25 June 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, has attained the world’s No. 2 ranking in the Internet Protocol Television (IPTV) market.

According to the Market Leader Report by Product and Region issued by Multimedia Research Group (MRG), ZTE ranked No. 2 in IPTV in six product categories as of March 30.

The report ranked ZTE No. 2 globally for IPTV, video-on-demand (VOD), IPTV middleware and IPTV set-top boxes (STB), three key IPTV equipment and services. ZTE’s IPTV VOD and middleware all rank No. 2 globally, with a market share of 11.3 per cent and 18.3 per cent respectively. ZTE’s IPTV STB also ranks No. 2 in the world, moving up from 3rd place in 2012, with a market share of 18.1 per cent as of the end of March this year. The report also stated that the company had robust growth, and excels among Asian IPTV equipment and service vendors.

"ZTE’s continued penetration of the IPTV market has enabled it to achieve the No. 2 global ranking in three product categories – STB, VOD and middleware,” said Norm Bogen, Vice President of Global Research at MRG.

MRG’s IPTV Market Leader Report by Product and Region includes analysis of over 100 IPTV equipment and software vendors and 946 IPTV service providers across the world. It researches the six key IPTV products - access systems, head-end, VOD, STB, middleware and content protection - across six regions (North America, Latin America/Caribbean, Western Europe, Eastern Europe, Asia-Pacific and Middle East/Africa) to evaluate market performance of IPTV equipment and software providers. One of its criteria for measuring market share is the quantity of users of the product (except for head-end systems).

"We’re glad that the report has acknowledged ZTE's market achievements comprehensively and objectively,” said ZTE Vice President for Multimedia Products Mr. Fang Hui. “The company will continue to bring global customers open, innovative, integrated, and cost-effective multimedia solutions, with the best-in-class user experiences.”

By the end of Q2 2013, ZTE had constructed 48 commercial IPTV offices worldwide with user capacity exceeding 20 million. The company also has deployed 48 IPTV commercial networks for operators worldwide, including China Telecom, Beltelecom, Bulgarian Mtel and Telkom. ZTE’s IPTV/OTT has innovative functions such as connectivity with social networking and video websites, video phone support and access to online app stores. These new functions will help operators compete with OTT TV with a view to making IPTV STB a home media entertainment center.

In addition, the world’s-largest H.264 IPTV network was built by ZTE for Jiangsu Telecom (a branch of China Telecom. The company’s IPTV is the only platform in the world that has the ability to integrate fixed network IPTV, Web TV, and mobile TV. Through collaboration with operators, ZTE also will become an OTT service provider in addition to an OTT equipment vendor. ZTE's innovative solution combines low bit rates, high definition, and OTT multi-screen integration technologies. It is applicable to the OTT mode dominated by licensees, IPTV + OTT mode (a collaboration mode between ZTE and telecom operators), and DVB + OTT mode (a collaboration mode between ZTE and broadcast and TV operators).