Further Strengthens ZTE's No. 1 Position in China's IPTV Market

5 December 2007, Shenzhen, China - ZTE Corporation ("ZTE"), a leading global provider of telecommunications equipment and network solutions further solidifies its market position as a leading provider of IPTV network solutions by clinching another major deal in China recently.  The company has won the world's first AVS-IPTV commercial network development bid offered by the China Netcom Group Corporation ("CNC"), a leading broadband communications and fixed-line telecommunications operator in China. Under the contract, ZTE will be the sole provider of IPTV network solutions for the project.

As the national audio/video coding and compression standard, AVS is a homegrown intellectual property in China that would enable local providers to save on patent fees imposed by foreign operators.  China's Ministry of Information Industry (MII) and CNC have been collaborating to drive the industrial implementation of AVS standard.  Trial tests on the use of AVS-IPTV for commercial purposes in Dalian, China had started since November last year, establishing a solid foundation for future IPTV developments nationally and internationally.

According to the National Working Group for Intellectual Property Rights Protection in China, AVS is regarded as an important breakthrough in transforming China from a "big producer to a strong producer" in the digital audio and video industry due to the technology's unique foundation and homegrown nature.
 
"We are proud to win the AVS-IPTV commercial network bid with China Netcom," says Mr Yu Yifang, GM of ZTE Multimedia & Terminal Products.  "AVS-IPTV is a technology that is still in its infancy in China with huge business potentials for large-scale deployment in the years to come.  This deal certainly validates our leading market position as a reliable provider of IPTV network solutions with strong in-house R&D capability and multiple IPTV network projects experience both locally and overseas. We expect the project to play a significant role on the future development of IPTV in China."

This is the first time that ZTE is collaborating with CNC to establish the IPTV/AVS commercial network, which required the company to manage within short production cycle and highly sophisticated architecture. With strong industry support and guidance from several local organizations including MII, CNC, CNC Research Centre, Liaoning Netcom and Dalian Netcom, ZTE has achieved optimal performance during the trial testing period thus ensuring future IPTV subscribers to get reliable network services.  

Currently, ZTE provides end-to-end IPTV total solutions specifically designed for deploying multimedia services over an IP network, enabling operators to deliver one-stop services over their existing network infrastructure.  ZTE has conducted majority of IPTV trials in China, as well as deployed IPTV systems in Europe, Asia Pacific, Latin America, among others.  Last year, the company clinched deals to construct IPTV projects for Beijing Telecom, Shanghai Telecom, and China Netcom.   ZTE has over 50 percent share of China's current IPTV product solutions market.

Media Contact:
Margrete Ma
ZTE Corporation
Tel: +86 755 26775207
Email: ma.gaili@zte.com.cn