Strength in technology innovation and commercial execution helps

ZTE lead in PON products

20 March 2013, Shenzhen, China – ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly-listed global provider of telecommunications equipment, network solutions and mobile devices, is pleased to achieve the global No. 1 ranking for shipments of PON (passive optical networking) products in a report compiled by industry consulting firm Ovum, as the company leveraged its market-leading technologies to win contracts and outperform competitors in this segment.

According to Ovum’s Market Share Report: 2012 FTTx, DSL, and CMTS Units, ZTE was the world’s leading vendor with 42% market share globally in shipments of PON optical line terminals (OLTs) in 2012, after the company shipped 1.72 million lines. Based on Ovum’s data, ZTE also ranked first globally in shipments of optical network terminals (ONTs) and optical network units (ONUs) with 32% market share, after the company achieved shipments of more than 13 million lines. Ovum’s data showed that ZTE attained market leadership while the total number of OLT ports shipped declined between 2011 and 2012.

For many years, ZTE has been able to maintain annual growth rate of more than 30% in its PON business, thanks to the company’s commitment to technology innovation and the growth in investment in FTTx networks globally. ZTE’s strong understanding of the market and superior technology has helped the company win contracts from the world’s main telecommunication operators as they build and optimize their optical networks, especially in the important markets of China, Asia Pacific, Europe and Latin America.

“ZTE’s leading position in the PON market is the result of broad recognition of our work from across the global telecommunications industry,” said Mr. Zhu Yongxing, General Manager of ZTE’s fixed-network products. “We will continue our efforts in innovation and service to develop our PON business, to support operators globally in building high-speed and intelligent broadband optical networks.”

ZTE supplies more than 40 percent of the PON products for each of the three main telecommunication operators in China, the world’s biggest investor in optical networks. In Asia Pacific, ZTE has a strategic partnership with Singapore Telecommunications, and has won major contracts with operators in Indonesia and Malaysia.

In Europe, ZTE is well-positioned in the PON market, serving the main optical network operators in countries including Russia, Turkey and Spain. ZTE also completed the construction of the optical network of Moscow, the largest scale network in Europe, and is well-positioned in Lithuania, the European market with the highest rate of FTTx network penetration. In Latin America, ZTE has helped the main operators in markets including Brazil and Uruguay complete the construction of large-scale FTTx networks.

ZTE’s leading position in the PON market is built on our commitment to technology research and innovation. In 2012, ZTE announced the industry’s first prototype TWDM-PON compliant with the latest standards during Broadband World Forum (BBWF), and demonstrated the coexistence and evolution of multiple access technologies including NG-PON2, XG-PON1, GPON, and WDM-PtP on the same platform and ODN. ZTE was also the first in the world to announce the commercial version of the system-class VECTORING, and set up the first commercial laboratory for XG-PON1.  ZTE introduced the industry’s first compact OLT product, and enriched and improved the forms and networking ability of PON OLT products.  ZTE announced the industry’s first end-to-end full-lifecycle optical operation and maintenance solution eODN, providing the rack-mounted optical path monitoring system eMonitor, to dramatically increase the efficiency of network planning, design, deployment, operation and maintenance, which has already been widely deployed.

At present, ZTE’s PON products serve more than 150 operators in 100 countries, with a combined total of 150 million lines in use, and bringing ultra-fast broadband connectivity to more than 40 million households.