Duesseldorf/ The Hague/ Barcelona, 17February 2011 - ZTE and KPN today announced a joint development programme focussed on the application of LTE technology in Germany and Belgium. KPN Mobile International and ZTE have scheduled a field trial program for 2011 to investigate the capabilities of ZTE's commercial equipment. The co-operation gives KPN the flexibility to speedily upgrade its network equipment to LTE in the future, if demand is there.

The 2010 spectrum auction in Germany put LTE network technology firmly on the agenda and gave KPN the opportunity to further enhance its competitiveness in the market.

"ZTE is a telecommunications equipment market challenger in Europe, very much in line with E-Plus' and KPN Group Belgium's development strategy," said KPN Mobile International CTO Erik Hoving. "This agreement further strengthens our cooperation in the telecommunications market. It has strategic significance for both KPN and ZTE in Europe, and also in terms of each company's international market position."

"We appreciate that KPN selected ZTE as a strategic partner and we are strongly focussed on the long-term partnership between our companies," said Shi Lirong, President and CEO of ZTE Corporation. "We support KPN with world-class telecom technologies and effective solutions with the lowest total cost of ownership in the industry to build high-speed networks. ZTE's advanced and future-proof SDR technology helps KPN optimise its operation efficiency to meet increasing demands and develop value-added services for their customers."

In December 2009, ZTE and KPN announced plans to conduct a comprehensive expansion of HSPA networks in Germany and Belgium starting in 2010. The programme was designed to establish a strategic partnership between the two companies for the development of future-proof networks in Belgium and Germany.

Under the agreement, ZTE has started a program to help transform KPN networks in Germany and Belgiumover a three year period using ZTE's SDR (Software Defined Radio) technology to provide users with HSPA + high-speed data services which enable cost-effective mobile broadband communications.

As a result of the seamless transformation from the existing network to the new one, KPN will be able to offer its customers in Belgium and Germany faster high-speed data services of upto 21.6 Mbps, enabling the operator to offer new mobile broadband services.

The initial agreement between ZTE and KPN involved the provision of access network technology, but has extended to cover end-to-end solutions including core network and wireless access technologies and Android handsets. The packet-based core network equipment deployed in Germany is now in commercial use, and can be easily upgraded to future technologies. More recently ZTE delivered the co-branded Lutea smartphone to KPN's E-Plus in Germany and KPN Group Belgium in December 2010.

During the year 2010, ZTE established a new company in Belgium, and opened a new office in Düsseldorf dedicated to the KPN transformation project as well as several new regional offices in Germany. In addition, ZTE also set up a customer Training Center in Germany and a 24/7 help desk to provide local support to KPN. By consistently delivering on its commitments, the company has proved its ability to deliver at the high level expected by European operators. To better support KPN, ZTE has created a diverse team consisting of technical experts from China and Europe.

About KPN
KPN is the leading telecommunications and ICT service provider in the Netherlands, offering wireline and wireless telephony, internet and TV to consumers and end-to-end telecom and ICT services to business customers. KPN’s subsidiary Getronics operates a global ICT services company with a market leading position in the Benelux, offering end-to-end solutions in infrastructure and network-related IT. Getronics manages 2.2 million workspaces. In Germany and Belgium, KPN pursues a Challenger strategy in its wireless operations and holds number three market positions through E-Plus and BASE. In Spain and France, KPN offers wireless services as an MVNO through its own brands and through partner brands. KPN provides wholesale network services to third parties and operates an efficient IP-based infrastructure with global scale in international wholesale through iBasis.