News Brief

ZTE Partners with KPN Group Belgium to Deploy Packet Switched Core Network

27 August 2012, Brussels ― ZTE has signed a packet switched core network (CN) deal with KPN Group Belgium (KPNGB). KPNGB will deploy ZTE’s packet switched CN equipment which supports unified radio access. The contract is the second of its kind between ZTE and KPN, following the September 2010 CN construction project with KPN Germany (E-Plus).

ZTE’s Uni-Core solution supports the seamless evolution from 2G/3G packet core to evolved packet core, and assists operators in supporting unified 2G, 3G and 4G access. ZTE helps operators  build a smart pipe that supports service differentiation and traffic distribution, and enables a flexible policy mechanism. This will help KPNGB deliver differentiated services, further enhancing its service innovation capability and network competitiveness.

ZTE Partners with German Distributor VITEC to Strengthen Its Enterprise Channel

3 September 2012, Shenzhen ― ZTE and VITEC Distribution, headquartered in Mainz, Germany, signed a general distribution agreement on 30 August 2012 for selling video conferencing systems in Germany. The agreement allows the partners to jointly market video conferencing terminals and servers to enterprise customers.

The German ICT market is one of the largest in Europe, where small and medium-sized enterprises (SMEs) account for over 99.7% of firms. With its high-definition (HD) audio and video solutions, ZTE introduces a high-quality, cost-effective and user-friendly way for SMEs to start using video conferencing without the cost of expensive video bridges and superfluous exchange services.

The T700 HD video conferencing terminal, ZTE's flagship product, has been designed specifically to meet the needs of enterprise customers. Easily installed into meeting rooms, the device features 1080p resolution and supports broadband audio. The T700 HD video terminal delivers excellent audio and video signal, perfect for a business environment.

The ZXV10 M900 is ZTE's HD video conferencing server and supports up to 20 end user devices and 720p, 1080i, 1080p HD and broadband audio. Through its universal port, the M900 is able to support a multi-speed access meeting.

ZTE's Global Debut of Grand X LTE (T82) with China Mobile Hong Kong

28 August 2012, Hong Kong ― ZTE announced the global launch of the Grand X LTE (T82) in Hong Kong in partnership with China Mobile Hong Kong Company Limited (CMHK).

The Grand X LTE (T82) is the company's first single-chip LTE smartphone equipped with a 1.5 GHz dual-core CPU, which is based on advanced 28 nm technology. When compared to most phone models available in the market, the single-chip model is faster and more energy efficient. It showcases a 4.3-inch qHD screen which provides an exceptional HD quality visual experience. The device has an 8 mega pixel rear camera that supports 1080p HD video shooting and playback. The camera module with enhanced flash light captures the sharpest images day and night. In addition, there is a front camera that supports 720p HD video calls. The Grand X LTE (T82) is also WiFi capable and uses Android 4.0. The maximum download rate of 100M plus the robust configuration of the product allows users to download over 600,000 Android applications and enjoy a brand new mobile experience. The Grand X LTE (T82) also has a unique buttonless design resembling a mini tablet PC.

ZTE Revenue Rises 15% to RMB 42 Billion

Company sees 26% growth in domestic market

22 August 2012, Shenzhen ― ZTE announced its interim results for the six months ended June 30, 2012.

Based on HKFRS, ZTE recorded revenue of RMB 42.64 billion for the period, an increase of 15.2% year-on-year. Pre-tax profit in the period was RMB 656 million, a decrease of 48.5% year-on-year. Basic earnings per share for the period were RMB 0.07.

Applying PRC ASBEs for period ending June 30, operating revenue was RMB 42.64 billion, representing year-on-year growth of 15.2%. Total profit in the period was RMB 656 million, a decrease of 48.5% year-on-year. Basic earnings per share for the period were RMB 0.07.

During the reporting period, ZTE reported operating revenue of RMB 20.89 billion from the domestic market, accounting for 49% of overall operating revenue and representing year-on-year growth of 26.4%.

From the overseas market, ZTE reported operating revenue of RMB 21.76 billion during the period, accounting for 51% of its overall operating revenue and representing year-on-year growth of 6.2%. The company endeavored to enhance its market position by focusing on growing its business in developed nations and by cooperating with mainstream global carriers. It also consolidated market share in emerging markets.

ZTE reported revenue of RMB 21.28 billion for carrier network products during the period, representing year-on-year growth of 3.9%. Terminal products revenue was RMB 14.25 billion, representing year-on-year growth of 27.1%. Revenue for telecommunication software systems, services and other products was RMB 7.11 billion, representing year-on-year growth of 33.8%.

In the first half of 2012, ZTE capitalized growth opportunities for 4G and wireless products in Asia Pacific markets such as China, Japan and India. In July 2012, ZTE won an LTE network construction project with China Mobile in Hong Kong. The completed network will be the first dual-mode LTE network in the Asia-Pacific region.

In April 2012, ZTE assisted Bharti Airtel, one of the largest mobile operators in India, with the launch of the first commercial TD-LTE network in Kolkata, a milestone for TD-LTE commercial network deployment in India. To date, ZTE has constructed trial and commercial networks in 19 countries for 33 leading global operators. Of these, nine are commercial networks.

ZTE also saw a 70% increase in sales in its government and enterprise business for the period ending June 30, compared with the same period a year earlier. This was partially due to the company’s launch of data center products and a series of smart solutions in the government and business arenas, including smart mine, smart city and smart traffic system. ZTE’s videoconferencing products also have been adopted by leading operators in Europe and the United States.

During the period, ZTE entered the global top five of smartphone manufacturers, maintaining its No. 4 ranking for number of handsets shipped in the second quarter of 2012, according to IDC research. In addition, ZTE has moved into the mid- to high-end smartphone market with the recent launch of its ZTE Grand series of smartphones in several countries.

In the second half of 2012, ZTE will capitalize on opportunities presented by capacity expansion and upgrades of global wireless networks, national broadband strategies and changing government and corporate smart terminal requirements. ZTE will continue to focus on developing nations and mainstream carriers while expanding its business in the government and corporate service sectors. Meanwhile, the company will maintain its efforts to strengthen cash flow, control risk and optimize processes with a view to improving efficiency.