ZTE and BT Movio sign contract for 3G DAB-IP handsets for mobile broadcast services

ZTE Corporation and BT are to jointly develop handsets for Mobile TV and DAB digital radio services.  ZTE, a leading global provider of telecommunications equipment and network solutions, and BT Movio, the wholesale mobile entertainment service of BT PLC, will deliver multi-mode 3G / DAB-IP handsets, enabling mobile operators to deliver entertainment such as Mobile TV and DAB digital radio alongside existing 3G streamed services.

With this announcement, ZTE will become the first vendor in the world to support DAB-IP technology in its 3G handsets.  The dual-mode 3G / DAB-IP handsets will enable mobile operators to reduce the cost of entry for new mobile TV and DAB digital radio services and easily cross-sell premium broadcast services to existing 3G subscribers.

"Handset choice is a key ingredient for the success of our wholesale mobile entertainment service proposition," said Emma Lloyd, managing director of BT Movio.  "We are delighted to be working with ZTE, who are already establishing themselves as a 3G supplier in Europe, to bring additional handsets to the BT Movio device roadmap."

Mr. He Shiyou, SVP of ZTE Corporation and General Manager of Handset Division, commented: "As the uptake of 3G services continues to grow, so consumers are demanding a richer experience and one that is complimentary to their other 磀igital? broadcast services.  By using DAB-IP, mobile operators can move immediately to deploy mobile TV services and seize the lead in what is set to be the next major battleground for subscribers.  On the mobile TV and DAB digital radio handset, features such as an easy-to-navigate programme guide will be critical in providing the interface between the subscriber and the content available.  This content, regardless of its source, can be presented seamlessly offering increased choice to the consumer and higher flexibility to the operator. Together with BT Movio, ZTE is bringing digital TV and radio services to the mobile device and developing industry standard DAB-IP handsets that will set the benchmark for mobile operators globally."

Mobile TV is expected to generate 210 million subscribers globally by 2011, with the standards fragmented between DAB, DVB-H and MediaFlo.  The digital audio broadcasting (DAB) technology has key advantages over rival mobile TV standards including both the extensive support of media companies already delivering DAB digital radio services and its immediate availability - in contrast, for example, to DVB-H which requires additional spectrum that may not be fully available in the UK until 2012.

Last week, Virgin Mobile and BT Movio announced the launch of their service in the UK will be on the 1st of October. This will be the first time that TV, DAB Digital Radio, a 7 day programme guide and 磖ed button? interactivity will be available on a mobile phone anywhere in the world. 

About BT

BT is one of the world磗 leading providers of communications solutions and services operating in 170 countries.  Its principal activities include networked IT services, local, national and international telecommunications services, and higher-value broadband and internet products and services.  BT consists principally of four lines of business: BT Global Services, Openreach, BT Retail and BT Wholesale.

In the year ended 31 March 2006, BT Group磗 revenue was ?19,514 million with profit before taxation of ?2,040 million.

British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and encompasses virtually all businesses and assets of the BT Group.  BT Group plc is listed on stock exchanges in London and New York. 

For more information, visit www.bt.com/aboutbt

Media Contacts:
Sheila Wang
ZTE Corporation
Tel: +44 (0)20 8349 8058
Email: wang.xiaolan2@zte.com.cn