ZTE CPE products now deployed by half of top 20 operators worldwide

May 9 2011, Kuala Lumpur – ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly-listed global provider of telecommunications equipment and network solutions, today announced that its quarterly growth rate in CPE (Customer Premises Equipment) shipments in 2010 ranked first among major CPE vendors in the industry at Broadband World Forum Asia 2011 that, according to the latest research by market research firm Infonetics Research.

In Infonetics’ fourth quarter (4Q10) “Broadband CPE and Subscribers: PON, FTTH, Cable, and DSL” market forecast report, which tracks DSL, cable broadband, FTTH, and voice customer-premise equipment; residential gateways; and broadband subscribers, ZTE’s growth rate of 13.8% puts it in ahead of other industry players worldwide. In addition, shipment data of ZTE showed that its CPE products have entered 10 of the Top 20 and 5 of the Top 10 operators worldwide.

As a second ranked supplier of fixed-line access products across the globe, ZTE is also one of the first vendors to engage in CPE R&D and production. It has set up CPE R&D centers in Shenzhen, Shanghai and Nanjing of China, with a team of 1,200 professionals developing and marketing CPE products.

CSP, the home network middleware developed by ZTE, has such features as portability, openness and customizability, allowing it to shorten product development cycles by more than 30% and helping operators tailor their products quickly and efficiently. By cooperating with leading logistics firms, ZTE has built a global logistics system that ensures fast delivery.

ZTE’s CPEs have seen mass deployment worldwide by Top 20 operators such as China Telecom, Telefonica and China Mobile, helping them deploy a rich variety of services including IPTV, high speed Internet, distance education, telemedicine and Internet office connectivity.

ZTE Vice President Xu Ming commented that ZTE CPE products have achieved leapfrog development in the past several years in terms of shipment growth as well as the quantity and quality of the operators deploying the products. That achievement comes from ZTE always placing top priority on customer benefits and seeking to lower their costs and boost profitability by providing better customized services.

Following ZTE’s rapid development in 2010, ZTE’s CPE products have maintained steady growth in Q1 2011 by clinching orders from big name operators such as FT, DT, Telefonica and PCCW. To date, more than 60 million ZTE CPEs had been shipped to over 80 countries and regions, with the 60 millionth CPE presented to KPN.