deployment model that will help Asia countries to rapidly develop and deploy state-of-the-art broadband networks, and look forward to helping more operators move with their expansion plans.”

According to Ovum’s latest research, ZTE Corporation ranked second in the world in terms of market access with a 16.5% share in global revenues of 2009. The research agency also placed ZTE second for overall sales of broadband access (DSL, MSAN in the broadband part, FTTx, as well as CMTS) in 2009.